Title: Study: Black entrepreneurship in the United States
Headings: Study: Black entrepreneurship in the United States
Study: Black entrepreneurship in the United States
Statistically, how does Black entrepreneurship in the U.S. stack up when compared to other racial/ethnic groups?
When did African Americans first begin pursuing entrepreneurship?
How has America's history of slavery, Jim Crow laws, and racial discrimination impacted Black entrepreneurial growth?
What role does financial literacy play in Black entrepreneurship?
How do disparities in Black business ownership affect Black families and communities, especially in areas that remain segregated today?
What are some creative ways that Black entrepreneurs have managed to overcome these barriers?
What were your study's findings surrounding the small business loan process?
What else can major commercial and retail banking institutions do to better support Black entrepreneurs and businesses?
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Content: Further, when examining the net worth of Black business owners in comparison to the net worth of white business owners, it becomes clear that entrepreneurship represents a pathway to narrowing the racial wealth gap. While whites have 13 times the wealth of African Americans, when comparing the median wealth of Black and white business owners, the median wealth gap decreases substantially. "What these figures illustrate is that Black business ownership, more so than even education," she says, "is a tangible pathway for African Americans to achieve economic parity and close the racial wealth gap." We caught up with Howard to explore the history of Black entrepreneurship in the U.S., barriers to growth, the impact on African American communities and families, and procedural and financial investments that commercial and retail banks can employ to help shore up the gap. Statistically, how does Black entrepreneurship in the U.S. stack up when compared to other racial/ethnic groups? Although African American business ownership remains on the rise and is continually increasing, growth has been incremental. In 2014, African Americans owned 2% of U.S.-based companies. In 2017, this figure inched to 3.5%. Despite this increase, Black-owned businesses continue to lag behind that of whites and other minorities in terms of market share. In 2017, white-owned businesses accounted for 81% of all U.S. companies, with Asian- and Hispanic-owned firms comprising 9.7% and 5.8% of the market share, respectively.