By Jonnelle Marte

(Reuters) – Many small businesses face financial difficulties and are having more difficulty managing supply chain problems and finding enough employees, according to a Federal Reserve survey.

The report revealed that while some small businesses saw their revenue rise, others have not. However, smaller companies and those owned by minorities have experienced fewer gains.

Fed researchers stated in a statement that “Many small business have not recovered from prepandemic levels”, with the impact of the pandemic hitting more hard firms in the leisure, hospitality, and smaller businesses owned by persons of color.

Between September and November, 2021, the survey found that 63% still have revenues lower than pre-pandemic levels. 43% reported having lower employment. The Fed surveyed nearly 11,000 small-sized employers in the United States that employ less than 500 people.

According to the survey, 60% of companies identified hiring challenges and 60% mentioned supply chain issues as top operational problems in the past twelve months.

This report was done with 12 Fed regional banks and found that small businesses still have a rough financial situation due to the pandemic.

According to the survey, 59% (or more than half) of companies surveyed stated that they are in “fair” and “poor” financial condition, which is almost identical to 57% one year prior.

These results continued to differ by race. White-owned companies rated their financial situation as either “fair” (or “poor”) by 55%. This was similar to the previous year, with 81% being Asian-owned, 76% Black-owned, and 74% Hispanic-owned businesses.