Coronavirus and Black-owned Businesses

Patrick: Welcome to SportsWise, folks. This week, we, the SportsWise team, turn to the legendary—and only remaining founding member—Russ Adams, to give us his take on the status of Black Americans in regard to business ownership. Welcome to the floor, Russ.

Russ: Thank you. I’m glad to be here, and even more glad that you and the folks out there want to hear my opinion of race-balancing in “regular” life, as well as in sports.

Patrick: Let’s hear it. Speak. Russ: The number of Black businesses in the United States has plummeted more than 40% since the coronavirus shut down most of the economy. The pandemic, so far, has negatively affected Blacks more than any other race. As of April, the country has lost 450,000 Black businesses according to the Washington Post -

Patrick: Wow, that’s a lot of businesses—let alone within just one particular race.

Russ: That is. I don’t know, man…

Patrick: You do know. Go on.

Russ: One of the reasons is that most Blacks own businesses like beauty salons, taxi services, daycares, and, of course, these had to shut down due to COVID-19. These are the jobs where social distancing is nearly impossible. How can someone paint your nails six feet away? Or care for your kid at double-arm’s length?

Patrick: A tough ask.

Russ: Exactly. It’s very unfortunate. I mean, there are more reasons—ills… and false ills—but I won’t talk about those at the moment. What I will say is that Blacks exist in those certain areas that folks in leadership positions feel are the areas in which the people truly fear the virus, plus the people have less money; four months of shutdown, and a large portion literally without income, has been so overwhelming that 58% of Black households according to the NAACP report “They won’t make it”—while just 23% of white households describe their situation as such.

Patrick: That’s a huge difference. To be honest, I would have never thought the number would be that high for Black households.

Russ: Why?

Patrick: If we have nothing else, we always have hope for better. At least, from what and who I know.

Russ: I feel you. But we do have roadblocks to stutter and stall our improvement. We have to progress to get further into the game. Give us a few yellow lights instead of red ones and we may just make some things happen that not only elevate Blacks, but, also, elevate the whole of our society. You know what I’m saying?

Patrick: I do.

Russ: Blacks and Hispanics are 40 percent of the US population but they own only 20 percent of the employer businesses, according to a February 2018 report for the Small Business Administration. Blacks and Hispanics were less likely to get business loans than Whites. Blacks, in fact, were more likely to use credit card debt.

Patrick: Not a whole lot to say to that.

Russ: Now, I realize this is SportsWise, so, yeah, all of this I’ve been speaking about applies to the many, many Black owners within the Black sports community. Not only are there Black owners who own teams that have been affected, but there are many Black players who also own their own businesses, and who will suffer—though battle—through this tough moment in our world’s history.

Patrick: Man, Russ…I wasn’t expecting all of this. You’re making me think. Feels weird.

Both: (Laughing.)

Russ: Nah, man…what it comes down to is EVERYONE is affected. When one person in a five-man group hurts, it destroys the team. That one person is an unrealized asset. Everyone has a part in this—sounds “We Are the World,” I know this, but listen when I say: Y’all, we’re in this thing together. We can not do it alone.

If you have any comments or questions, please e-mail us at pedwards@streetwise.org