MINORITY-OWNED FUNDING GAP

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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.