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There are significant disparities in entrepreneurship start-up and success for women and racial and ethnic minorities relative to White men. These differences are due, in part, to significant inequities in accumulated wealth, access to capital, and the development of valuable networks that provide mentorship and support. Rectifying these inequities represents a significant opportunity: More-effective entrepreneurial support has the potential to improve wealth accumulation among these groups, revitalize communities where minority business owners are located, and boost economic growth by unlocking the talent of would-be entrepreneurs.

By crafting targeted and thoughtful policies to enhance entrepreneurship among these underrepresented groups, policymakers would be promoting equality of opportunity while lifting up the economy as a whole.

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Funding for this research was provided by gifts from RAND supporters and income from operations. The research was conducted within the RAND Lowy Family Middle-Class Pathways Center within RAND Education and Labor.

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