Because business ownership has been a means for many Americans to build wealth, providing loans and grants to entrepreneurs of color has been seen by many as an important way to address the racial wealth gap. Although successfully reaching excluded entrepreneurs will require practices and competencies that meet their specific contexts, the lessons we have learned and practices that have proven successful will apply to all entrepreneurs who face barriers in accessing credit because of low levels of wealth, thin or nonexistent credit files, differences in cultural experiences and languages, discrimination, and/or the amount of credit they are seeking. This brief — the first in a series on this topic — discusses the core operational challenges that community development financial institutions (CDFIs) face in scaling their lending to entrepreneurs of color.
Resource Category: Minorities
Most Nonemployer Businesses Owned by U.S.-Born But Foreign-Born Hispanic and Asian Owners Had a Large Presence in Some Sectors
Most U.S. business owners with no employees were U.S.-born but in some sectors and demographic groups, including Asian and Hispanic populations, more business owners were foreign-born. About 77.9% of owners of nonemployer businesses — firms that do not have paid employees — were native-born and 22.1% were born outside of the country, according to the
Building Organizational Capabilities in Service of Equitable and Inclusive Small Business Ecosystems
Small businesses are the beating heart of local economies and communities across the country. As mainstays of neighborhood identity, small businesses1 strengthen community pride and connections among residents. Small businesses also serve as a significant employment engine, driving approximately two-thirds of job growth nationally over the last two decades. A focus on small business development
The economic state of Black America: What is and what could be
Dismantling the barriers that have kept Black Americans from fully participating in the US economy could unleash a tremendous wave of growth, dynamism, and productivity. This research identifies critical gaps Black Americans face in their roles as workers, business owners, savers and investors, consumers, and residents served by public programs. Addressing wage gaps alone presents
PPP Loans Marred by Racial Disparities
An analysis of Paycheck Protection Program lending reveals stark disparities across the country. In the LA area, businesses in White neighborhoods received loans at a far higher rate than in Latinx, Black and Asian ones.
2021 Report on Firms Owned by BIPOC
The COVID-19 pandemic has deeply impacted communities of color and small busi- nesses of color, in many cases to a greater extent than their white counterparts. Prior to the pandemic, small businesses owned by people of color, in aggregate, faced greater challenges than white-owned firms The 2020 Small Business Credit Survey (SBCS) provides evidence that the pandemic exacerbated those challenges, an important finding as those businesses continue to weather the impact of the COVID-19 pandemic.
Promoting Racial Equity through Taxes
Legacies of historical racist policies and ongoing discrimination in areas such as education, employment, and housing have barred many Californians of color from economic opportunities. As a result, Californians of color — particularly Black, Latinx, and American Indian Californians — are less likely to have high incomes and to have built enough wealth to be able to weather periods of income loss, retire comfortably, and pass on wealth to their children. These barriers have also made Californians of color more likely to have experienced health and economic consequences of the COVID-19 crisis. One area policymakers should consider in efforts to address these inequities is the state’s tax and revenue policies. Although these policies may appear race-neutral, they can play a significant role in either worsening existing racial and ethnic income and wealth disparities or promoting greater equity for Californians. A policy need not be explicitly racist in order to have racially inequitable outcomes.1 Because many current state tax policies privilege Californians with higher incomes and wealth, they widen existing racial inequities. Policymakers can also use tax policy as a tool to promote racial equity, both by making the tax code itself more equitable, and by raising revenue to invest in the social and economic well-being of Californians of color.
Wealth Equity & Employee Ownership
Drawing on recent research, this issue brief – co-authored by the Aspen Institute Economic Opportunities Program, the Institute for the Study of Employee Ownership and Profit Sharing at Rutgers School of Management and Labor Relations, and the Democracy at Work Institute – makes a case for why policymakers, funders, and investors who care about racial and gender wealth equity should support employee share ownership. Informed by a roundtable discussion which brought together researchers, philanthropic leaders, investors, policy experts, and advocates, the paper provides a set of concrete policy and practice ideas to expand employee ownership and advance equity and economic justice. We hope this paper contributes to a broader collaborative effort to spread employee share ownership policies and practices that support economic recovery and lay the foundation for a more equitable and resilient economy.
1 Million Black Businesses Survey
HOPE and SurveyMonkey released the findings of the inaugural HOPE Minority Small Business Index survey which examines the sentiments and attitudes of aspiring and established Black business owners. Our inaugural survey, the first of its kind, demonstrates a high level of resiliency on the part of African American business owners.
Policy Priorities of Biz Owners of Color
As the pandemic disproportionately affects small businesses and communities of color, the new administration and Congress are currently debating a range of policy responses. Yet there is a gap in available data reflecting absolute and relative experience and policy preferences of AAPI-, Black-, Hispanic- and Native-owned small businesses. Reimagine Main Street fielded a national survey of small business owners from January 7-27, 2021 to provide timely insight into issue priorities and policy preferences of samples of AAPI-, Black-, Hispanic-, and White-owned businesses.