Improving the Financial Strength of Black Small Business Owners

Aug 25, 2022 1:45 PM ET

The Mastercard Center for Inclusive Growth

As we celebrate Black Business Month, we recognize the important role black-owned businesses play in supporting the U.S. economy. At the same time, we also acknowledge the hurdles that many Black entrepreneurs, especially small business owners, face in getting the financial support they need to grow and thrive.

Studies show that a majority of Black small business owners use personal credit to finance their businesses, resulting in income loss and financial hardships.

Lacking access to traditional financial services and discouraged from often-rejected loans, many small business owners seek out risky, high-cost financing alternatives—such as payday loans and check-cashing facilities.

To help ensure greater wealth-building and financial stability, small business owners, especially minority-owned entrepreneurs, need and deserve a better and trusted solution.

Our research points to 3 critical features that governments should include in their financial assistance programs to improve the financial strength of minority-owned small businesses.

Revisit this article by Center SVP Salah Goss and Director of the Social Policy Institute at Washington University in St. Louis Michal Grinstein-Weiss to learn more.

About The Mastercard Center for Inclusive Growth

The Mastercard Center for Inclusive Growth focuses on promoting equitable and sustainable economic growth and financial inclusion around the world. As an independent Mastercard subsidiary, it combines data, expertise and technology with philanthropic investments to empower a community of thinkers, leaders and innovators on the frontlines of inclusive growth. Follow us on Twitter @CNTR4growth and subscribe to receive our latest insights.

Originally published by The Mastercard Center for Inclusive Growth

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