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January fires destroyed thousands of small businesses — most in people's homes
A firefighter douses a hot spot as a brush fire burns in the Pacific Palisades.
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David Swanson
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AFP
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Thousands of small businesses were destroyed during the January fires, according to new research from the UCLA Latino Policy and Politics Institute.
“We're estimating that about 2,600 small businesses were destroyed within the Pacific Palisades area,” and about 1,800 in the Altadena area, said Silvia González, co-author of the study, which looked a the impacts of the fires on businesses.
That equates to one-third and one-half of businesses inside the Altadena and Pacific Palisades fire perimeters, respectively, with the Pacific Palisades being the hardest hit.
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González said the study also showed that microbusinesses, with one to nine employees, many operated out of homes, made up the majority of the small businesses affected.
The bulk of these businesses belonged to the service-oriented economy, researchers found. That includes establishments like childcare centers, accountants, and therapists, often reporting less than $250,000 in annual revenues.
Many of the businesses also acted as community hubs.
We know that small businesses provide so many services for the community. They're a place for gathering. They're a place for building community.
— Silvia González, co-director of research at the UCLA Latino Policy and Politics Institute
“We know that small businesses provide so many services for the community. They're a place for gathering. They're a place for building community,” González said.
Earlier this year, the institute convened a gathering of Latino and Black business owners. They heard that certain government policies were not enough to help small businesses in times of crisis.
“A lot of the business owners that we spoke to really voiced the frustration over the lack of grant-based recovery versus loans that they have to repay,” González said.
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Researchers aren’t done studying the impact of the January fires on small businesses. The next stage, González said, will involve talking to business owners about what kind of support they need now, nearly a year after the fires.
The goal, she added, is to help them, as well as helping improve public policies so that recovery is smoother after the next major disaster.
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