Kansas City and St. Louis both rank among the worst metro areas in the U.S. for minority-owned businesses, according to a new report.
Out of the country’s 50 largest metro areas, Kansas City took the 49th spot and St. Louis landed at the very bottom, based on a new study from LendingTree, an online lending platform.
In Kansas City, minority business owners are underrepresented. About 2.4 percent of minorities in the metro area are self-employed. Of Kansas City businesses owned by minorities, 42 percent have been in operation for six or more years.
St. Louis fares worse, with about 27 percent of minority-owned businesses having operated for six or more years. Kansas City businesses also do better than St. Louis businesses at generating more than $500,000 in revenue.
Lack of access to capital is one factor the report offers for the low rankings.
San Francisco landed the No. 1 spot, followed by San Jose, California and Washington, D.C.
The rankings were compiled based on four criteria: rate of self-employed minorities; parity between demographic representation and business ownership; rate of minority-owned businesses with $500,000 in revenue; and rate of minority-owned businesses in operation for at least six years.