Many Black People & Millennial Women Are Building Businesses – Here’s Why

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By Victor Trammell

Nowadays in America, the entrepreneurial spirit lives within a more diverse group of people than it did in previous decades.

For a long time, white males represented nearly the totality of all America’s entrepreneurs and business owners. However, the U.S. Census Bureau released data in September 2016, which showed the prelude to a paradigm shift among the demographic of today’s business people.

In a June 8th online article from Forbes Magazine, writer Anna Johansson  gives a further elaboration of the data published in the U.S. Census Bureau’s 2016 report about entrepreneurship. Johansson also references a substantive annual report by the Kaufman Foundation.

In the U.S. Census Bureau’s report, a baseline for progressive entrepreneurship was given, which explained the state of diversity among America’s business people as of late 2014.

“At the end of 2014 there were 5.4 million businesses, and only 17.5%  of them qualified as minority-owned—even though African-American, Latino, Asian, and other minority populations represent more than 38% of our country,” Johansson wrote.

“Women-owned businesses accounted for 19.4% of all businesses—even though women make up just over half of the country,” she continued.

But the Kaufman Foundation’s annual report for 2016 showed a major two-year turnaround. There was a sharp increase in entrepreneurship by a more diverse demographic group, which included millennial women and black people.

“According to the report, 40.6% of new businesses are started by women—a huge improvement over the 19.4% average rate of women business owners. Latino-owned businesses are also on the rise, with Latino business owners accounting for 20.8% of all new entrepreneurs—more than double the rate back in 1996,” Johansson also wrote.

A good reason for the rise in entrepreneurship among Americans who are not white males is the prevalence of millennials (particularly black millennial women) dealing with a major dissatisfaction with the traditional workplace.

Also, older white American businessmen have been historically reluctant to embrace diversity as a priority for their companies. The millennial generation, on the other hand, desires diversity because they are the most diverse demographic in America.

[Today’s millennials are] the most diverse generation in history, with 43% of the millennial population being non-white,” Johansson added. Socio-economic revolutions usually always happen when underrepresented demographics within a society independently become the change they want to see.

Furthermore, the desire to see a more diverse and inclusive business-owning population is surely revolutionizing the way business is done in today’s more globalized world.

Source 1: https://www.census.gov/newsroom/press-releases/2016/cb16-148.html

Source 2: https://www.forbes.com/sites/annajohansson/2017/06/08/why-so-many-millennial-women-and-people-of-color-are-becoming-entrepreneurs/?ss=nostream-one&nowelcome&utm_source=FBPAGE&utm_medium=social&utm_content=931488806&utm_campaign=sprinklrForbesWoman#499ee5e5332c

Source 3: file:///C:/Users/Tales/Downloads/kauffman_index_startup_activity_metro_trends_2016.pdf

Source 4: http://www.nbcnews.com/news/latino/millennials-most-racially-diverse-generation-u-s-history-n46361

 

 

 

 

 

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