Entrepreneurs of color have less access to equity capital compared to white entrepreneurs, with 80 percent of the needs of black and Latinx entrepreneurs in Chicago unmet, compared to 46 percent of white-owned businesses. A report from Next Street quantifies the scope of this gap in Chicago, and identifies some of the barriers to investment, including limited access to networks, lack of funds from “friends and family,” and programs and training that are not connected to financing services. The report, supported through Arc Chicago, LLC (the fund established by MacArthur for the Benefit Chicago initiative), identifies some solutions, including tailoring products to business owner’s needs; embedding providers in local communities; considering community impact; and adding value-add services to connect entrepreneurs to mentorship, training, and networks.
