New research reveals that one in four residents in Baltimore and Baltimore County describe themselves as entrepreneurs. But as the Johns Hopkins 21st Century Cities Initiative found, “that doesn’t mean we’re living in the land of opportunity.”
The survey, which included over 800 residents in Baltimore and 500 in Baltimore County, uncovered wide gaps in how people understand and experience entrepreneurship—especially when race, income, education, and age are considered.
“More than one-third of Black residents described themselves as entrepreneurs, compared to one-fifth of white residents. Younger residents with lower incomes and less education also were more likely to call themselves entrepreneurs.”
Black Baltimoreans Lead in Entrepreneurship Identity
The survey results stood out when compared to similar nationwide data. According to the report, “Black residents were more likely to call themselves entrepreneurs than Black people across the country.” The reverse was true for white Baltimoreans.
The report divided entrepreneurs into two categories: those “pulled” into entrepreneurship because of exciting opportunities, and those “pushed” into it due to a lack of other options.
“Some Baltimoreans, especially Black residents with less education and income, are likely being pushed into ‘necessity entrepreneurship.’”
Entrepreneurship Driven by Survival, Not Opportunity
The connection between income level and outlook on entrepreneurship was stark.
“Poorer residents — those making less than $70,000 — were more likely to hold pessimistic views. Wealthier residents — those making more than $70,000 — were more likely to hold optimistic views.”
Yet, it’s often the poorer residents who turn to entrepreneurship to earn a living.
“The survey results suggest that entrepreneurship in Baltimore is more about survival than opportunity… In the absence of livable wage job opportunities, people turn to entrepreneurship out of necessity to make some income, but oftentimes income from entrepreneurship is more uncertain than what is available from a good job at an established business.”
Looking for Solutions: More Support Needed
The report concluded by calling on foundations, regional banks, and government officials to step in with more robust support and financing.
“The report concluded by recommending that foundations, regional banks and government officials find new ways to support these entrepreneurs and finance their businesses.”
Baltimore’s past as a middle-class manufacturing hub is now a memory. Like other Rust Belt cities, the region’s economic base has shifted.
“Baltimore, like other Rust Belt cities, was once a magnet for middle-class workers in industries like manufacturing. But many of those jobs no longer exist.”
Instead, the city now leans heavily on anchor institutions like Johns Hopkins University and the University of Maryland Medical System. Economists from the Federal Reserve Bank of Philadelphia found that:
“Of metropolitan areas with more than 2 million residents, Baltimore had one of the highest reliance scores in the country.”
Local Efforts: BOOST Grants and Crowdfunding Alternatives
Some local initiatives have tried to support Baltimore’s entrepreneurs. For example:
“The BOOST program from the Downtown Partnership of Baltimore recently awarded $100,000 to five Black-owned businesses.”
And:
“Last week, Mayor Brandon Scott announced grants of up to $200,000 for downtown restaurants.”
However, access to traditional business loans remains a hurdle. Many would-be entrepreneurs are disqualified by bank requirements.
“Other entrepreneurs seeking traditional business loans are looking outside of banks, where credit scores and capital requirements disqualify many would-be business owners.”
So they turn to other solutions:
“Instead, they’re turning to crowdfunding platforms like Crowd Fund Baltimore.”
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