The U.S. has long operated without being an inclusive economy. It’s a fact of American life that’s most apparent in data on racial wealth gaps. In 2019, the median net worth of a white family in the U.S. was about $188,200 compared to $24,100 for Black families, according to the . Two broad factors help to explain the roots of the American racial wealth: discriminatory laws and compound interest.
Closing racial gaps among business owners could have massive effects on the economy. A 2020 Brookings Institution report estimated what would happen if Black businesses reached parity with non-Black businesses, finding that it would create 806,218 more Black-owned businesses, increase revenue among Black businesses by $676,356,621,618, and create about 1.6 million jobs. More broadly, narrowing the racial wealth gap could strengthen the middle class and significantly boost the GDP.
A network of entrepreneurs, advocates, and community leaders, including , , and , are part of that effort to close this gap. to watch this new documentary by Skoll and Freethink* and learn how we’re taking on this important challenge.