Small Business Strikes Back: The Numbers Behind The Next 1000

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To spotlight the army of entrepreneurs throughout the country, Forbes is debuting the Next1000 initiative. These are the small-scale entrepreneurs with outsized ambitions

Jamel Toppin for Forbes, Gabby Jones for Forbes, Gabriela Hasbun for Forbes, Courtesy of Alex West Steinman, Janelle Rose Photography, Courtesy of Robert Tankson. Design by Forbesn 2020, American venture capitalists invested an unprecedented $156 billion dollars into 12,254 startups, setting records in biotech, pharma and fintech. There were a record 454 initial offerings in the U.S. markets, generating over $167 billion.

The majority are funded from savings, credit cards, and loans from family or friends, with approximately $80,000 in startup capital for men and $54,000 for women. For people of color, the situation is even more extreme. Over 88% of Black-owned businesses, for instance, are one-person shops, according to the latest data from the U.S. Census Bureau.

State-wide shutdowns and shelter-in-place mandates due to the pandemic have taken a disproportionate toll on these enterprises. “Small businesses and entrepreneurs drive America’s economy, but the environment they operate in is far from level,” says Philip Gaskin, vice president of entrepreneurship at the Kauffman Foundation. “The ongoing pandemic has further magnified the disproportionate impact on Black entrepreneurs, women entrepreneurs, and businesses in rural areas.

 

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