Study Examines Impact of COVID-19 Pandemic on Small Businesses in L.A.’s Ethnic Neighborhoods

The UCLA Center for Neighborhood Knowledge (CNK), in collaboration with Ong & Associates, recently released a new report on COVID-19 pandemic impacts on minority-owned businesses in Los Angeles. Previous CNK studies have documented the disproportionate adverse impacts of the pandemic on marginalized neighborhoods in labor and housing markets. The new report focuses on small businesses and examines whether the COVID-19 crisis disproportionately impacted local businesses in ethnic neighborhoods in Los Angeles. Answers to this question provide academic insights on racial systemic inequality and inform policy interventions, according to Paul Ong, co-author of the report and CNK director.  “If the disparities are significant, there are profound policy implications. Race-conscious government efforts to address systemic racism are needed to ensure an equitable economic recovery,” the researchers said. The team used location data to analyze foot traffic patterns to restaurants and retail locations in ethnic and comparison neighborhoods from February through September 2020. The results indicate an earlier and steeper decline in commercial activity in Chinatown and, while retail was resilient in ethnic neighborhoods, restaurants suffered greater declines on average than in comparison neighborhoods. Ong and colleagues found that overall, the ethnic neighborhoods collectively performed worse than the county as a whole prior to lockdown and performed no better than the county under shelter-in-place orders. The project was partially supported with grants from the UCLA Luskin School of Public Affairs (funded by Southern California Grantmakers) and from the UCLA Asian American Studies Center (funded by the Stanley Kow Lau and Dora Wong Lau Endowment).


 

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