Revenue Gap Between Black and White Businesses Leaving Hundreds of Billions on the Table
One key economic area where inequality between Black and white Americans has manifested is in business ownership and performance. A 2020 McKinsey report cited by the NAACP shows that closing the gap in revenue earned by Black- and white-owned businesses would generate an additional $290 billion for the U.S. economy. A new report out this month from The Brookings Institution illustrates this concept at the metropolitan level, presenting the revenue, jobs and wages that would be created if the share of Black-owned businesses in a metro area were on par with its Black population. Knowing the pandemic has only exacerbated challenges facing Black-owned businesses, the opportunity now is even greater for business and policy leaders to create positive economic impact through targeted policies and investments that support Black businesses, business owners and entrepreneurs.