Startup activity is rising, but entrepreneurs of color remain underrepresented and have disparate experiences. For example, businesses started by people of color perform differently than white-owned businesses. White-owned firms had double ($2.38 million)the average sales of Asian ($1.19 million), Hispanic ($1.12 million), and black-owned ($0.91 million) businesses. In addition, black- and Hispanic-owned businesses have higher failure rates than white- and Asian-owned firms. Reasons include industry differences, with black-owned companies being overrepresented in less-successful industries (for example, in the personal services industry) and entrepreneurs of color starting their businesses with less capital than their white counterparts. As the United States becomes a more racially diverse country, a continued disparity in entrepreneurship among people of color portends further inequality and slow economic growth. Closing this gap requires understanding the unique challenges that confront entrepreneurs of color and a commitment from the private and public sectors to broaden entrepreneurial opportunities.