How DEI backlash is hurting Black-owned businesses

June 26, 2024 at 11:47 AM Getty Images As negative perceptions around diversity, equity, and inclusion surge, Black businesses are seeing the heightened support post-George Floyd wane, specifically investment opportunities and access to capital. This trend is particularly noticeable to Black midsize business owners, according to a qualitative survey from Wells Fargo analyzing the opportunities and challenges Black middle market business leaders face. The companies in the Wells Fargo survey had annual revenues ranging from $20 million to $500 million. Moses Harris, Black/African American segment leader for Wells Fargo commercial banking, emphasizes the potential of Black-owned middle market companies. Despite their current rarity, these companies are among the fastest-growing in an overlooked but incredibly powerful part of the economy. Their 17.7% year-over-year revenue growth from 2022 to 2023 significantly outpaced the total middle market’s 12.4%. Supplier diversity programs, designed to actively seek out suppliers and service providers certified as minority business enterprises, have been a key driver of their success. That’s become less true as DEI backlash—both willingly and unwillingly—stunts large companies’ efforts to grow diversity in their supplier base. Another contributor to the private sector’s diverse business pullback is the realization that investing in minority-owned companies is a long-term...