Topic: Advancing Black entrepreneurship amid a racial reckoning and a pandemi
Only 4% of Black-owned businesses in the U.S. survive past the startup stage, even though 20% of Black Americans start businesses, according to a 2020 report by McKinsey and Company, a management consulting company.
As the pandemic forced many businesses to close their doors, about 58% of Black-owned businesses in the US were at risk of financial สล็อตxo distress before the pandemic, compared with about 27% of white-owned businesses, with possibly up to 41% of Black-owned businesses closing between February and April 2020, according to the McKinsey report.
In another recent study by advocacy groups, Color of Change and The Main Street Alliance, 40% of Black businesses said they could only last another six months, compared with 55% of their white business owner counterparts.
Amid a pandemic and a national racial reckoning in the aftermath of the police killing of George Floyd, there is a lot of focus on Black economic empowerment and building generation wealth, particularly through launching Black-owned business, some of these advocate groups have said.
Yet, the challenges to start a Black-owned business can often seem insurmountable.
Black entrepreneurs start their businesses with about $ 35,000 of capital compared to their white counterparts who start at $ 107,000, according to McKinsey's report.
"Many Black businesses can't substantiate themselves because they are behind in an initial investment. We generally have less resources to lean on to start and sustain business in the critical phases," said Andre Perry, senior fellow at the Brookings Institution.