SPRINGFIELD, Mass. (WWLP) – A recent report found that Massachusetts must increase entrepreneurship among people of color for a more successful economy.
While minority businesses are growing, white residents are still 2.5 times more likely to own a business than black residents.
A report by MassINC and the coalition for an equitable economy concluded that the state needs to increase entrepreneurship among people of color to counteract a decades long decline in the number of new businesses.
Between 2005 and 2018, the number of new Massachusetts companies with employees formed annually, dropped by 47-percent. Minority-owned businesses are growing, but not at a fast enough pace to achieve equal representation. The report says entrepreneurs of color face greater obstacles in getting bank loans, or knowing about funding opportunities, increasing the field will benefit the economy.
“It’s a benefit for the economy because we all win. We all win because if these businesses are viable, it helps us with our taxes, we can see different improvements from our educational systems to different things that can happen within our cities.” Dr. Shakenna Williams, Director of Global Initiatives for Babson College Center for Women’s Entrepreneurial Leadership
An American Express report found that if black women are given the equal access to capital, entrepreneurship education and expansive network there would be an increase in the U.S. of $981 billion in revenue, and 4-million new jobs.
A bill filed in the state house would establish a new grant program aimed at creating or strengthening business districts in communities of color.