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I think the most useful comparison would be to judge it against expenses, since not all businesses would need the same amount of loans. The closest related stat
by ewzimm 6y ago
I think the most useful comparison would be to judge it against expenses, since not all businesses would need the same amount of loans. The closest related statistic I could find is that all minority-owned businesses generate around 3% of revenue. The loans seem to have been given out fairly evenly as intended, but the small impact of black businesses on the economy seems like a much more significant disparity.
https://www.usnews.com/news/articles/2016-09-01/most-of-americas-businesses-run-by-white-men-says-census-bureau https://www.usnews.com/news/articles/2016-09-01/most-of-amer...
- TAForObvReasons 6y agoSo that raises its own set of interesting questions that hits at the core of the issues that the article discusses: why is it the case that 9.4% of businesses are black-owned yet only generate 3% of revenue? Are there issues with, say, obtaining a loan? Do they face challenges to growth that white-owned businesses do not? When fixated on the statistics, it's easy to forget the human questions around the disparity.
- ewzimm 6y agoAbsolutely, and that 3% is for all minority-owned businesses, not just black-owned. One large part of the problem is likely that the higher revenue industries are dominated by big businesses that shut out small businesses. Here’s an industry breakdown showing a very small representation in industries like information. https://blackdemographics.com/economics/black-owned-businesses/amp/ https://blackdemographics.com/economics/black-owned-business...