Senior Research Fellow Algernon Austin highlights findings from his report, “The Color of Entrepreneurship“:

People of color are indeed interested in being entrepreneurs. In fact, when one looks only at businesses without employees, women of color are more likely to be entrepreneurs than white women. The problem for people of color is growing their businesses up to the size that they need to hire employees.

The major problem for people of color is access to capital. It takes wealth to build wealth. America has had a long history of stripping and suppressing wealth creation among people of color. American Indian wealth was taken and transformed into white wealth. African Americans have been subject to slavery, Jim Crow and de facto exclusion from the GI Bill and other policies that helped whites obtain homes and move into the middle class in the 20th century.