A study by lendio ranked Maryland as the second-best state for minority entrepreneurs to succeed, The Baltimore Banner reported.
Barriers to capital disproportionately hold back Black business owners and entrepreneurs, but Maryland helps minorities secure funding through the Community Reinvestment Act, lendio reported. The Banner reported that the east coast state supplies underserved business owners and entrepreneurs with more business loans than the national average through the federal program.
To be exact, Maryland provides $389 per capita versus the national average of $351 per capita, lendio shared. According to lendio, Community Advantage loan approvals in Maryland increased by 10.3% from 2021 to 2022. The program by the Small Business Administration (SBA) provides access to capital for small business owners and entrepreneurs in underserved communities.
Maryland also ranked as the second best place for Black business owners in a 2022 study by Merchant Maverick, BLACK ENTERPRISE previously reported. According to the study, Maryland “ranks first in percent of the workforce employed by Black-owned businesses (3.49%).” Black businesses in Maryland also averaged an annual payroll of $465,000. According to the study, the amount was the fourth-highest in the U.S.
On top of federal assistance, Black business owners and entrepreneurs told The Banner that education and community involvement contribute to Maryland’s high rank in the lendio study.
Linda Loubert believes education and exposure to entrepreneurship are among the factors responsible for Maryland’s high ranking. The associate professor of economics at Morgan State University specifically noted the strong presence of Historically Black Colleges and Universities (HBCUs) in the state. She told The Banner, “Having business schools and a lot of push to understand finances helps.”
Reciprocal relationships between communities and businesses can also help or hinder success. Jasmine Simms knows a thing or two about rallying behind her community to create successful businesses. The Banner reported the co-founder of the National Association of Mom Entrepreneurs has helped start more than 400 businesses in Maryland.
Black people in America have had to overcome a lot. One business owner believes Maryland’s success is partly owed to Black people’s inborn work ethic. Jasmine Norton, the owner of The Urban Oyster restaurant, said, “But it’s also our ability to survive. That is instilled in us before we go to school. We have always been equipped with those skills.”
BLACK ENTERPRISE reported that Black-owned businesses nationwide are estimated to receive $1 billion this year. The projection comes from an analysis by Creative Investment Research.