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Did COVID Change the Black Neighborhood Startup Deficit? Evidence from the Startup Cartography Project

Author

Listed:
  • Catherine E. Fazio
  • Jorge Guzman
  • Scott Stern
  • Yan Xu

Abstract

Motivated by William Julius Wilson’s account of concentrated disadvantage, we examine a local poverty-trap interpretation of low entrepreneurship in Black neighborhoods. Using registration data from 38 states, we document a long-standing Black neighborhood startup deficit. Amid shocks that raised expectations of greater economic activity, the deficit reverses sharply in 2020, particularly where pre-existing deficits were larger. While the overall surplus attenuates, relative entrepreneurship remains elevated in high-deficit Black neighborhoods, and neighborhood-oriented entrepreneurship also remains elevated through 2024. Together, these patterns are consistent with a partially sustained shift toward a higher-activity equilibrium.

Suggested Citation

  • Catherine E. Fazio & Jorge Guzman & Scott Stern & Yan Xu, 2026. "Did COVID Change the Black Neighborhood Startup Deficit? Evidence from the Startup Cartography Project," NBER Working Papers 35752, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:35752
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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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