Black-owned businesses more likely to shut down for good after pandemic, research shows

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    KANSAS CITY, MO (KCTV) — New research shows black-owned businesses are more likely to shut down for good after the pandemic.

The disproportionate number of black-owned businesses closing will lead to a disproportionate number of black people unemployed. That’s because we know people hire people who look like them.

Experts say this is a product of systemic racism.

Black-owned businesses have less access to capital and are more likely to be denied business loans.

To fix these problems advocates say there should be policy changes to address the inequities.

“We’ve had a whole lot of desperation going on right now because of uneven treatment lack of jobs lack of opportunities, and I think we’ve been able to convince the broad part of America that this is part of the systemic problem so you can either let us join the economy or spend your dollars as if you were fighting crime,” said Kelvin Perry, president of the Black Chamber of Commerce Greater Kansas City.

When it comes to local businesses and closures, it’s very early so the chamber hasn’t had a chance to access the impact.

But, a survey from April found that more than 60% of black business owners said they would not be able to retain their employees if business were not back to normal by mid-June.

Experts say we can expect to learn more about the full impact of COVID-19 on small businesses in the next 3-6 months.

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