Wealth Gap - The State of Entrepreneurship
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The American Express 2019 State of Women-Owned Businesses Report
African-American businesses owned by women in this report earned an average of $24,000 per firm vs. $142,900 among all women-owned businesses. This gap, says the report, is “the greatest of any minority [group].
Fewer African-American small businesses are approved for financing, often at lower amounts of money with higher interest rates, according to a report in The Washington Post.
According to Project Diane, since 2009, Black women–led startups have raised $289MM in venture/angel funding. This represents .0006% of the $424.7 billion in total tech venture funding raised since 2009. Simply put, for every $100,000 in venture funds raised, $60 went to black women-led startups.
Black-owned businesses are significantly more likely to face financial challenges than white-owned firms and have a harder time obtaining credit even when compared to white business owners with similar performance profiles and credit risks.
Federal Reserve Bank Report