COVID-19 has had a major impact on U.S. small businesses, especially “Main Street” establishments such as restaurants and retail stores.
Black and Hispanic business owners have struggled the most. A recent study by the Bureau of Economic Research documents a general decline of 22% in active business ownership between February and April 2020, with a greater decrease of 32% in active Hispanic business ownership, and almost twice the decrease among Black business owners (41%).
At the end of 2019 (before COVID), 32% of small businesses were profitable and growing. That number has plunged to 12.2%; profitable and steady went down from 18% to 12.1%; profitable but contracting went up 5.1% to 9.2%. The number of businesses at break-even went down slightly from 19.6% to 17.7%. Non-profitable businesses increased from 25.3% to a massive 48.7%.
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