In 2019, businesses owned by Black women represented 42% of all new women-owned businesses, according to a report by American Express. That’s three times their share of the female population, which is just 14%.
But in 2020, Black-owned businesses were hit particularly by the economic downturn of COVID-19. Black-owned companies closed their doors at 2.5 times the rate of white-owned businesses, seeing a decline of 42% between February and April 2020. White-owned businesses, meanwhile, fell just 17%.
According to this article by Forbes contributor Geri Stengel, limiting the impact of the economy on Black-owned businesses, particularly those owned by women, will require more than PPP loans and other economic support. Stengel argues mentorship and other levels of support and education will be necessary to support these vital businesses and business owners.