Businesses in Canada owned by black people are often smaller and are less financially viable than businesses owned by white people, Statistics Canada said.
According to the report which analysed data from several sources to 2018, the agency found that the proportion of Black business owners has grown over the years. However, the figures show that these businesses may be struggling with lower profit margins.
Research shows that one of the major challenges of Black-owned businesses is access to capital and that, when it comes to data and research, the Black business community is under-represented.
A 2021 report by the Canadian Black Chamber of Commerce in partnership with the Business Development Bank of Canada found that Black business owners were often not comfortable applying for funding ostensibly due to racial or gender discrimination, as some respondents suggest.
In 2019, 77 per cent of the Black entrepreneurs interviewed generated less than $100,000 in revenue. More than half had less than $50,000 in revenue.
Black-owned businesses are more likely to be unincorporated as well, the agency said.
More than half of Black business owners in Canada in 2018 were immigrants, according to Statistics Canada. The Chamber report notes “that immigrants also face barriers when it comes to opening and operating businesses, including access to capital. Yet immigrants are also more likely to be self-employed out of necessity, the report said, with many newcomers to Canada finding themselves excluded from the labour market.”
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