According to BCT Partners, 65 percent of black businesses face obstacles in obtaining credit to grow their business. In addition, they are three times more likely to have profits negatively impacted by access to capital than whites.
What is more, according to the 2016 U.S. Census Bureau, the median household income for black families is $37,000, and for white families, $63,000. Entrepreneurship is often viewed as one of the channels of building wealth and a potential tool to alleviate inequalities.
However, access to capital is important in business formation. For many potential Black entrepreneurs, lack of access to capital is often the most difficult thing. Some overcome this challenge by relying on their savings while others borrow from family and friends.
Below are four Black entrepreneurs who took loans to start their business empires.