The United States is filled businesses run by entrepreneurs, Caucasians and minorities alike. However, there is a racial gap between Caucasian-owned businesses and those that are owned by minorities.
This racial discrimination is reportedly costing the United States billions of dollars, according to Fast Company. FC wrote that the minority businesses has the potential to boost the American economy by as much as $300 billion. However, the Center for Global Policy Solutions created a study titled "The Color of Entrepreneurship: Why the Racial Gap Among Firms Costs the U.S. Billions" that explains why America is bleeding money.
The study focused on business owners and entrepreneurs by race between 2007 and 2012. The results from the study showed that people of color have contributed to the economic recovery after the recession that started in 2007. The numbers showed that minority business owners were able to add 72.3 per cent of the jobs created by private companies. FC wrote that nearly all entrepreneur-of-color groups showed significant growth in the number of their firms, with Asian-American women-owned businesses taking the lead at 37.6 per cent growth. In addition, non-white business owners added more than 72.3 per cent of the jobs created by privately held companies.
The study detailed that discrimination is inhibiting the growth of these businesses. If racial discrimination were to be removed, the study claims that an additional 1.1 million businesses could be created and would provide about 9 million jobs. These numbers can increase the United State's income by $300 billion.
Aside from racial discrimination inhibiting the success, wealth is also a factor. The researchers encourages Americans to begin wealth building in communities of color. This can be done by instilling tax credits that will promote venture investments in minority businesses. Providing quality education could increase the chances of pushing disadvantaged minority groups to success.
