The Racial Wealth Gap: Narrowing the Racial Wealth Gap through Business Ownership

Joyce Klein and Jenna Liang

While business ownership is seen as a vehicle for wealth building, research from the Asset Funders Network finds that Latino and African American business owners are frequently excluded from this opportunity. With lower levels of family wealth to invest, lower levels of experience in family-owned businesses, and limited access to markets, the wealth gap continues. To reduce disparities, the Asset Funders Network calls on philanthropic funders to direct investment toward cooperatively owned businesses and CDFIs and to support policy efforts that direct public resources and contracting opportunities to CDFIs and business owned by people of color.

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