June 30th 2023.
Maryland has been ranked as the second-best state for minority entrepreneurs to succeed. According to a study by Lendio, Maryland helps minority business owners and entrepreneurs secure funding through the Community Reinvestment Act. The state supplies 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. Furthermore, Community Advantage loan approvals in Maryland increased by 10.3% from 2021 to 2022. This program by the Small Business Administration provides access to capital for small business owners and entrepreneurs in underserved communities.
Not only that, but Maryland was also ranked as the second best place for Black business owners in a 2022 study by Merchant Maverick. According to the study, Maryland ranks first in percent of the workforce employed by Black-owned businesses. In addition, Black businesses in Maryland averaged an annual payroll of $465,000, which was the fourth-highest in the U.S.
These successes are due to more than just federal assistance. Linda Loubert, an associate professor of economics at Morgan State University told The Baltimore Banner that education and exposure to entrepreneurship are among the factors responsible for Maryland’s high ranking. The strong presence of Historically Black Colleges and Universities in the state also contributes to the success.
Reciprocal relationships between communities and businesses also have an impact. Jasmine Simms, co-founder of the National Association of Mom Entrepreneurs, has helped start more than 400 businesses in Maryland. Jasmine Norton, owner of The Urban Oyster restaurant, believes success is partly due to Black people’s inborn work ethic.
Overall, Black-owned businesses nationwide are estimated to receive $1 billion this year, according to an analysis by Creative Investment Research. Maryland is certainly making strides to be among the top states for minority business owners and entrepreneurs.
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