How much money does it take to start a business?
Your eccentric uncle says he started his small business with nothing but pocket change and hard work, but your favorite creator on TikTok says they poured their entire savings into their small business. Google that question and you’ll find hundreds of websites and blogs claiming it takes anywhere from $100 to $400,000 or more to get started. In other words, no one really knows.
But there’s one thing we do know: However much it costs to start a new business, it typically costs Black business owners more. On average, it cost Black business owners $21,000 to start their businesses — compared to $16,000 for their non-Black peers, according to a recent QuickBooks survey.
Additionally, these aspiring Black entrepreneurs have a harder time gaining access to loans and funding. More than half of Black respondents (57%) say they were denied a bank loan at least once when they started their businesses — compared to 37% of non-Black business owners.