Economics
Black-Owned Firms Still Close at Double Whites’ Rate in U.S.
- Study shows racial gap persisted in May, in spite of rebound
- Immigrants, Asian businesses also shuttered disproportionately
This article is for subscribers only.
Black-owned small businesses continue to bear the worst of Covid-19’s economic pain in the U.S., shuttering at a rate that’s more than double that of White owners despite a partial rebound in May, according to a recent study tracking closures across the country.
Nationwide, 26% of African American business owners closed between February and May, compared with 11% for their White counterparts, a National Bureau of Economic Research paper shows. Black business owners are faring worse partly because of their heavy concentration in industries deemed non-essential and forced to shutter in lockdowns. Immigrants were a close second among demographic groups, with a 25% closing rate.