Abstract
Studies have shown that in the U.S., Black, Hispanic, and women entrepreneurs are given a tiny fraction of venture capital funding, which is vastly disproportionate to their representation in the population. This investment discrepancy is not only socially unjust, but it also deprives the U.S. of the advantages in innovation and global competitiveness that could stem from increasing the participation of these groups in innovative sectors. This is particularly true within transdisciplinary startups, including those focused on smart energy, biomedical, and nanomedical technologies, all of which require cross-disciplinary experts. Every new enterprise in these fields experiences challenges in finding adequate support. These challenges exist at a time in the 21st century when U.S. innovation is facing unprecedented pressures in competition for primacy. In 1960, U.S. R&D expenditure for defense and private industries was approximately 69 percent of global spending on R&D [1]; whereas in 2016, the U.S. share of global R&D expenditure had decreased to just 28 percent [2], due to China’s substantial advances in R&D. If this trend continues, both China’s GDP and R&D expenditure measured by GDP will outperform those of the U.S. by 2030 [3].
Highlights
Business Funding InequitiesWomen and people from underserved minority groups often face many hurdles when they attempt to secure business funding in comparison to white men
Studies have shown that in the U.S, Black, Hispanic, and women entrepreneurs are given a tiny fraction of venture capital funding, which is vastly disproportionate to their representation in the population
Innovative Postdoctoral Entrepreneurial Research Fellowship (I-PERF) facilitates the professional development of Black, Hispanic and female research fellows, who are typically underrepresented within STEM fields, by offering them invaluable experience within research and technology companies
Summary
Women and people from underserved minority groups often face many hurdles when they attempt to secure business funding in comparison to white men. The SBA’s 2013 Annual Report – the latest known report – revealed that only 15 percent of this funding was awarded to businesses owned by people from underserved minority groups [5], even though these groups comprise approximately one-third of the U.S population. The study found that only 1 percent of venture fund recipients were African American and 9 percent were women of all ethnicities. Initiatives that support the professional development and business endeavors of individuals from underserved groups are critically important. Such initiatives would ensure that the talents of bright individuals are recognized, and not wasted
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