Black entrepreneurship has skyrocketed from the 1970s to today, yet business-generated PRODUCTIVITY outcomes have been meager despite high growth ACTIVITY. Today, Census data show that all Black-owned businesses nationwide produce less than 1% of GDP. Black EMPLOYERS represent a mere 2% of the employer Landscape nationwide.
Recent studies found that for every percentage point increase in the rate of entrepreneurship in a state, there is a 2 percent decline in the state’s poverty rate.
Separately, the Aspen Institute followed low-income individuals running micro businesses for five years and found that 72 percent of these entrepreneurs increased their household income over five years (the average increase was $8,484), enough to move 53 percent of these entrepreneurs out of poverty. Because of these household gains, they were able to diminish their dependence on public assistance programs by 61 percent on average.