Business Statistics – In addition to the usual problems

In addition to the usual problems associated with running a business, black entrepreneurs also face a significant funding gap between white-owned and black-owned businesses. Black small business owners are more likely to use their own money to finance their businesses than the average small business owner. Thirty-four percent of black business owners start a business because they want to be their own boss. Fifty-eight percent of black business owners reported that the financial condition of their business was “threatened” or “disrupted” during the COVID-19 pandemic. In a study that estimated the number of black-owned businesses in all 50 states and the District of Columbia there were 204,093 black-owned businesses in New York City, the highest number in the country. Although black women are widely represented among business owners, they make surprisingly less money than other business owners. While most black business owners are happy, the COVID-19 pandemic has had a serious impact on the health of their businesses. Only 18 percent of black business owners say they get help from loan officers when completing loan applications. Forty-four percent of black small business owners use cash to start their businesses. Only 1 percent of black business owners get a business loan in the first year. The most common type of black business is health care, with 32 percent of black entrepreneurs in this category. Thirty-five percent of black business owners are women. Black business owners receive less financing, less often, and at higher rates.