Employee Benefits Offered by Entrepreneurs of Color
Prosperity Now
First published November 2023
This report presents an analysis of employee benefits provision among Hispanic, Black, and White business owners. Leveraging data from the 2022 Entrepreneurship in the Population Survey Project (EPOP), the study exclusively focuses on businesses employing more than 10 individuals to delve deeper into the benefits landscape.
The data unveils a somewhat surprising narrative, challenging preconceived notions about the financial capacity of businesses owned by entrepreneurs of color to provide employee benefits. Contrary to
expectations, Hispanic and Black business owners exhibit high rates of offering some form of employee
benefits. Almost all Hispanic-owned businesses and a significant proportion of Black-owned businesses
provide benefits, showcasing a dedication to their employees’ well-being that rivals and, in some cases,
surpasses that of their White counterparts.
While there is a general consistency across racial and ethnic groups in the provision of benefits, disparities
become apparent when delving into specific types of benefits. Hispanic employers, for example, lead
in health insurance provisions. Through regression analyses, the research shows that the business
context, including the type of employees hired and the financial challenges encountered, also influence
these provisions.
This report offers a snapshot of the current state of employee benefits provision among diverse business
owners. It is important to note that the study focuses on whether benefits are provided, rather than the
quality or comprehensiveness of these benefits. Future research should delve into the quality and scope
of benefits offered, providing a more nuanced understanding of employee welfare across different
business demographics. This would ensure a holistic view, enabling stakeholders to identify gaps and
areas for improvement.