Study Reports Maryland 2nd-Best for Minority Entrepreneurs

A study by Lendio released on June 12 reported Maryland is the second-best state in the country for minority entrepreneurship.

The study revealed Hawaii as the best and Montana as the worst. Delaware, neighboring Maryland, ranked fourth while Virginia came in eighth and the District, 17^th. Factors utilized for the study included income equality through Census data, the Black-white jobless rate ratio, the minority business ownership rate measured as the share of businesses owned by a person of color, new firms (under two years old) that are owned by minorities, the percentage change in the number of Community Advantage loan approvals and Community Reinvestment Act loan sums for small business owners with revenue of $1 million or less.

The study reported that in Maryland, 24% of businesses are minority-owned. Regarding startups, almost 30% of them are owned by people of color. Plus, the job growth at minority businesses is 59%, the study said.

Overall, the study reported the number of businesses owned by people of color reached a record high in 2020, 1.2 million. That makes up more than 50% compared to 2007. Nevertheless, minorities constitute 40% of the nation’s population but only 20% of its businesses.

“Not all business owners have equal opportunities to succeed,” the study said. “In particular, minority entrepreneurs face barriers in accessing the capital they need to start and grow their businesses — even in the top-ranked states.”

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