Many small businesses took a crippling hit during the first few months of Covid-19, but small black-owned businesses took a particularly horrible blow. By April over 400,000 black-owned business es found themselves inactive. That was a plunge of about 41%.
Much of the country was reopening by June which created a decline in inactive black-owned business. Unfortunately, though, their inactive numbers were still double those of their white counterparts at 19%. As of September those numbers have climbed to about 1.1 million active black owned businesses. This is an increase of 2% from February.
Of the increase, the collector of the data, Robert Fairlie, an economics professor at the University of California-Santa Cruz said, “The rebound might be due to a concerted effort by customers to buy from Black-owned businesses,” Fairlie said by email. “I’m not sure if this explains everything, but it certainly helped.”
Latinx small business owners also saw an increase by September with their numbers up from February 1 %. The numbers for black and latinx business increasing while white, immigrant, and Asian businesses are down 1%, 13%, and 17%, respectively, compared to February.
Original Article: The Washington Post
Image Credit: The Washington Post