Los Angeles Wildfires Disproportionately Impacted Small Businesses, UCLA Study Finds
A new research series released today by UCLA’s Latino Policy and Politics Institute (LPPI) and Center for Neighborhood Knowledge (CNK) details the significant economic impact of the January 2025 wildfires on small businesses in Los Angeles County, particularly in Pacific Palisades and Altadena.
The three-part study, produced by the Economic Recovery and Entrepreneurship Project (TEREP), provides a comprehensive look at the business landscape before, during, and after the fires, revealing that microbusinesses—often home-based—bore the brunt of the damage. Researchers found that up to half of the businesses within the fire perimeters were destroyed, with microbusinesses accounting for the majority of losses. This is particularly concerning as small businesses are vital engines of local job creation and economic stability.
Six months after the fires, while formal business closures were limited, they were concentrated among microbusinesses, and a notable number of businesses were sold as parcels. “Small businesses are the backbone of our local economies, yet they are often invisible in disaster recovery,” said Silvia González, director of research at LPPI. “Through this research, we can ensure their experiences are not only documented but also drive solutions that help communities recover and thrive after crises.” Further research into disaster preparedness can be found at Ready.gov.
The study highlights the interconnectedness of housing and business recovery, as many microbusinesses operate from homes. Paul Ong, director of CNK, stated, “CNK’s mission is to understand neighborhoods…This project highlights the critical role of small businesses and the impacts they face from the wildfires. Through this research, we can identify barriers to recovery and help design policies and programs that promote a full and equitable rebuilding.” You can read the full briefs here.
UCLA researchers will continue to monitor the long-term challenges faced by small business owners and develop data-driven recommendations for future disaster planning and resilience.
