Can ~100% More Ventures In Majority Black Areas Lead To Faster Economic Development?
August 8, 2022
The good news: More entrepreneurs are starting ventures in majority black areas, according to a study by the Alliance for Entrepreneurial Equity. The study found a marked surge in entrepreneurial activity in areas with a majority of black residents. New business applications in majority black areas increased by 103% from 2019 to 2021 compared to 54% nationally, and were about 3.5 times higher in 2005.
The study gives a number of reasons for this trend, including:
- More government financing
- Greater necessity, even with pandemic relief