Despite growth and success, business owners of color face key challenges, including access to financing, business locations, and anti-Asian racism stemming from the pandemic. A series of new reports out of UW-Madison’s Community Economic Development program highlight the growth and challenges faced by business owners of color in Wisconsin. The four special reports provide a breakdown of data among Black, Latino, Asian, and Native owned business. Each report provides data about the number and size of businesses as well as unique challenges each group faces.

Black-Owned Businesses in Wisconsin

Among its key findings for Black-owned businesses, the report shows that while Black-owned businesses in Wisconsin nearly quadrupled in number between 1997 and 2012, black-owned businesses are still underrepresented relative to the state’s population. In 2019, the share of Wisconsin’s population which identified as Black or African American was 6.44%, yet Black-owned businesses only made up 4.30% of the state’s businesses. Further, Black-owned businesses are generally smaller in terms of sales and employment. For example, for every dollar generated by non-Hispanic white-owned businesses with employees, Black-owned employer businesses made $0.42 on average. The performance gap results from several compounding challenges, including access to financing and the location of their businesses, which are fundamentally tied to the racial-wealth gap.

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Latino-Owned Businesses in Wisconsin

Among its key findings for Latino-owned businesses, the report shows that despite strong growth in the number of Latino-owned businesses – which quadrupled between 1997 and 2012 – Latino-owned businesses are still underrepresented. In 2019, the share of Wisconsin’s population which identified as Hispanic or Latino was 7.09%, yet Latino businesses only made up 3.12% of the state’s businesses. Latino-owned businesses are generally smaller in terms of sales and employment. For example, for every dollar generated by non-Hispanic white-owned businesses with employees, Latino-owned employer businesses made $0.46 on average. Over one-quarter of the Latino population in WI are immigrants. Immigrants and Latinos have each more than doubled their share of new entrepreneurs since the late 1990s.

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Asian-Owned Businesses in Wisconsin

Among its key findings for Asian-owned businesses, the report shows that from 1997 to 2012, the number of Asian-owned businesses in Wisconsin grew by more than 2.5 times. Asian-owned businesses are generally smaller in terms of sales and employment. For example, for every dollar generated by non-Hispanic white-owned businesses with employees, Asian-owned employer businesses made $0.62 on average. The COVID-19 pandemic uniquely impacted Asian business owners as anti-Asian sentiments negatively impacted businesses.  In Wisconsin, support for Asian business owners could include attention to financing challenges for Hmong entrepreneurs specifically who have lower wealth levels on average.

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Native-Owned Businesses in Wisconsin

Among its key findings for Native-owned businesses, the report finds that from 1997 to 2012, the number of Native-owned businesses grew modestly compared to other groups, from 2,338 to 3,115. The share of Wisconsin’s population which identified as American Indian is 0.94% which is slightly greater than the Native-owned share of businesses at 0.84%. For every dollar generated by non-Hispanic white-owned businesses with employees, Native-owned employer businesses made $0.48 on average. Over half of Wisconsin’s Native population resides in rural areas, primarily on or near tribal lands. The rural location of many Native-owned businesses uniquely positions them as both remote and diverse businesses.  

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Explore the Wisconsin Economy Series

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