A new study by Lendio has ranked Maryland as the second-best state in the country for minority entrepreneurs to succeed. (Hawaii was first and Montana was last.)
The study looked at a myriad of factors, including income inequality through Census data, the Black-white unemployment rate ratio, the minority business ownership rate measured as the share of businesses owned by a person of color, new businesses (under two years old) that are owned by minorities, the percentage change in the number of Community Advantage loan approvals, and Community Reinvestment Act loan sums for small business owners with revenues of $1 million or less.
In Maryland, 24% of businesses are minority-owned, according to the study. And when it comes to startups, nearly 30% of them are minority-owned. In addition, the job growth at minority-owned businesses in Maryland is 59%.
The study also revealed that the number of businesses owned by Black, Hispanic and Asian American people has reached a record high — about 1.2 million in 2020, which is up more than 50% compared to 2007.Still, people of color make up 40% of the population but only own 20% of U.S. businesses.