Posts

Showing posts with the label shutdown

Black-owned businesses took a disproportionate hit amid shutdown

Image
William Michael Cunningham October 20, 2013

The partial government shutdown did not impact all businesses equally. My research indicates black-owned businesses were hit harder than most.

Many are located in states that receive substantial federal aid, such as Maryland and Virginia, and they tend to be in industries such as health care, administration, transportation, professional services and retail that are sensitive to any decline in federal spending.

As a result, these companies can experience a double hit. I estimate there are roughly 1.9 million black-owned businesses in the United States, and they generated $131 billion in 2012. That suggests the monetary impact of the shutdown on their businesses to be $10 million per day.

We saw the effects. National parks and federally owned museums closed. Tourism, a major industry in the D.C. area, was, as a result, negatively affected. This impact will be felt for some time, since overseas offices that give visas to foreigners seeking to …

Impact Investing