International Social Justice Racial Equity Impact Investment Company
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One of the best ways to build wealth in the United States is to own a business. But just 2% of businesses with employees are Black-owned, according to an Alliance for Entrepreneurial Equity report. This factor has played a big part in widening the racial wealth gap in the US. Black households, which comprise nearly 16% of the US population, held just under 3% of overall wealth, the Federal Reserve's 2019 Survey of Consumer Finances found. White households, by contrast, had nearly 87% of the wealth but only represented 68% of the population.
While there have been no entrepreneurial ventures among Blacks in the United States, systemic racism and a persistent lack of adequate support and funding have made it much harder for Black-owned businesses of all sizes to thrive.
In the first half of 2021, just 1.2% of US venture dollars went to Black entrepreneurs. The disparity is even more acute regarding obtaining a bank loan. Eight out of ten Black-owned businesses fail within the first eighteen months. This fact is largely due to Black-owned business owners not receiving adequate business capital.