My experience is not unique: According to the U.S. Bureau of Labor Statistics, more than 20% of businesses fail within a year, and that probability is even higher for black-owned businesses, with only about 4% surviving the startup stage, according to McKinsey & Company.
My struggle has led me to ponder what life would be like for people in the black community if more people had access to entrepreneurship courses and mentoring at a younger age.
As a new generation comes of age, there is growing interest in entrepreneurship as a path to financial independence. But the journey from great idea to sustainable business comes with many challenges, especially for communities of color who face systemic barriers to success. Teaching entrepreneurship in schools can have a game-changing impact and should be integrated into the curriculum.
I’ve seen the benefits firsthand. As a program manager at BUILD, a nonprofit that supports young people through entrepreneurial education, I’ve worked with educators to help young people in under-resourced communities develop their business ideas. Students learn skills like self-management, problem-solving, and understanding consumer research and financial reporting. Their ideas, which range from multicultural cookbooks to apps for reporting bullying, often address issues they see in their communities.
The number of Black-owned businesses is on the rise, nearly 60% of Black adults believe supporting Black-owned businesses is an effective way to achieve equality, and the hashtag #supportblackbusinesses remains prominent, serving as a rallying cry for reinvesting in historically disenfranchised communities.
During the height of segregation, black people were forced by necessity to open their own stores because others would not sell to black people. This led to a growth spurt in the early 1900s, known as the Golden Age of Black Business. During this time, our communities thrived thanks to entrepreneurial spirit. However, racism attempted to thwart this progress, as evidenced by events such as the Tulsa Race Massacre, when a mob attacked and destroyed Black Wall Street, one of the wealthiest black communities in the country at the time.
The massacre, which left hundreds dead and more than 1,250 homes burned, highlights the historical and systemic barriers black Americans faced to achieving wealth. After emancipation, formerly enslaved people faced significant challenges, including discrimination in education, employment, and the housing market, as well as access to financial institutions and credit.
Today, the gap in median household wealth between white and black families is more than $1 million, according to a report from the Urban Institute released this year. Meanwhile, a Brookings Institution study found that black people make up 14.2 percent of the U.S. population, but own just 2.4 percent of the nation’s businesses that employ employees. At the current ownership growth rate of 4.73 percent, it would take 256 years for the number of black businesses to equal the number of black people in America.
Closing this gap requires systemic solutions that combat the root causes of inequality. Entrepreneurship education in secondary schools gives students the knowledge and skills to start and manage businesses and empowers them to make informed financial decisions. This opens doors to economic opportunities they may not have had access to otherwise and helps leave a legacy of economic success for future generations.
Locally, organizations like BUILD are promoting entrepreneurial education in schools across Greater Boston, where students learn how to write business plans and pitch to potential funders while also receiving support with their academics and college planning. The international nonprofit Network for Teaching Entrepreneurship has programs in three New England states and even hosts a regional pitch competition. But these efforts are just the beginning of addressing the need for broader change.
After the exciting yet challenging start-up process, I reached out to organizations like the Massachusetts Black Economic Council and Black Owned Bosses, which work to support local Black-owned businesses. With their help, I found my footing as a business owner and gained a key insight: Creativity fuels business, but it takes education, connection, and support to sustain it. This is a lesson I want to teach young people early and often. Our community depends on it.
Toiell Washington is a founding member of the digital organizing platform Black Boston and owner of gaming company The Master’s Tools. Send comments to magazine@globe.com.
