There is strong evidence that black-owned businesses fail more often than white businesses, causing lenders to back off financing black-owned businesses.

Question

Quizplus · Accepted Answer

Studies have shown that the higher failure rate of black-owned businesses is often due to systemic issues such as lack of access to capital, markets, and resources rather than the inherent viability of the businesses themselves. Lenders' hesitancy to finance black-owned businesses can perpetuate a cycle of underfunding, not necessarily a reflection of the businesses' potential for success.

There Is Strong Evidence That Black-Owned Businesses Fail More Often