Economics
New York Fed Study Shows Why More Black-Owned Firms Are Closing
- Black-owned businesses declined by 41% from February to April
- Uneven reach of government aid among reasons for closures
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Black-owned small businesses are twice as likely to shutter as small businesses overall during the coronavirus pandemic because they suffer from pre-existing vulnerabilities, according to a study released Tuesday by the Federal Reserve Bank of New York.
Data show a 41% drop in the number of active small business owners who are Black from February to April, compared to 22% of owners overall, according to the study. Latinx business owners fell by 32%, while Asian business owners dropped 26% and white business owners retreated 17%.