The Bottom Line
In reviewing these statistics on Black-owned businesses, we can see that such businesses are at a distinct disadvantage when compared to white-owned counterparts in the United States. Financial institutions grant them loans less frequently and, when they do, they’re often for lower amounts and higher interest rates. This may be one contributing factor to why Black-owned businesses tend to be smaller and employ fewer people than those owned by white people.
Despite the grim tidings of the racial funding gap, however, there are encouraging signs for the growth of the Black business community, particularly when surveying the success of Black women business owners.