![]() When did African Americans first begin pursuing entrepreneurship?Īfrican Americans have a long and rich history of entrepreneurship. ![]() companies, with Asian- and Hispanic-owned firms comprising 9.7% and 5.8% of the market share, respectively. In 2017, white-owned businesses accounted for 81% of all U.S. Despite this increase, Black-owned businesses continue to lag behind that of whites and other minorities in terms of market share. In 2014, African Americans owned 2% of U.S.-based companies. stack up when compared to other racial/ethnic groups?Īlthough African American business ownership remains on the rise and is continually increasing, growth has been incremental. Statistically, how does Black entrepreneurship in the U.S. 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. “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.” 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. 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. The wealth differential between business owners and non-business owners is significant, and this wealth advantage is even more pronounced for minorities and women.”įor example, Howard says, the median net worth for Black business owners is 12 times higher than Black non-business owners. Another important advantage of entrepreneurship is that successful business ownership is one mode for achieving personal wealth. “According to the Survey of Business Owners, the existing number of Black-owned businesses have created over 1 million jobs and generated over $165 billion in revenue. “There are many advantages of entrepreneurship - one of them being it promotes substantial economic growth,” Howard says. In a new study, Howard and her CBCF colleagues researched strategies that large banks can implement to help bridge the economic divide.
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