About Us

Build Back Better for Entrepreneurs of Color

Who we are

The Building Back Better for Entrepreneurs of Color coalition engages policymakers on the unique challenges faced by entrepreneurs of color in accessing opportunity, funding, knowledge, and support at the federal level. Together we represent a powerful network of organizations and experts rooted in and driven by communities of color. We are working to shift the discourse on U.S. policies and ensure that our communities thrive. We have track records of joint federal advocacy efforts, and collectively advance strategies that elevate and center the voices and experiences of entrepreneurs of color. 

Who do we serve?

From the Big Tech firms to Main Street shops and restaurants, every business was a small business at the start. The ability to start and grow a business has been a pathway to economic prosperity for millions of Americans. Next to owning a home, business equity is the second largest source of wealth in the United States.

But starting and scaling a business without access to capital is challenging. This is especially true within communities of color, where many small business owners and micro-entrepreneurs need access to credit and trusted financial institutions.

Quick Facts About Entrepreneurs of Color

• According to the 2020 Annual Business Survey (ABS), businesses owned by people of color are underrepresented relative to their population size. For instance, Black people represent 13.4 percent of the  U.S. population, but Black-owned businesses make up 2.3 percent of the nation’s 5.7 million employer businesses. Similarly, Latinx people represent 18.5 percent of the U.S. population, but Latinx-owned businesses make up 6 percent of the nation’s employer businesses.

• Businesses owned by people of color are more susceptible to financial shocks, including the recent COVID-19 pandemic. Entrepreneurs of color reported experiencing greater financial hardship as a result of the pandemic than white entrepreneurs.   During the first four months of the pandemic, the number of Black business owners dropped by 19% and the number of Latino and Asian business owners dropped by 10% compared to only a 5% drop for white business owners. (Source: The impact of COVID‐19 on small business owners: Evidence from the first three months after widespread social‐distancing restrictions - Fairlie - 2020 - Journal of Economics & Management Strategy - Wiley Online Library)

Surveys have found large disparities between the ability of white-owned businesses and businesses owned by people of color when seeking credit. For example, the most recent survey found that Black-owned firms that applied for financing received the financing they sought at one-third the rate of white-owned firms, and Latino-owned and Asian-owned firms at 50% and 75%, respectively of the rate of white-owned firms. Even among firms with (self-reported) good credit scores, Black-owned firms were only half as likely as white-owned firms to receive the financing they sought. (Source: link to consortium of Federal Reserve Banks survey cited) 

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