Introduction

As minority populations continue to grow, America is becoming an increasingly diverse nation. According to the U.S. Census Bureau, 39.4% of the country’s population currently identifies as nonwhite. But by some estimates, the U.S. will become a “majority-minority” country by 2044.

Changing demographics have far-reaching implications not just socially and culturally, but economically as well. Minority populations are critical drivers of the U.S. economy, yet they face numerous challenges in the labor force, such as wage gaps and underrepresentation in certain white-collar industries like finances and technology.

Minorities also face poor representation among new business ventures, or “startups.” According to Census Bureau data, startup firms in their first two years of business represent about 9% of all businesses in the U.S. and employ 2% of workers. Despite minorities making up almost 40% of the US population, minority-owned startups account for only 27.4% of all startup businesses.

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