A new study from Lendio ranked Wisconsin the No. 4 worst state for minority entrepreneurs to succeed.
Currently, 1.2 million minority-owned businesses are operating nationwide, and 20% fail in the first year. Income inequality, limited access to loans, and other biases lead to a lack of capital needed to start businesses and survive the early years.
In Wisconsin, minorities own 6.6% of all businesses and 8.2% of startups under two years old.
The number of jobs at these companies grew by 63% from 2019–2021. The state distributes less business loans to underserved communities, at $254 per capita, compared to the national average of $351 per capita through the Federal Community Reinvestment Act.
Across the country from 2017–2020, companies started by minorities increased substantially: 64.8% for Native Americans, 28.8% for Pacific Islanders, 16.5% for Latinos, 13.6% for Blacks, and 10.2% for Asians; however, while 52% of business loans get fully approved for whites, that drops to 35% for Asians, 28% for Hispanics, and 27% for Blacks.
