Black-Owned Businesses Are Less Likely to Receive Funding and Therefore Don’t Ask

Black female entrepreneurs are the fastest-growing group of entrepreneurs in the U.S., likely due to the discrimination against women and especially women of color in the workplace, yet black-owned businesses continue to be underfunded. It’s true that black business owners are far less likely than other entrepreneurs to seek capital when they need it, but is it their fault? After all, they are far less likely to receive funding and, when they do, far less likely to get the full amount requested.

It’s clear that supporting black entrepreneurs and business is important: business ownership is the greatest equalizer in wealth disparity. The three primary obstacles facing these entrepreneurs are the wealth gap, the credit gap, and the trust gap, which often work hand in hand to disenfranchise Black entrepreneurs and keep their businesses from reaching maturity. Many black businesses are also small businesses, which usually hire from the communities they serve and strengthen the communities that often need it. Entrepreneurship must be nurtured and supported because it’s the path to change that can transform an entire community.