New research from the Johns Hopkins 21st Century Cities Initiative reveals that a quarter of residents in Baltimore and Baltimore County describe themselves as entrepreneurs. But the numbers don’t necessarily paint a picture of thriving opportunity. Instead, the data shows a deep divide shaped by race, income, and education.
“The survey results suggest that entrepreneurship in Baltimore is more about survival than opportunity,” the report said.
Black Baltimoreans Are More Likely to Call Themselves Entrepreneurs
The survey, which polled more than 800 residents of Baltimore and 500 from Baltimore County, found a sharp racial disparity.
“More than one-third of Black residents described themselves as entrepreneurs, compared to one-fifth of white residents.”
Not only are Black residents in Baltimore more likely to call themselves entrepreneurs than their white counterparts, but they are more likely to do so than Black people across the country, according to a similar national survey. The opposite is true for white Baltimoreans, the report noted.
Push vs. Pull: What’s Driving People Into Entrepreneurship?
The survey breaks down entrepreneurs into two categories:
- Those who are “pulled” into entrepreneurship by exciting opportunities.
- Those who are “pushed” into it due to a lack of other options.
“The report found that some Baltimoreans, especially Black residents with less education and income, are likely being pushed into ‘necessity entrepreneurship.’”
Views on Entrepreneurship Reflect Economic Divides
When asked about the broader opportunities available in Baltimore and Baltimore County, responses varied greatly depending on income level:
“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.”
Still, it’s those with fewer resources who are more likely to start businesses:
“Yet it’s often poorer residents who turn to entrepreneurship for a living, while wealthier residents rely on traditional employment.”
Entrepreneurship as a Response to Systemic Barriers
The report emphasizes that for many, entrepreneurship is not a choice but a necessity:
“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.”
It also suggests that workplace discrimination and lack of access to quality jobs are pushing people toward starting their own ventures.
Calls for Institutional Support
The report ends with a call to action:
“Foundations, regional banks and government officials” should “find new ways to support these entrepreneurs and finance their businesses.”
Historically, Baltimore was a hub for middle-class jobs in manufacturing, but those opportunities have largely disappeared:
“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.”
Baltimore’s New Economy: Anchored by Institutions
Today, Baltimore’s economic backbone has shifted. It’s now heavily reliant on “anchor institutions” like the University of Maryland Medical System and Johns Hopkins University.
“Of metropolitan areas with more than 2 million residents, Baltimore had one of the highest reliance scores in the country,” according to economists at the Federal Reserve Bank of Philadelphia.
Local Efforts to Boost Black-Owned Businesses
The city has rolled out several programs to help small businesses, particularly Black-owned ones:
“The BOOST program from the Downtown Partnership of Baltimore recently awarded $100,000 to five Black-owned businesses.”
Last week, Mayor Brandon Scott announced a grant program offering up to $200,000 for downtown restaurants.
Crowdfunding Emerges as an Alternative
Traditional financing remains out of reach for many would-be entrepreneurs, as “credit scores and capital requirements disqualify many.” Instead, they’re exploring alternative funding models:
“They’re turning to crowdfunding platforms like Crowd Fund Baltimore.”
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