5 FACTS EVERY BLACK AND Latinx BUSINESS OWNER SHOULD KNOW
Health affects the bottom line.
An American Cancer Society study found that “$3.2 billion in lost earnings would have been avoided in 2015 if non-Hispanic (NH) blacks had equal years of life lost from cancer deaths and earning rates as NH whites.”
Widespread economic challenges impact Black and Latinx businesses differently.
Statistics compiled by the National Bureau of Economic Research reveal that between February and April 2020, when the coronavirus pandemic first hit the United States, 41% of Black-owned businesses shuttered, compared to 17% of white-owned businesses.
Raising capital is harder for Blacks.
The Brookings Institute reveals significant disparities in initial investment. “Black-owned businesses start with approximately a third less capital than their white peers and have difficulties raising private investments from mainstream investment systems. Only 1% of Black business owners obtain loans in their founding year, compared to 7% of white business owners.”
Home ownership is key.
“If public policy successfully eliminated racial disparities in homeownership rates, so that Blacks and Latinos were as likely as white households to own their homes,” liberal think tank Demos explains, “median Black wealth would grow $32,113 and the wealth gap between Black and white households would shrink 31%.”
Black women are a force.
“Nineteen percent of all employer-based businesses were female- led—but 36.1% of all Black-owned businesses were headed by women. That’s the highest share of businesses within any racial or ethnic group,” notes USA Facts.
It is often said that knowledge is power
While this old adage may be true, and we offer you a little insight here, it can take a lot more resources to build a great business that has a community focus. Contact us today to learn more about how we can help.