Minority entrepreneurship in the United States information
Minority entrepreneurship refers to entrepreneurial activity (new business creation) by individuals who belong to a minority group. In the United States, minority groups often include people who identify as African American, Hispanic, or indigenous; these social groups do not own businesses at a rate commensurate to their share of the population. For example, African American-owned businesses comprise 2.3% of businesses in 2022 even though African Americans are 14.2% of the American population. [1] One explanation for this discrepancy is the history and persistence of discriminatory economic practices that result in a disparity in credit scores between white Americans and minority groups. [2] The inequity in creditworthiness begins with redlining, but modern challenges to minority entrepreneurship also include corporate consolidation and an unrepresentative venture capital industry. There have been recent efforts to bolster minority entrepreneurs, often through startup incubators and minority-focused venture capital.
^Perry, Andre (February 14, 2022). "Black-owned businesses in U.S. cities: The challenges, solutions, and opportunities for prosperity". Brookings Institution.
^"Analysis of Differences between Consumer-and Creditor-Purchased Credit Scores" (PDF). Consumer Protection Financial Bureau. September 2012.
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