The variety of Black-owned companies has rebounded from the pandemic, however we don’t know the way effectively they’re doing
1.1 million: That’s what number of Black enterprise homeowners there are within the U.S. as of September, which is 2% greater than in February, and a pointy rebound from the early months of the pandemic, in line with knowledge presented by Bloomberg.
It is a shocking statistic, since Black-owned companies have been among the many hardest hit by the pandemic. Many could not access the emergency loans offered by the PPP, and the variety of Black enterprise homeowners declined by 41% in April, which slowed to 19% in June, however was nonetheless double the decline within the variety of White enterprise homeowners.
So what explains the speedy rebound within the variety of Black enterprise homeowners? The information don’t have a solution, however shoppers looking for out Black-owned companies within the wake of the Black Lives Matter protests this summer season might be one contributing issue.
The statistic can also not be as constructive a improvement because it appears. It says nothing about whether or not these companies are earning profits. And on condition that Black unemployment remains at high levels, and has constantly been increased than the White unemployment price in the course of the pandemic, it could be that lots of these new enterprise homeowners have taken to entrepreneurship out of desperation.
Looks like lots of people will discover out if a pandemic is the best time to start a business.