COVID-19 IMPACT

Covid-19 significantly disrupted Black businesses, putting further strain on Black entrepreneurs, forcing many businesses to close for what may be permanently

An estimated 25-41% of Black businesses have already closed nationally

White firms were 8.5x more likely to have been approved for PPP loans

Black firms who applied for PPP loans received $30K less than White firms at roughly 1.4% higher interest rates, on average

Source: Small Business Administration; McKinsey & Company; African American Chamber of Commerce

A BOLD CHANGE IS NEEDED TO SUPPORT MBE’S


WHAT WE’VE SEEN:

1%

Following the murder of George Floyd, American companies have pledged $50B to racial equity, but just $250M, less than 1%, has been distributed so far

-20%

US tech companies that made statements of solidarity had 20% fewer Black employees on average than those that didn’t in 2021


1.6T

Size of the potential GDP impact if Black employer firms nationally were to achieve parity in representation and per-firm revenue with White peers

Source: McKinsey & Company; Creative Investment Research

CINCINNATI MBEs HAVE ALSO STRUGGLED WITH THIS REALITY, BUT THERE IS A UNIQUE OPPORTUNITY LOCALLY TO CREATE LASTING CHANGE

  • An estimated 30% of Cincinnati MBEs have closed and another 40% indicate they are at risk of closing due to stay at home orders


  • 97% of Black businesses in the region are solopreneurs and do not provide employment


  • Despite being 42% of Cincinnati’s population, less than 4% of firms are Black-owned and just 12% are in high-wage sectors


WHY THIS? WHY NOW?

Cincinnati has a strong organization ecosystem today, led the AACC, Urban League, and Cincinnati Chamber Minority Business Accelerator

Today, Cincinnati MBE’s offer $1.44B in total economic output, supporting 8,682 jobs with $542 million in earnings

There are 8x fewer Black businesses per 1,000 Black residents as there are White businesses, meaning potential for growth exists

Source: African American Chamber of Commerce; University of Cincinnati, Economics Center for Education & Research