The global coronavirus pandemic has upended business for companies across the US, but it has dealt Black small businesses an especially hard blow, according to a paper published by the National Bureau of Economic Research (NBER).
The number of African-American business owners fell from 1.1 million in February to 640,000 in April, a 41% decline. By comparison, the overall number of small business owners dropped by 35%.
Black companies are more likely to be in sectors vulnerable to Covid-19-related disruptions—including leisure, hospitality, and retail—and less likely in categories deemed “essential,” such as grocery stores.
