The Path to Wealth:
Small Business Ownership
Small Business News
Wealth means more than just money: it also means having the resources to keep yourself and your family healthy and stable. And according to this article by Assetfunders, the best way to build a path to financial stability is to own a small business.
According to the census, households that own a business hold more than twice (!!) the wealth of their peers who are employees. And while white men still are at the top of the wealth hierarchy, owning a small business has been proven to narrow the racial income back more than any other factor.
- Black business owners are seven times wealthier than their wage-earning peers;
- Latinx business owners hold roughly four times as much wealth as non-business owners;
- Business-owning households hold more than twice the wealth of their wage-earning peers.
And although white adults still have 13 times the amount of net wealth as their non-white peers, that figure drops to three when you compare them with small business owners (according to AEWORKS Black Business Owner report).
Today, almost 100 million people either own or work for a small business. 43% of these small businesses are in low-wealth communities. So that neighborhood dry cleaners, the mom & pop sandwich shop, and the vintage clothing store in your area are not only convenient, they are crucial paths to long-term health and wealth for entire communities: as proven by the many studies referenced in this Asset Funders Network report. When the people who invest money for a living say that small businesses are the best use of their wealth, pay attention!
So if you are a wage-earner and are thinking about making the leap to starting your own business, you could be on the road to empowering your entire community. And if you have the opportunity to buy a coffee from that local mom & pop shop or a large chain we shall not name, think about where your dollars are going, and who you really want to support.
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