A new study shows Black and Latino households have lower rates of business ownership than white households.
The report, published by the Center for American Progress, reveals that African Americans are 5 percent less likely to have a business in their household compared with white households—even at the same levels of income, wealth, and education. Hispanic households are 6.7 percent less likely.
"There are structural barriers that are holding back people of color and women from becoming entrepreneurs, beyond just differences in income and wealth that are correlated with business ownership, and this exacerbates economic inequality faced by these groups and holds back American business dynamism,” said Kate Bahn, Economist at CAP.
To turn the tide of this statistic, the authors recommend encouraging entrepreneurship among youth in the form of entrepreneurship apprenticeships and fostering early training and education around entrepreneurship for young people, among other fixes.
Racial divisions aside, the Center for American Progress also reports that nearly one million entrepreneurs are missing from the U.S. economy relative to the percentage of business-owner households in the 1990s.
Let’s reverse this trend by continuing our work in supporting Black businesses and teaching the next generation about ownership.