New Report Shows The Importance Of Investing In Black Entreprenuers
Stackwell and the Michigan Black Business Alliance (MBBA) released a report that examined how access to investment, education, and behavioral tools affects the financial outcomes of Black small business owners. The new report, titled “Building Personal Wealth: Empowering Black Small Business Owners Through Investing,” was published by the Financial Health Network.
The report builds on findings from the 2024 Small Business Investing Program (SBIP), where eligible MBBA members received funded investment accounts through the Stackwell investing platform, along with educational resources.
How barriers block wealth for Black entrepreneurs
Small Black-business owners face significant barriers when entering the world of entrepreneurship, such as restricted access to small business loans or personal wealth. The Small Business Investment Program (SBIP) aimed to create more opportunities for Black entrepreneurs.
“Black households own just 4.7% of total U.S. household wealth, while white households own 80%.2 These stark differences emphasize the need for solutions that can help all Americans build wealth and long-term financial resilience,” it said in the report.
“This program allowed us to equip Black entrepreneurs with the tools and confidence to see investing not as a luxury, but as a necessity,” Charity Dean, President and CEO of MBB, said in a press release.
“The insights from this report confirm what we’ve always known: when you invest in the financial empowerment of Black business owners, you unlock not just individual success, but generational opportunity.”
Key findings in the report
- The balances of the participants increased during the study, with an average balance of $1,838 by the end of the study.Â
- 20% of participants made at least one deposit of their own money during the study period.
- 75% did not withdraw any funds from their investment accounts during the program, highlighting a commitment to long-term investing.
- Many survey respondents lacked prior investing experience, with 31% reporting they had never invested before.
“This report affirms the impact of Stackwell’s playbook – when we meet people where they are, with the right tools and support, we can build financial strength and intergenerational outcomes. We are not only investing in entrepreneurs and their businesses but helping our communities thrive,” Trevor Rozier-Byrd, Founder and CEO of Stackwell, said.
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