When you think of a successful entrepreneur, what image comes to mind? Do you think of an individual of a certain age, gender, or ethnic background? If so, that could be due to implicit bias because research supports the significance of diversity in entrepreneurship.
When people from diverse backgrounds and perspectives are building successful businesses to solve relevant problems there are significant economic advantages. For instance, in the Minneapolis metro alone, increasing the number of businesses owned by people of color could add as many as 87,000 new jobs to the region.
But is there a level playing field for people of all backgrounds who want to launch and run their own business? Let’s see what the research has to say.
For example, it’s no secret that small business owners have been severely impacted by the economic fallout from COVID-19. But The Small Business Administration has reported that minority business owners may not have received critical funding from the Paycheck Protection Program, which would negatively impact one’s ability to keep their business afloat regardless of their work ethic or other personal traits.
Want to educate yourself to better support and/or build more diverse businesses? Check out these stats to better understand the gaps that can impact success between different demographic groups of entrepreneurs.
7. Half of all women-owned businesses are in the following three categories: personal services, healthcare, and social assistance, and professional and technical services.
8. The growth rate in the number of women-owned firms between 2014 and 2019 increased the most for these five industries: utilities (160%), construction (68%), information (36%), other services (29%), and arts, entertainment, and recreation (23%).