IDEAS home Printed from https://ideas.repec.org/p/fip/c00034/88855.html
   My bibliography  Save this paper

An Uphill Battle: COVID-19’s Outsized Toll on Minority-Owned Firms

Author

Listed:
  • Lucas Misera

Abstract

Since COVID-19 sparked state-mandated lockdowns nationwide in March, data suggest that minority-owned small businesses have been disproportionately impacted by the pandemic, facing higher rates of closures and sharper declines in cash balances as compared to nonminority-owned small businesses. Research shows that Black-owned businesses closed at more than twice the rate of white-owned firms and experienced declines in cash balances nine times as steep as nonminority firms in some cases. Black-owned businesses faced the greatest impact of any racial group, though Latinx- and Asian-owned businesses also experienced outsized closures and declines in cash balances. This report collects insight from various sources into the pandemic’s effect on minority-owned firms thus far and examines possible explanations for race-level differences in COVID-19’s impact on businesses.

Suggested Citation

  • Lucas Misera, 2020. "An Uphill Battle: COVID-19’s Outsized Toll on Minority-Owned Firms," Community Development Publications 88855, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:c00034:88855
    DOI: 10.26509/frbc-cd-20201008
    as

    Download full text from publisher

    File URL: https://doi.org/10.26509/frbc-cd-20201008
    File Function: Full Text
    Download Restriction: no
    File URL: https://libkey.io/10.26509/frbc-cd-20201008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mark E. Schweitzer & Rachel Widra, 2021. "What’s Holding Back Employment in the Recovery from the COVID-19 Pandemic?," Economic Commentary, Federal Reserve Bank of Cleveland, vol. 2021(23), pages 1-8, December.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:c00034:88855. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joanne O'Dell (email available below). General contact details of provider: https://edirc.repec.org/data/frbclus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.