Select Page

Don't Tread On My Site

Black-Owned Businesses Lead Rebound To Pre-Pandemic Levels

Load WordPress Sites in as fast as 37ms!

Black-Owned Businesses Lead Rebound To Pre-Pandemic Levels

Tyler Durden

Sat, 10/31/2020 – 13:15

Black-owned businesses, which were hit hardest during the peak COVID-19 lockdowns, have rebounded to their pre-pandemic numbers according to research based on data from the US Census Bureau.

<!–[if IE 9]><![endif]–>

Brandi and Jermail Shelton, owners of Just Add Honey Tea Company in Atlanta

In April, the number of black-owned businesses cratered by 41% – only to decline to 19% by June, and finally increase to approximately 1.1 million nationwide – a 2% increase from February’s pre-pandemic figure, according to Bloomberg.

<!–[if IE 9]><![endif]–>

Of course, no feel-good statistics which might help Trump would be replete without a sprinkle of doubt, such as UC Santa Cruz economics professor Robert Fairlie, who collected the data – and “cautioned that the Census numbers fluctuate from month to month, so it’s possible Black owners didn’t see an absolute increase over the pre-pandemic period.” He adds that ‘the data don’t address whether the owners are actually making money or not.’

Beyond the caveats on the lumpy data, the reasons behind the surprising recovery are uncertain. The movement to support Black-owned businesses that sprung up during nationwide protests over police brutality may have been a contributing factor, according to Fairlie. Many African-American entrepreneurs noted a surge in business over the summer. –Bloomberg

“The rebound might be due to a concerted effort by customers to buy from Black-owned businesses,” said Fairlie, adding “I’m not sure if this explains everything, but it certainly helped.”

Bloomberg, still scratching their heads, notes that it’s unclear if the boost comes from businesses reopening or new firms being created at a faster pace than those which have closed permanently. One possible explanation is a recent spike in entrepreneurship in the US – with new business formation filings climbing 77% in the third quarter vs. the preceding quarter – an 82% jump from a year earlier.

Latino businesses also saw a September boost, up 1% from February pre-pandemic levels following a drop of as much as 32% in April, according to Fairlie.

The number of white business owners, meanwhile, were down 1% in September, while Asians and immigrants have also seen sharp declines of 13% and 17% respectively vs. February.

This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

Advertise on Libertarian Hub

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.