New Minority Business Development Initiatives
By James Pruitt, Senior Staff Writer
Racial economic gaps still tear an ugly gash in our country’s financial landscape. Intergenerational wealth far disadvantages historically underprivileged groups. Due to complex economic circumstances, some minorities have even lost ground on many fronts. Many even struggle to maintain homes bought and paid for by struggling grandparents during the civil rights era. No one should forget the role of large private institutions in fostering such inequalities.
Complex economic changes over the past several decades have largely disadvantaged minorities. At the very least, some large banks have taken enough responsibility for their role in economic shifts that they have contributed to several programs to aid minority small business owners. Whether these efforts are merely nominal remains to be seen.
Enter “Corporate Call to Action: Coalition for Equity and Opportunity.” This alliance of financial institutions dates from September 2020. As recently as last May, eighteen financial institutions agreed to set aside $10 billion dollars for minority business owners over the next five years.
These institutions include Bank of America, Morgan Stanley Dean Whittier, Goldman Sachs, and Citigroup. They have set a goal of $30 billion dollars for historically underprivileged groups. Incidents such as the George Floyd shooting seem to have mustered the political will for a more proactive approach.
How do business owners access capital from this alliance of institutions? Between them, these companies boast an estimated $27 trillion in capital. As “Corporate Call to Action” develops, the organization intends to apply funds in a variety of directions. How they apply this capital makes all the difference.
Their website, https://corporatecalltoaction.org, references “four pillars.” First, they mention “Supply Chain and Business Partner Ecosystem.” Second, the organization references “Community Investment.” Third, another pillar is “Talent Pipeline.” This pillar involves internship and workplace development programs. Fourth is “DEI Commitments and Transparency.” “DEI” refers to “diversity,” “equity,” and “inclusion.” The “Call to Action” began with an alliance between the Connecticut Office of the Treasurer, the Ford Foundation, and several for-profit institutions. We all hope this alliance turns out well.
Hopefully, these institutions have finally absorbed some responsibility for the economic inequalities they have historically fostered. In the long run, this corporate movement may or may not adopt measures that fit with the needs of relevant business owners. However, as things unfold, valuable opportunities may spring from these initiatives. Entrepreneurs should stay vigilant for opportunities as they arise. These vast funds, set to good use, should ideally reap great benefits given the right political will and engagement.
At the same time, pro-bono funds sometimes dissipate when trickled through large bureaucracies. The “Corporate Call to Action” is still quite new. Hopefully, their developments continue in the right direction. Proper development of such initiatives require transparency, as well as watchfulness on the part of stakeholders.
Soon, these resources could find channels for real change. Grass-roots entrepreneurs could benefit from engaging as closely as possible with the member organizations and development of their new initiatives. In the long run, presumably these corporate programs will morph and adapt. In the process, interested business owners should take any measures to involve themselves. Engagement is key. Only in this fashion will these programs respond to the needs of relevant communities.
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