In his new book “The Fall and Rise of Small Businesses: Race, Government Aid, and Growth After the Pandemic” UCLA Luskin Professor of Public Policy Robert W. Fairlie examines one of the most consequential periods in modern economic history, tracing the impact of the COVID-19 pandemic on small businesses, government relief efforts and racial inequality.

The book provides the first comprehensive analysis of how small businesses fared from the onset of the pandemic through the economic recovery five years later. Drawing on the latest data on business activity and newly released U.S. Census Bureau data on Paycheck Protection Program (PPP) loans and business outcomes, Fairlie explores how federal aid, public policy and entrepreneurship shaped recovery across the United States.

Although mandated social distancing restrictions led to widespread business closures and economic disruption, Fairlie finds that overall small business activity has rebounded — with particularly strong growth among Black, Latino and Asian entrepreneurs. At the same time, retail and restaurants industries, continue to face significant challenges, highlighting the uneven nature of the recovery.

The book also examines the effectiveness of nearly $1 trillion in federal small business assistance and considers how emerging technologies, changing consumer behavior and evolving economic conditions will influence the future of entrepreneurship. Combining rigorous research with timely policy analysis, “The Fall and Rise of Small Businesses” offers valuable insights for policymakers, business leaders and researchers seeking to understand the lasting economic effects of the pandemic.

Small businesses, especially those owned by minorities, were decimated by the COVID-19 pandemic, but they staged a remarkable rebound. This engaging, fast-moving, and meticulously-researched volume describes this experience and distills important insights on small business dynamics and potential policy levers.-James Poterba, Mitsui Professor of Economics, MIT; President, National Bureau of Economic Research