Investment in Black Entrepreneurs Highlighted as Crucial in Fresh study
The Michigan Black Business Alliance and Stackwell Unveil Report on Black Small Business Owners
Stackwell and the Michigan Black Business Alliance (MBBA) have released a report titled "Building Personal Wealth: Empowering Black Small Business Owners Through Investing." The report, published by the Financial Health Network, delves into the impact of investment, education, and tools on the financial outcomes of African-American small business owners.
The report is an extension of findings from the 2024 Small Business Investing Program (SBIP), which offered eligible MBBA members funded investment accounts through the Stackwell platform, along with educational resources.
Barriers to Wealth for African-American Entrepreneurs
The report emphasizes the challenges that African-American entrepreneurs face, such as limited access to small business loans and personal wealth. Black households hold only 4.7% of the total U.S. household wealth, while white households control 80%. This disparity underscores the necessity for solutions aimed at helping all Americans build wealth and secure long-term financial resilience.
"This program equipped Black entrepreneurs with the necessary tools and confidence to view investing as a necessity rather than a luxury," Charity Dean, President, and CEO of MBB, said in a press release.
Key Findings in the Report
- Participant balances increased during the study, with an average balance of $1,838 by the end.
- Approximately 20% of participants made personal deposits during the study period.
- 75% of participants did not withdraw funds from their investment accounts, underscoring a commitment to long-term investing.
- A significant portion of survey respondents lacked prior investing experience, with 31% reporting no investment history.
"Stackwell's playbook demonstrates the impact of investing in the financial empowerment of African-American business owners. This empowers not just individual success but generational opportunity," said Trevor Rozier-Byrd, Founder and CEO of Stackwell.
Addressing the Wealth Gap for African-American Entrepreneurs
Findings from the report align with other research, highlighting the importance of access to investing tools, financial education, community initiatives, and mentorship for African-American small business owners. Solutions include providing investment tools, enhancing financial literacy, fostering community engagement, offering business advice and mentorship, advocating for policy changes, and expanding affordable housing opportunities.
These strategies aim to help African-American small business owners achieve financial independence, promoting economic growth, and bridging the wealth gap between Black and white households.
- The report, titled "Building Personal Wealth: Empowering Black Small Business Owners Through Investing," discusses the crucial role of investing in personal finance for African-American entrepreneurs.
- The study found that 75% of participants in the Small Business Investing Program (SBIP) did not withdraw funds from their investment accounts, demonstrating a commitment to long-term investing and learning about personal growth through finance and business.
- Addressing the wealth gap for African-American entrepreneurs requires solutions such as providing investment tools, enhancing financial literacy, and advocating for policy changes, with the goal of promoting economic growth and bridging the wealth disparity between Black and white households.
