The coronavirus pandemic has led to the largest drop in small business ownership in the United States, hurting black business owners the most, according to a June study from an economic research organization.
3.3 million business owners are not actively working, and 22% of the closures came during the February-to-April window of coronavirus restrictions, reportedAxios, citing a National Bureau of Economic Research working paper. In the whole Great Recession of 2008, small business owners shrank by 730,000 at 5% reduction, the study noted.
Of the 3.3 million, 1.1 million small business owners were black, according to the study. Black business owners shrank from 1.1 million to 640,000 — a 41% difference.
Latino business owners represented the second-largest loss at 32% from February to March, the study showed. Asian business owners were at 26%, and 17% white business owners, the