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Re-Examining Entrepreneurship Support Structures to Improve Outcomes for Under-Served Entrepreneurs

July 18, 2017

Despite decades-long efforts from governments, non-profits, and their philanthropic funders to affect change through entrepreneurship support organizations (ESOs), job-creating entrepreneurship has steadily declined, millennials aren’t starting new businesses, and huge gaps still exist between business outcomes for companies owned by white men and those owned by women and/or minorities. While entrepreneurship participation among minority groups, most notably black women, is growing at a higher rate than for white males, business success for companies owned by minorities, both male and female, continues to lag far behind that of companies owned by whites (inclusive of data for both sexes). White-owned businesses average seven and a half times the gross receipts of minorityowned businesses4 and minority-owned firms are more likely to be turned down for business loans (even when controlling for attractiveness factors of the application, like credit score) and receive only 1% of all venture capital funding.

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Re-Examining Entrepreneurship Support Structures to Improve Outcomes for Under-Served Entrepreneurs