Wall street titan Goldman Sachs is doubling down on its commitment to Black women owned businesses and nonprofits with a $2.1 billion boost. Black women are the fastest growing demographic of entrepreneurs in the U.S., but they face disproportionate financial headwinds. Through Goldman’s ‘One Million Black Women’ program it plans to change that and positively impact 137 organizations. Just how far will the $2.1 billion actually go to making a difference in the economy for Black women?
The Breakdown You Need To Know:
With the number of businesses owned by Black women growing 50% from 2014 to 2020, representing the highest growth rate of any female demographic, more capital and support has to start flowing in their direction. In the U.S., 17% of Black women are in the process of starting a new business, compared to 10% of White women and 15% of White men, according to JPMorgan.
“The past two years have confirmed a key insight of our research: By investing in businesses that help Black women advance, we can build a stronger economy for everyone,” said Goldman Sachs CEO David Solomon.
Banking On Black Women:
Economists for Goldman noted that closing the gender pay gap for Black Women could increase gross domestic product by $300 billion to $450 billion. Additionally, it has the opportunity to create between 1.2 million and 1.7 million jobs in the U.S.
In 2021, the financial firm committed $10 billion behind the fight to equalize “Black Womenomics,” the idea that investing in women is good for business and the economy (not just fair) is showcased in its 32-page research report.
Based on the firm’s research when looking at single Black women, their median net wealth is 92% less than that of single white men. Goldman found that by reducing the earnings gap for Black women, the U.S. annual GDP would increase by as much as 2.1% or $525 billion.
“When a Black woman entrepreneur is able to grow her business, she employs Black people in the community, she’s a leader in that community, she mentors individuals in that community. The ripple effect of investing in a Black woman entrepreneur is tremendous,” said Asahi Pompey, President of the Goldman Sachs Foundation to CNBC.
CultureBanx noted that Black female-founded businesses have been, and always will be, the standard for the current wave of cultural currency flowing through our economy. Goldman Sachs claims this new initiative has laid the groundwork to positively impact the lives of over 215,000 Black women across the U.S. Only time will tell whether or not the firm is able to achieve its impact goals.
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