The Impact of Small Business Training for Low-Income Black Women

Black Americans experience substantially different economic circumstances compared to their white peers. Black households earn incomes that are 58 cents on the dollar compared to white households, and the median net worth of white households is nearly 8 times that of Black households. While many systemic forces drive these gaps, racial differences in small business ownership and greater wealth mobility among entrepreneurs is a contributing factor. Seen as a key pathway to wealth mobility, the federal, state, and local governments provide billions of dollars each year to support small business creation through grants, loans, tax breaks, and training programs. To extend our understanding of the effectiveness of small business training for economic mobility, we are implementing a randomized controlled trial evaluation of a non-profit small business training program for Black entrepreneurs. Our study examines the impact of Corner to Corner’s The Academy, a 10-week program that helps underestimated entrepreneurs start and grow their own businesses. Using survey and administrative data, we will measure the impact of the program on business ownership and earnings, income, employment, financial and mental well-being, credit, and social inclusion outcomes for a sample of 2,400 study participants from Nashville, TN.