landscape of the black-white business ownership …...landscape of the black-white business...
TRANSCRIPT
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LANDSCAPE OF THE BLACK-WHITE BUSINESS OWNERSHIP GAP
Top 10 American Fortune 500 firms generate more in annual sales revenue
than all 2.58 million black-owned businesses combined.
Walmart = $514 billion in revenue, 2,200,000 employees
Top 100 black-owned firms = $24 billion in revenue,
73,940 employees
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LANDSCAPE OF THE BLACK-WHITE BUSINESS OWNERSHIP GAP
• Nonemployer firms? 79% of all white-owned businesses and 96% of all black-owned businesses
• Sales revenue? 7.7 percent from white-owned are and 31% from black-owned businesses nonemployer-generated
black-owned employer firm:(average) $666,169 in annual revenue
sales and $23,544 employee annual salary
white-owned employer firm:(average) $2,037,372
in annual revenue sales and $33,690 employee annual salary
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PASSION FOR BLACK BUSINESS OWNERSHIP
• Black Americans are almost twice as likely to start a business compared to white Americans (Bates, 1998)
• From 2007 to 2012, black-owned firms (employer + nonemployer) grew from 1.9 million to 2.6 million (Survey of Business Owners)
• Black women are the only racial or ethnic group with more business ownership than their male peers (Federal Reserve)
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On average, Black women receive $36K in venture capital vs. $1.3M by White males’ start-up
enterprises that ultimately fail (Asset Funders Network, 2019)
THE VENTURE CAPITAL GAP
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K E Y O B S TA C L E S TO B L A C K O W N E D E N T R E P R E N E R I A L PAT H WAYS
Credit and Loan
Discrimination
Lack of Intergenerational
Transfers
Lack of Mentorship Networks
Historical Racial Bias
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W E A LT H A S A N I N P U T F O R T H E PAT H WAY I N TO B U S I N E S S O W N E R S H I P
• white American adults have 13 times the wealth of black American adults (SCF, 2016)• median black household has three cents per dollar held by the median white household (SCF, 2016)
• seed capital for black entrepreneurs
• baby bonds (young adult trust accounts)
• program of reparations
Policy Recommendations
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