September 30th is National Black Funding Day and In a groundbreaking development, Dr. Rashae Barnes has instituted National Black Funding Day, a momentous occasion designed to commemorate the remarkable accomplishments of black entrepreneurs within the funding industry across the United States. This day not only seeks to applaud their achievements but also aims to spotlight and address the glaring disparities in funding opportunities for black and minority-owned businesses.
National Black Funding Day endeavors to shed light on the inequalities that persist in funding sources, encompassing venture capital, grants, and access to educational resources, with the ultimate goal of empowering underserved communities to secure funding for their entrepreneurial endeavors. This initiative represents a vital step toward narrowing the gap that black entrepreneurs have historically faced when seeking financial support, with less than 2% of overall funding traditionally being directed their way.
Why National Black Funding Day Is Needed:
Historically, black entrepreneurs have encountered systemic barriers in obtaining venture capital funding, receiving only a small fraction of the total funding available. Even more concerning is the fact that women of color, a crucial segment of this community, face even greater obstacles in accessing venture capital. A mere 2.2% of venture capital flows to women-owned businesses, with even less directed toward women of color, as reported by the National Women’s Business Council. The inherent racial bias in lending and equity practices has further compounded these challenges, hindering the growth and success of black entrepreneurs. Structural racism and a lack of representation in venture capital-backed firms have perpetuated discriminatory financial practices, exacerbating disparities within the industry.
The recent surge in awareness following the George Floyd racial justice reckoning led to pledges from firms to prioritize diversity and inclusivity. Consequently, black founders witnessed historic gains in securing venture capital funding, signaling the potential for positive change within the industry.
How National Black Funding Day Will Benefit the Community:
National Black Funding Day encourages large corporations and businesses to make donations to black founders and their organizations. This financial support will not only help uplift black entrepreneurs but also pave the way for greater diversity and inclusivity within the funding industry.
Furthermore, this day serves as an opportunity to celebrate the remarkable milestones achieved by black founders and their contributions to the nation’s entrepreneurial landscape. From the emergence of Black-owned VC firms like Opportunity Capital and Urban National Corp in 1969 to the present-day successes of firms like Base10, co-founded by Adeyemi Ajao, with $1.3 billion in Assets Under Management, the journey of black entrepreneurs in the funding industry is one of resilience and determination.
National Black Funding Day, established by Dr. Rashae Barnes, signifies a significant stride toward addressing historical disparities and fostering a more inclusive future in the funding industry. We extend an invitation to all stakeholders, both within and outside the industry, to join us in this celebration of black entrepreneurship and contribute to a more equitable financial ecosystem.
