Hint: There are over 2.9 million AAPI-owned businesses in the U.S.

Answer: 15%

Questions:

• How can business ownership build wealth?
• What are the risks of business ownership?
• What factors do you think make it easier or harder for someone to start a business?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Urban Institute):

"In 2019, more than 2.9 million Asian-owned businesses existed in the US—far more than other racial and ethnic groups. Roughly a quarter of Asian-owned businesses with employees are concentrated in the restaurant and hospitality sector.

Nearly 1 in 7 Asian families in the US has a business and 13 percent have business equity, similar to rates for white families and 1.5 times that of Black and Hispanic families. Asian households with businesses have $408,000 in median business equity—nearly four times as much as white families and well above Black and Hispanic business owners. For Asian business owners at the 90th percentile, their business value is $4 million.

Among Asian business owners, 34 percent of their wealth comes from business assets—a substantial contribution to wealth creation. Asian households who own a business also have a net worth more than four times greater than those who do not. In addition to bolstering the asset side of the wealth portfolio, businesses can be used as collateral for families to access additional credit and resources to invest in other opportunities—although this can undermine their financial well-being if they are unable to easily repay this debt. Succession planning is crucial to ensure that business equity is preserved and passed on to the next generation.

About the Author

Kathryn Dawson

Kathryn (she/her) is excited to join the NGPF team after 9 years of experience in education as a mentor, tutor, and special education teacher. She is a graduate of Cornell University with a degree in policy analysis and management and has a master's degree in education from Brooklyn College. Kathryn is looking forward to bringing her passion for accessibility and educational justice into curriculum design at NGPF. During her free time, Kathryn loves embarking on cooking projects, walking around her Seattle neighborhood with her dog, or lounging in a hammock with a book.

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