Black Canadians still hold significantly lower levels of property ownership and intergenerational wealth than other population groups, according to the State of Black Economics in Canada 2025. That gap tells a larger story. For many Black founders, entrepreneurship begins as a personal hustle but aspires to become a family asset. Turning that ambition into reality requires scale, structure, and access to resources that can outlive the founder.
The Wealth Gap That Persists
Across North America, the racial wealth gap remains wide. In the United States, National Community Reinvestment Coalition data shows Black households hold about fifteen cents of wealth for every dollar owned by white households. In Canada, studies from Bain & Company and the Business Development Bank of Canada reveal that most Black entrepreneurs rely on personal savings and generate modest revenues, often below CAD 50,000 a year.
These figures expose a structural pattern rather than an individual failing. Generational wealth depends on assets like companies, property, and investments that can be transferred or sold. When businesses stay small or informal, they struggle to create lasting value. Building legacy wealth therefore starts with turning daily enterprise into durable equity.
Canada’s Entrepreneurship Landscape
In Canada, the promise of entrepreneurship is often constrained by scale. Research from Bain & Company finds that around 72 percent of Black business owners report annual revenues under CAD 50,000, and nearly 80 percent rely on personal savings to fund their ventures. Most operate as sole proprietors with limited access to credit, mentorship, or succession planning.
The Business Development Bank of Canada notes that many Black entrepreneurs start businesses to gain independence rather than to build intergenerational wealth. Yet, without growth capital or networks that help firms scale into employer businesses, these ventures rarely accumulate the value that can be transferred to future generations.
This pattern means entrepreneurship often remains a job rather than a generational asset. The challenge is not ambition but creating the ecosystem that lets more Black-owned firms evolve from self-employment into enduring enterprises.
Lessons From The United States
Across the border, the relationship between entrepreneurship and wealth is clearer. Research from the National Community Reinvestment Coalition shows that Black business owners in the United States have about twelve times more wealth than Black non-owners. This difference reflects the power of assets that grow and compound over time. When businesses scale, they create equity, employ others, and can be passed on or sold.
A study by the Brookings Institution adds that if Black-owned firms reached the average size and revenue of white-owned ones, they could add hundreds of billions to the American economy. The data points to scale as the key multiplier. In the U.S., programmes focused on access to credit, supplier diversity, and corporate contracting have helped a growing share of Black founders build employer firms and businesses that live beyond their founders and strengthen community wealth.
What Legacy Looks Like In Practice
Building legacy wealth starts when a business stops depending solely on its founder’s daily effort. In Canada, succession planning remains rare among small firms, yet it is the foundation of generational transfer. A company that’s properly registered, tax-compliant, and has clear ownership records can be valued, sold, or inherited. That is how entrepreneurship becomes an asset, not just income.
Across both Canada and the United States, many Black founders are now beginning to formalise their operations by incorporating, hiring accountants, and building family trusts. Some invest profits into property or portfolios that diversify income streams. Others mentor relatives to take over management roles. Each of these steps converts a short-term hustle into a long-term financial legacy.
Legacy, in this context, is not abstract. It is measurable in ownership papers, transferable equity, and the ability to hand something tangible to the next generation.
The Policy And Ecosystem Levers
Canada has made visible policy strides in supporting Black-owned businesses. The Black Entrepreneurship Program (BEP) was launched by the federal government to improve access to financing, mentorship, and business development services. Through the BEP Loan Fund, Black founders can apply for up to CAD 250,000 in capital, often through community-based financial institutions.
Still, questions remain about impact. Evaluations by partners such as the Business Development Bank of Canada show that many applicants seek small working-capital loans rather than long-term growth financing. Programmes rarely extend into business succession, equity investment, or export support which are all essential for building legacy firms.
In comparison, several U.S. initiatives focus on scaling. Supplier-diversity contracts, government procurement access, and targeted credit programmes have helped more Black-owned companies become employer firms. Canada’s ecosystem is younger, but these models point to where future policy can move: from inclusion to ownership retention.
From Business Ownership To Legacy Ownership
For many Black entrepreneurs, the next phase of progress will be defined not just by business creation but by business continuity. The data from Canada and the United States points in the same direction: wealth endures when enterprises mature into assets that can be transferred, sold, or expanded beyond one lifetime.
Canada’s challenge is to make that path attainable. Scaling requires capital, mentorship, and long-term vision, not short bursts of funding. As new generations of Black founders formalise their ventures, the focus must shift from survival to succession.
Across Canada and the United States, the future of Black entrepreneurship will be measured not only by the number of businesses started, but by how many endure long enough to change the balance sheet of history.
