Impact investing has emerged as a powerful tool for directing private capital toward social and environmental causes while generating financial returns for investors. This approach is particularly relevant for black and brown entrepreneurs who often face systemic barriers that limit their access to capital and resources. Many of these entrepreneurs are creating businesses that address social and environmental challenges faced by their communities, such as access to affordable housing, healthcare, and education. However, they often struggle to secure the funding they need to grow and scale their businesses.
Despite the data documenting the opportunity gap for diverse founders compared to their White counterparts, there is a persistent narrative that suggests no correlation between race and ethnicity and business enablement. Yet, their funding journey varies significantly and getting people to buy into social impact as a business strategy isn't easy.
In this episode of The New Mainstream podcast, Jessica Salinas, Chief Investment Officer at New Media Ventures, discusses how impact investing can empower diverse entrepreneurs and contribute to a more just, equitable, and sustainable society.
Supplier diversity programs were developed to level the playing field for diverse suppliers, including minority, women, LGBTQ, disabled, and veteran-owned businesses. By connecting entrepreneurs to economic opportunity, ideally, organizations can harness the power of the marketplace to drive social impact.
However, supplier diversity often falls short on the data. It’s widely known that diverse suppliers are not given the opportunities to contract for public sector work at the rate of their non-minority and male counterparts despite the explosive growth of entrepreneurship among minority and women-owned firms. (more…)