Black Asian Latino Economic Gap $16 Trillion
Updated: Feb 28
Today, large emerging markets such as China, India and Africa continue to accelerate growth with greater economic prosperity and robust innovation in healthcare, technology, aerospace, manufacturing, agriculture and finance. By 2023, the global population saturation point beyond 8 Billion people will propel these large emerging markets such as China (1.3B) and India (1.2B) toward a technological quantum leap for the next 25 years. So, America needs everyone of it's 311 Million citizens to reach maximum potential and generate innovation in order to compete in the future, particularly as technology has leveled the economic playing field, even for countries like Indonesian (246M) and Brazil (205M) now.
Sadly today, just four (4) out of all Fortune 500 companies has a Black CEO in the leadership position. So, America is doing a poor job at equally maximizing every citizen's potential. Research shows the U.S. has lost $16 Trillion in economic productivity and innovation in the last 20 years, due to racial inequality and wealth gaps for Hispanic, Black and Asian demographics being denied equal wages, high quality education, home ownership financing investment and small business access to venture capital reports BrightNovaMedia.com. The U.S. must correct inequities quickly in order to compete long-term, otherwise it will no longer be a global leader.
The Inconvenient Truth. Historically efforts by Black Americans to build wealth can be traced back. But these efforts have been systematically impeded in a host of ways, beginning with 246 years of chattel slavery and followed by Congressional mismanagement of the Freedman’s Savings Bank (which left 61,144 Black depositors with losses of nearly $3 million in 1874), the violent massacre of nearly 300 Blacks decimating Tulsa’s Greenwood District in 1921 (a population of 10,000 that thrived as the epicenter of African American business and culture, commonly referred to as “Black Wall Street”), and discriminatory policies throughout the 20th century including the Jim Crow Era’s “Black Codes” strictly limiting opportunity in many southern states, the GI bill, the New Deal’s Fair Labor Standards Act’s exemption of domestic agricultural and service occupations, and redlining. Wealth is taken from Black communities before it's able to grow (Brookings Institute Feb. 2020).
Blacks and those lacking resources experience poor education, inaccessible health care, big wage gaps, under-employment and the broken U.S. criminal justice system that denies equal rights and due process making it unaffordable. Blacks and those lacking resources become easy targets of widespread corruption such as coercive "charge stacking" to force spurious plea deals which occurs now in 97% of all criminal case, a shockingly high rate.
Why America Needs Black and Hispanic Small Business ...
Innovation is based upon bright ideas. The human mind thinks of new things that can better fulfill an existing need. So, the greater number of human minds i.e. greater the population, generally the greater the number of innovations. The economic playing field is now level with widespread technology applications equal among emerging markets and developed countries. This global "Technology Evolution" may provide an entrepreneur in Africa or India with nearly the same competitive economic opportunities as a person living in the USA.
Data shows emerging and developed countries pulling ahead of the United States now in many industrial and technology sectors. In fact, China, Europe and India have 4x the number of geniuses now producing innovation, compared to the United States.
America will be unable to compete in the technology evolution without much greater innovation. Therefore, every Black, Asian and Hispanic person in America must have the equal support, education, healthcare and small business financial capital available to propel their innovative new ideas and create new jobs in local communities for the U.S. to compete.
The success of minority small businesses in America should be considered a strategic national security priority reports BrightNovaMedia.com. Based on the number of innovations an estimate of just 6 Million "genius" level minds exits in America versus China's 14 Million vs India's 14 Million geniuses. A big problem facing the United States now.
The population numbers affect the number INNOVATIONS resulting in potential economic growth prosperity. Thus generally, less geniuses, means less economic innovation prosperity long-term, as the likely outcome reports BrightNovaMedia.com.
So, the United States must deploy an "all hands-on deck" approach now that lays the a top quality equal education and healthcare system in order to maximize the production of innovative new ideas that will propel America's future ability to compete globally able to remain a leading economic power. So, every Black, Asian and Hispanic in the United States should be given much greater access to small business funding capital to secure innovation.
Black and Hispanic families on-average hold $17,000 of wealth in America versus nearly $175,000 net worth on-average for Whites. And Black and Hispanics were 3x more likely to have severe health problems, lacking access to quality healthcare resources than Whites.
During COVID pandemic 2020 -2021, Black and Hispanic small business owners were particularly financially and health wise devastated by the loss of urban shopper foot traffic. In fact, nearly 40% of all Black and Hispanic owned small business closed lacking of capital.
Black and Hispanic small business owners are 3x less likely to get bank and/or capital finance approval versus White entrepreneurs. This has a great impact on local communities and neighborhoods ability to enjoy economic prosperity and create new high wage jobs. The denial of access to capital funding in many ethnic groups hurts local communities, as neighborhoods experience despair resulting in high poverty, crime and single parenting.
Despite all the challenges, there are 4.65 million Hispanic owned companies – representing 15% of the 33 million total U.S. businesses. The Hispanic entrepreneur business growth continues to vastly outpace that of other U.S. businesses. In fact, Hispanic businesses grew 40% from 2012 to 2018 – more than twice the 20% growth rate of other U.S. firms.
Hispanic owned businesses employ over 3 million U.S. workers. Fast growing Hispanic companies makeup nearly 15% of all businesses in America now.
Black Owned Business Statistics 2020 ...
Over 2.5 Million Black owned businesses exist in the United States 2020; but less than 200,000 of black owned businesses actually have employees due to lack of capital to grow
World Wide Technology is the largest Black-owned business in the country
Black owned businesses generated $150 billion in gross revenue annually
The most popular category for Black-owned businesses is health care
New York has the greatest number of Black-owned businesses in America
Washington, D.C. has the highest percentage of Black-owned businesses
75% of Black business owners are happy with their business
65% of Black business owners said their business financial health is “at risk” or “distressed” during the COVID-19 pandemic
Just 4% of startups are founded by Black women
35% of Black business owners are women
Businesses owned by Black women earn significantly less than businesses run by other women just $24,500 annually and nearly 35% less than others
40% of Black business owners start their businesses because they want to be their own bosses
50% of Black business owners use their own cash to start their venture
Black-owned businesses employ approximately 950,000 people
Just 7% of Black-owned employer firms have six to 10 employees, compared to a national average of 12%
Black business owners receive less business financing, less often, and at higher rates
45% of Black business owners say they are “discouraged” from applying for loans
Average level of startup capital for Black entrepreneurs is just $35,205
Just 1% of Black business owners obtain business loans in their first year.
Only 18% of Black business owners report receiving assistance from loan officers in completing business loan applications
Top 100 Black Owned Businesses in America ...
COMPANIES REVENUES ($M)
World Wide Technology Inc. 11,287
Act 1 Group 2,800
Bridgeman Foods 870
Urban One Inc. 440
Bird Electric 237
Diversant L.L.C. 190
Chemico L.L.C. 146
Epitec Inc. 98
MINACT Inc. 94
Harpo Inc. 72
In order to compete as a global leader over the next 25 years, America must immediately change the culture of it's economic and business model approach to include true equal opportunity, access to capital funding resources accelerating the pace of real innovation.
Allowing parents the ability to choose where their child attends school through "educational vouchers" of $8,500 annually will deliver higher quality education for Black and Hispanics.
Equal access to affordable healthcare and childcare services, and preventive healthcare that starts from an early age, upon birth to ensure over a lifetime, the well being of productive healthy individuals such as Black, Asian, Hispanic business owners and entrepreneurs.
Finally, the U.S. must facilitate the equal opportunity of home ownership through better mortgage and financial solutions for Black and Hispanic families to create wealth long-term.
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Bright Nova Media is a unique news and business channel. The content material is drawn from the interesting perspectives based on the 25 + years experience of Bright Nova, a character that explores relevant and informative topics of the day.