–In the U.S., 17% of Black women are in the process of starting or running a new business, compared with 10% of white women and 15% of white men –only 3% of Black women surveyed were running a “mature” business more than three and a half years old –61% of Black women entrepreneurs self-fund their…
In a 2020 report, the CBO found that “entrepreneurship in the economy has declined significantly over the past four decades.” This is a matter of concern because “new firms provide innovative products and services, improve the productivity of the workforce, and ensure competition in the marketplace.” Cato Institute May 5, 2021 | Number 916 Entrepreneurs and Regulations…
Generational discrimination along sexual and racial lines – compounded by large wealth disparities – makes it harder for minority entrepreneurs to access the financial resources they need to build sustainable businesses. According to 2017 data from the U.S. Federal Reserve, more than half of Black-owned companies had their loan applications rejected – twice the rate of…
The pandemic has laid bare a 40-year slow decline in American entrepreneurship. Over that time, we have lost our understanding of what it takes to build a successful small business. The one-in-a-million tech entrepreneur grabs headlines. But our relief efforts should focus squarely on helping the vast majority of American founders. Fortune May 2, 2021…
we first need to identify the specific barriers that are holding back minority-owned businesses the most. In many cases, access to financing is one of the most obvious and detrimental barriers for these business owners, along with a lack of access to educational resources around business management skills. Forbes April 20, 2021 The Funding Gap:…
In 2008, banks made 87,274 loans for less than $100,000 to Portland-area small businesses, according to data collected pursuant to the Community Reinvestment Act. By 2019, that had dropped 35% to 56,963 loans. In dollar terms, Portland-area businesses got more than $1 billion in loans for less than $100,000 in 2008, but by 2019 that…
Yahoo News April 15, 2021 Black and Hispanic firms half as likely to get needed financing, Fed study finds (Reuters) – The coronavirus pandemic exacerbated the challenges faced by minority-owned businesses, which experienced higher rates of closures and revenue losses and had more trouble accessing credit than white business owners, according to a report by…
“…as the PPP experience demonstrates, a larger share of capital is going to white entrepreneurs and small-business owners, while many of their counterparts of color lack the capital they need to survive and grow. This is not a problem just for those small businesses or the communities they serve; it has a negative impact on…
Reproduced from Qualtrics for QuickBooks survey: Chart: Axios Visuals
“But when the PPP initiative inevitably winds down, what remains could be an ecosystem of traditional lenders without the risk appetite to finance SMBs (small- to medium-business), and a community of FinTechs that may be slow to fill the gap.” PYMNTS.com April 9, 2021 Avoiding The Bait-And-Switch Of Small Business Finance By PYMNTS Trust is…