Myth: Women and minority entrepreneurs can close the wealth gap if they simply work harder, pursue higher education, and invest wisely.

Fact: The wealth gap is driven by systemic inequalities, including discriminatory lending practices, limited access to capital, and historical exclusion from economic opportunities. Structural barriers, not individual effort alone, are the primary causes of this persistent disparity.

Myth: Women- and minority-owned banks can significantly close the funding gap if these entrepreneurs prioritize banking with them.

Fact: While supporting minority-owned financial institutions is valuable, these banks control only a fraction of the assets of major financial institutions. Even with full support, it would take decades for them to reach the scale needed to meaningfully close funding disparities.

Myth: Entrepreneurship alone is the key to eliminating wealth disparities for women and minorities.

Fact: Women and minority entrepreneurs often start with significantly less capital and encounter greater difficulty securing funding. For example, only a small percentage of venture capital goes to women- and minority-owned businesses, limiting their growth potential.

Myth: Women and minority business owners lack the skills needed to succeed compared to their white and male counterparts.

Fact: There is no inherent difference in business acumen. The challenges these entrepreneurs face are rooted in systemic barriers such as limited access to mentorship, funding, and high-value networks—not a lack of ability.

Myth: Women- and minority-owned businesses under perform due to a lack of ambition or innovation.

Fact: Performance disparities are primarily due to restricted access to investment, networks, and opportunities, not a lack of drive or talent. When given equal resources, these businesses thrive at comparable or even higher rates.

Despite their potential, many minority-owned businesses continue to struggle due to these entrenched barriers. Supporting underrepresented entrepreneurs through targeted programs and resources is essential not only for closing the racial wealth gap but also for fostering long-term economic growth.