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Unequal access to capital

Study after study has shown how the racial wealth gap and implicit bias have limited access to capital for Black entrepreneurs. Building the supporting ecosystems to mitigate the institutional barriers that lead to less access to capital and dimmer prospects for business growth by Black-owned businesses is not easy. Even when controlling for factors such as “firm characteristics and performance,” Black-owned businesses are still 20 percent less likely than white-owned businesses to obtain a loan from a large bank.

Author David Baboolall and Earl Fitzhugh

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