Black entrepreneurs have faced challenges in the past decade as their economic and political power has eroded.
They have struggled to secure funding for their businesses, access to credit, access into the broader economy and, in some cases, access even to their homes.
In addition, they’ve faced the loss of jobs.
Black entrepreneurs, like any other Americans, are expected to find work, but their economic opportunities have been diminished.
A report by the National Venture Capital Association found that Black entrepreneurs are underrepresented in the venture capital ecosystem.
While black entrepreneurs have been successful at securing funding for the past two decades, they have faced a range of challenges in that time.
While there is a clear and visible economic disparity between Black and white entrepreneurs, there is also a racial disparity.
Black people account for only 4 percent of the population but account for 22 percent of all venture capital investments.
In 2017, they accounted for more than one-third of venture capital funding, according to the National Alliance for the Advancement of Colored People.
“Black entrepreneurs face a significant economic and cultural inequality,” the report says.
“They face barriers to entry, and they are often disadvantaged by the absence of a robust pipeline of qualified Black business owners.”
The report identifies the three main barriers that Black people face: the lack of qualified black entrepreneurs and the lack and underrepresentation of Black women in the business world.
“This means that Black business women are less likely to get access to finance and investment opportunities, which in turn affects the ability of Black entrepreneurs to achieve their full potential and to make lasting, sustainable contributions to society,” the authors write.
“The lack of female and minority female entrepreneurs is particularly acute among the Black youth population.
This is particularly evident in rural areas where Black youth are disproportionately affected by poverty and lack of access to financial and education resources.”
In addition to these economic challenges, Black entrepreneurs lack the access to capital they need to grow and grow.
The National Venture Bank estimates that Black and other minority entrepreneurs have the highest risk of being shut out of venture funding, even as their risk of becoming the first to make money in a venture is much lower.
Black women are nearly three times more likely to fail in their ventures, according a 2016 study from the University of Michigan.
Black men, meanwhile, have lower risk of failure than Black women, according the report.
Black businesses and entrepreneurs often face discrimination and racial bias when applying for funding.
“African Americans are not only disproportionately represented in the criminal justice system, they are disproportionately represented as investors, venture capitalists, managers, board members, investors, and employees in minority-owned and minority-run enterprises, the report states.”
While many businesses that serve low-income Black and Latino communities are funded by private equity and other private investment firms, venture capital is predominantly held by Black and African American entrepreneurs,” the study continues.
Black entrepreneurship has been “generally excluded from many aspects of the venture capitalist ecosystem, and there are substantial barriers to entering the market, including the lack to access financing, the lack in access to qualified black business owners, and the underrepresentance of Black female entrepreneurs.”
The NVAAC report found that, overall, black entrepreneurs make up just 4 percent to 7 percent of venture capitalists.
However, their representation in venture capital pools has increased over the past 20 years.
In 2015, just 5 percent of Black venture capitalists were Black, according its data.
In 2016, that number jumped to 12 percent.
The findings come as President Donald Trump’s administration is considering more restrictive regulations on private equity. “
While many of these barriers have been addressed through legislation and policies, a significant portion of venture capitalist investment has been held by firms that operate in an environment that reinforces and reinforces the very biases that contributed to the exclusion of Black and black women from venture capital,” the NVAAP said.
The findings come as President Donald Trump’s administration is considering more restrictive regulations on private equity.
The administration has proposed several measures aimed at making venture capital more affordable and accessible to minority and women entrepreneurs.
However the White House has also proposed creating an advisory panel to advise the administration on the best way to expand investment in minority and female entrepreneurs.
The NVBA also recently released a report detailing the disparities in the number of venture funds for Black entrepreneurs and Black women.
According to the NVFA, there are nearly 1,000 Black women-owned venture funds that were created in 2017, and more than 500 Black women entrepreneurs in the U.S. that were founded in 2017.
“As a result of these investments, Black women have gained a disproportionate amount of venture and venture capital, and Black entrepreneurs who have received funding have made a disproportionate number of significant contributions to the American economy,” the document states.
“Many of these companies, and in many cases, these women, have been impacted by racial discrimination and unequal opportunity in their venture investments.”
Black entrepreneurs also face barriers when entering the workforce.
According the report, black women make up nearly three-quarters