SMALL BUSINESSES ARE THE KEY DRIVERS OF US ECONOMIC GROWTH
Source: Small Business Administration; US Census.
31M
small businesses operate
in the US today
60M
people are employed by those businesses, representing 47% of all US employees
YET MINORITY-FIRMS CONTINUE TO STRUGGLE.
Their progress stifled by systemic inequalities in access to capital and support.
58%
58% of Black business owners reported they were at risk of financial distress compared to just 27% of White firms
37x
The average minority-owned business has just $500 of outside equity compared to $18,500 for white owned firms, a 37x multiple
-4x
Hispanic and Black-owned businesses were three-to-four times less likely to have access to loan or other capital due to inability to meet diligence requirements
However, minority business enterprises are at the forefront of US small business growth, but the headlines are deceiving
- If Black-owned firms matched the average scale of their industry peers, they would add another $600 billion in revenue
- New MBEs start at 6x the national average and represent 50% of new firms over the last decade
- There are an estimated
~3.3M Black businesses in the US today, representing less than 10% of all firms
Source: McKinsey & Company; Wall Street Journal; Fortune; Minority Business Development Agency
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