Supporting diverse entrepreneurs
Following a spate of killings of unarmed Black people, the figures highlight structural issues facing communities of colour amid a historic period of racial upheaval in the United States. Socially and economically disadvantaged populations face greater gaps in opportunities and resources due to the pandemic’s consequences.
Ijeoma Oluo, a writer and speaker on racial and gender issues, stated, “We are seeing black and brown businesses going out of business much faster than white businesses in the middle of this pandemic because they were not able to reserve the funds and were not able to get the loans that other businesses have been able to get.” When trying to launch their own firms, entrepreneurs of colour encounter significant institutional obstacles in areas where a large number of white individuals are not.
According to Lara Dickinson, co-founder of the JEDI Collaborative, “there are numerous examples showing that more diverse teams not only drive better decisions but also more profits, more growth, and significantly more innovation revenue.” “We all work hard every day to address the challenges we face in the food and agricultural systems, and a more diverse natural products industry is essential to finding solutions.”
New projects tackle these disparities and provide remedies. The natural goods business is encouraged to promote justice, fairness, diversity, and inclusion through the recently established JEDI Collaborative. The programme offers a structure for integrating the ideas into the culture of an organisation. According to the consulting firm McKinsey and Co., companies with diverse organisations have a 27% higher chance of creating long-term value and a 21% higher financial performance.
Equity2, an investment firm based in Kansas City, was established just a year ago with the goal of helping later-stage companies in areas that lack a substantial institutional capital base and banking infrastructure.
Managing director of equity2, Emily Lecuyer, discussed the prejudices and obstacles minority-owned companies face as well as the necessity for “friendly and patient” funding to support people who are frequently disregarded by traditional financial institutions.
“Only by fully utilising the potential of private capital markets can we advance,” Ms. Lecuyer declared. “We cannot accomplish this by charity or government initiatives and legislation. It means reevaluating how we view the billions of dollars that are currently sitting on Wall Street and are invested in ways that aren’t consistent with the kind of world we want to live in. A major change in the way we allocate capital will be necessary.
It is everyone’s duty to eliminate institutional racism. Raising racial equality will necessitate facing harsh realities that many have been able to overlook. As people and as a sector, we need to confront ingrained beliefs and make a commitment to deliberate action.