In recent years, Wisconsin has seen massive spikes in business ownership among nonwhite entrepreneurs, yet the state continues to have an overall low number of businesses owned by people of color.
Wisconsin ranks 50th across states for the rate of business ownership among minorities. Businesses owned by people of color represent 10.9% of total businesses, despite people of color representing 19.2% of the state’s total population. Underrepresentation in business ownership is especially acute for Black and Latino owners.
These findings are among those compiled in a new report, “Business Owners of Color in Wisconsin: Representation, Profitability, and Growth,” which is part of the Wisconsin Economy Series of reports from Extension’s Community Economic Development Program. The report was produced by the Economic Development Administration University Center utilizing data from the U.S. Census Bureau.
Other findings from the Business Owners of Color in Wisconsin report include:
- Over 48,000 of Wisconsin’s businesses are owned by people of color, employing nearly 55,000 workers and contributing over $1.6 billion in payroll receipts;
- Wisconsin follows the nationwide trend of a relatively small yet growing number of diverse business owners; and
- Business owners of color face challenges due to access to capital, sectoral distribution, physical location, as well as the size and maturity of their businesses, among other factors.
Research suggests that business owners of color can be supported through strategies that address funding and financing, supply chain diversification, as well as education and mentorship. To read the full report and related policy brief, click here.
