Black businesses were slammed by the pandemic-induced recession of 2020.
Although they bounced back fairly strongly in 2021–according to research by Robert Fairlie, a professor at University of California, Santa Cruz–many Black businesses still have some of the vulnerabilities that existed before, such as low cash reserves and difficulty accessing credit relative to other groups.
These vulnerabilities will likely still exist in the event of another downturn, the odds of which are growing.
“If we do slip into a recession I predict that it will be bad for Black-owned businesses,” Fairlie tells Forbes. He added that many such businesses already struggled through the pandemic “and don’t have large cash reserves, owner wealth, or access to bank credit to weather another recession.”
The Wall Street Journal reported earlier this week that the economists it surveys have dramatically raised