Giving Compass' Take:
- In this article from Brookings, research shows that fueling Black businesses is necessary to rebuild and expand our economy.
- How can we support more business leaders and entrepreneurs of color? In what ways are we making progress for more equity in the capital markets, and what gaps remain?
- Here's how to support entrepreneurs of color during the coronavirus.
What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
For the descendants of enslaved Africans in the United States, entrepreneurship represents more than just owning a business and pursuing the proverbial American Dream. Instead, the ability for Black people to participate in local, regional, and global markets represents a dream deferred by systemic racism and discrimination. Consequently, an analysis of Black business ownership can offer insight into the degree to which America is truly the land of opportunity.
Inspired by the work of the Path to 15|55 initiative, this research explores the state of Black-owned employer businesses (hereafter referred to as Black businesses). Using the Census Bureau’s 2017 Annual Business Survey (ABS), which replaced the Survey of Business Owners (SBO), we analyzed data at the national and metropolitan levels to compare Black and non-Black businesses.
The purpose of this research is to provide the empirical context that will make way toward a set of business development goals. Future goals will provide a shared vision among key players that can drive capital to Black entrepreneurs to start, maintain, and grow their businesses. This includes capital from corporations and philanthropies, support from political leaders, investment and products from financial institutions, and venture and startup capital investment from high-net-worth individuals. The potential economic and social returns that strategic investments in Black businesses can have for individual business owners, local communities, and the overall economy warrant an analysis.
Read the full article about expanding the economy through Black businesses by Andre M. Perry and Carl Romer at Brookings.