3 minute read 24 Nov 2020
Cerrado signal in a door

The outsized impact of Black and Latinx entrepreneurs

By Nit Reeder

EY Americas Markets Communications and Enablement Leader; EY Entrepreneurs Access Network Program Director

Energetic and ambitious marketing, communications and creative leader. Believes in driving change by thinking big. An ally to entrepreneurs via a passion for teaming and leaning in.

3 minute read 24 Nov 2020

By helping Black and Latinx entrepreneurs today, we’ll be taking a giant step toward a tomorrow in which everyone has an opportunity to thrive.

Black and Latinx entrepreneurs are a major economic force. From mom and pop shops to multimillion-dollar enterprises, minority-owned businesses generated close to $700B1 in revenue last year. Over the past decade, Black- and Latinx-led companies started more than 1M new businesses across the United States, leading to millions of net-new jobs. 

These dynamic Black and Latinx entrepreneurs are inspirational leaders. They defy systemic financial and institutional barriers to achieve their dreams. These trailblazers meet market needs, create their own destiny and help their communities thrive.

But too often their stories and economic contributions are not celebrated as they should be.

Let’s fix that and recognize the might of minority business leaders in the U.S. today – as well as the inequitable challenges they face.

Did you know …

Latinx entrepreneurs are leading the way. Over the past ten years, the total number of Latinx-owned business owners grew by 34%2 – outpacing any other ethnic group. More than 40% of Latinx entrepreneurs are millennials, and Latina women start businesses at five times the rate of their male counterparts (Who run the world? Girls!). Consider the grit and tenacity of these Latinx leaders, who strike out to be their own boss while paving the way for generations to come.

Black-owned businesses give back. Black entrepreneurs have 12 times more net worth3 than peers who work for an employer. Their donations of time, money and services4 further strengthen neighborhoods nationwide. They provide strength in numbers and power to the community.

Atlanta has the second-highest number of Black-owned businesses in the country (trailing only New York City). Nearly one-in-three Atlanta businesses are Black-owned. The city is routinely ranked as one of the nation’s top-10 for minority entrepreneurs5, with several local organizations committed to supporting these leaders. As a recent example, the Metro Atlanta Chamber of Commerce helped establish the Restore ATL fund, providing financial support to Black-owned businesses impacted by COVID-19.

COVID-19 has had an outsized impact on Black and Latinx-led companies. Minority-owned businesses are closing at a significantly higher6 rate due to the pandemic. Since the onset of COVID-19 in the U.S., data shows 41% of Black-owned business, 32% of Latinx-owned businesses and 26% of Asian-owned businesses have closed. The ripple effect of those closures is devastating. It delivers a crushing blow to the communities where those employees live and work. We can’t continue to let this happen.

We can be advocates for minority business survival! These entrepreneurs make significant contributions to our economy but are not always recognized as they should be. Help us change that disparity. Whether you run a company seeking vendors or are a consumer seeking a purchase, use your buying power to intentionally support Black- and/or Latinx-owned businesses. Share your support by encouraging your colleagues, professional and social networks to do the same.

Supporting these entrepreneurs means supporting our communities. Because by joining together to help Black and Latino entrepreneurs survive today, we’ll be taking a giant step toward securing a tomorrow in which everyone has an equal opportunity to thrive.

Summary

Over the past decade, Black- and Latino-led companies started more than one million new businesses across the United States, leading to millions of net-new jobs. But too often their stories and economic contributions are not celebrated as they should be.

About this article

By Nit Reeder

EY Americas Markets Communications and Enablement Leader; EY Entrepreneurs Access Network Program Director

Energetic and ambitious marketing, communications and creative leader. Believes in driving change by thinking big. An ally to entrepreneurs via a passion for teaming and leaning in.