The USA is one of the most ethnically diverse places in the western world. 42% of the country’s population are black, indigenous, or other people of color (BIPOC), and its major cities are a rich tapestry of intermingling cultures and languages.
So how does this diversity play out in economic terms? Well, unfortunately, it’s not great. Because despite making up almost half of the population, BIPOCs are severely underrepresented when it comes to business ownership; only 27% of American businesses belong to people who identify as BIPOC. And many of the largest and most diverse metro areas also have the lowest proportion of BIPOC businesses.
However, things are changing for the better. A recent report from Entrepreneurship Monitor found that an incredible 17% of black women are now in the process of starting a business. At the same time, there are a growing number of initiatives dedicated to helping BIPOCs transform their fledgling start-ups into successful companies.
But despite this additional support, there are still many challenges for aspiring BIPOC entrepreneurs and business owners, including location. In fact, as the following research from online small business lender OnDeck shows, where BIPOCs live has a significant influence on their likelihood of starting a new business.
OnDeck’s research, which includes data from the latest U.S. Business Census, identifies the biggest disparities between minority business owners and the minority population across the States. It also found the metro areas where BIPOC business owners are not just surviving, but thriving.
Find out where they are in the charts and graphs below.
