Most Entrepreneurs in Program Well-Off
The Small Business Administration’s minority contracting program was established in the late 1960s to assist entrepreneurs in racial and ethnic groups considered economically and socially disadvantaged by past prejudice.
As individuals, however, most of the participants in the 8(a) program are anything but poor.
The SBA says the 727 entrepreneurs who entered the program last year had an average personal net worth of $135,654, excluding their main residences and their stake in the business.
Entrepreneurs with personal net worth of up to $250,000 can enter the program. Once in, they’re considered economically disadvantaged even if their worth rises as high as $750,000.
Almost half the participants in the program are black, about a fourth are Latino, one-fifth are Asian and 6% are Native American.
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