Tackling racial wealth gap could unlock major economic gains: RBC
BNN Bloomberg
A new RBC report from shows that encouraging ownership of investment vehicles and businesses among visible-minority Canadians could help lead to increased innovation and competitiveness on the global stage.
A new report from Royal Bank of Canada shows that encouraging ownership of investment vehicles and businesses among visible-minority Canadians could help lead to increased innovation and competitiveness on the global stage.
While many Canadians gained wealth during the COVID-19 pandemic, the report highlights that financial gains among visible minorities have been much less significant. As COVID-related government income supports wind down, that wealth disparity could worsen, the report found.
RBC points out that visible minorities represent about one-fifth of Canada’s population, but only account for 13 per cent of private business owners.
“If visible minorities owned businesses at a rate comparable to the overall population, more than 100,000 new businesses would be created, each with the potential to hire between eight and 10 workers,” according to Rannella Billy-Ochieng', an economist with RBC Economics, in a report released on Thursday. “Breaking this pattern would benefit the economy as a whole.”
In addition to a pre-existing financing gap that visible-minority business owners face, she said labour shortages and rising input costs are presenting extra challenges.
Enhancing financial support for those business owners and encouraging more visible minorities to become entrepreneurs could lead to a stronger economy overall.
