Black Business Ownership Exploded From 2017 To 2018
Being a black entrepreneur has become more and more appealing as people of color come forward about some of their struggles in the professional world, and this is reflected in a recent survey covered by Black Enterprise. According to the Minority 2018 Small Business Trends survey, the number of black-owned small businesses in the U.S. has increased by a massive 400% since last year.
To reach its findings, the survey, conducted by Guidant Financial and Lending Club, brought together over 2,600 business owners and aspiring entrepreneurs. Its findings showed that 45% of all small businesses nationwide were owned by ethnic minorities in 2018. To put this in perspective, in 2015, the total percentage was only 15%. The largest minority group of respondents were African American at 19%, followed by Hispanic at 14%, Asian at 8%, and Native American at 4%.
The breakdown of black small business owners was 63% as men and 38% percent women, with the bulk of them falling between ages 40 and 49. Most of them lived in Texas, but other states with high rankings included Georgia, California, Florida, and North Carolina.
David Nilssen, CEO of Guidant Financial, said in a statement that he is excited about the rise of minority small business owners around the nation. “Growth amongst all minorities including women is promising in America as small business ownership becomes more favorable and easier to attain. We anticipate and hope to see a continued increase as the impact of tax reform and economic growth shape small business ownership moving forward.”
So how could so much change so fast? According to the survey, 62% of black people interviewed said they chose to start a business to pursue their passion. Other key purposes included being their own boss, launching a startup due to opportunity, as well as dissatisfaction from working in corporate America.
However, while working for one’s self served as a great opportunity, many people also felt that there were issues here as well. 80%, said lack of capital was the most challenging aspect of running a business. 70% of businesspeople surveyed had to finance their own companies in cash.
Read more from Black Enterprise at: http://www.blackenterprise.com/black-business-ownership-400-year/