Macroeconomics Paper 3
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Macroeconomics Paper 3
Introduction
Entrepreneurship is an integral driving force for economic growth, fueling innovation, job creation, and competition. On the other hand, in the case of black entrepreneurship, capital availability and the process of managing a business can be stumbling blocks. This essay is intended to discuss the macroeconomic consequences of entrepreneurship, granting specific attention to the Black entrepreneurs’ experiences in the state of Georgia as reflected in the piece of the New York Times, “Black Entrepreneurs, Disgrunted by High Rates, are Turning to the Vote” by Peter S. Goodman.
Summary of the Article
The article points out the ordeals of Black business owners like Kimberly Jolasun and Veronica Woodruff in Georgia, who encounter challenges in raising the capital necessary for their businesses. Jolasun, the tech startup Villie, faces a similar situation when trying to start a business where he is forced to borrow at a very high rate, and they also have his travel assistance company, which confronts the same problem of profiling by the financiers (Goodman, 2024). On many occasions, even though they might come with a lot of abundant great innovative ideas, they face the money lenders charging huge interest rates and with very limited options for technology and capital, which reduces their growing strategies.
Analysis and Opinion
The problems Black entrepreneurs encounter regarding capital access can have far-reaching consequences for the entire economy. Entrepreneurship is one of the main sources of economic vitality that leads to rivalry, employment generation, and productivity gains. Nevertheless, the hurdles to business creation, mainly at the Black Americans’ expense, intervene with overall potential and widen the gap between social groups (Goodman, 2024). The piece under consideration brings to the fore the inequity in fund access; all Black entrepreneurs receive the highest refusal rates and violence in the finance sector. This act smothers small businesses’ lives and evokes the cycle of countrywide monetary inequality. Data has shown that black and Hispanic owners have a bias in that they get higher interest rates compared to their white counterparts, affecting their operations and level playing ground.
Addressing Black-owned businesses’ systemic hurdles will result only through purposeful attempts to make policy, financial institutions, and society work towards this goal. Creating low-income loans aimed at underserved entrepreneurs, focusing on diversity in investor portfolios, or distributing cash in local areas can be necessary to build a more equitable entrepreneurship ecosystem. Furthermore, if entrepreneurship for underrepresented groups is supported, it can show significant positive externalities for the economy. By disentangling the peddling postback entrepreneurs’ peddling possibilities, we could revise job creation and overall economic growth that would benefit society in general. Moreover, this creates a better business environment with more explanatory perspectives and opinions, resulting in innovation and competitiveness.
Reference
Goodman, P. S. (2024, May 1). Black Entrepreneurs, Frustrated by High Rates, Look to the Election. The New York Times. https://www.nytimes.com/2024/04/30/business/georgia-black-entrepreneurs.html