The opportunity cost of fear: Underfunding Black founders hurts the US economy

Racism has cost the United States at least $16 trillion, according to a 2020 report from Citibank. Moreover, if racism was eradicated, the report suggested, the US economy could gain an additional $5 trillion. With the US GDP currently around $27 trillion, these dollar amounts are not insignificant. Yet despite these vast losses, individuals and organizations continue to find ways to marginalize a valuable resource for America — Black founders. Over 4 million new business applications were filed in 2020, according to the US Census Bureau, almost a million more than the previous year. Women and Black founders overwhelmingly created the new businesses: in 2020, 11% of new business owners were Black or African American, compared with 3% in past years. And in 2021, Black-owned businesses grew by 14.3%, Census data shows, with the highest revenue growth, payroll, and average number of employees of any other demographic group. These statistics demonstrate the significant economic contribution and impact Black business owners create. Unfortunately, not everyone is supportive of this news. The increase in attacks and lawsuits against Black organizations or those serving people of color signals a scary sentiment. The American Alliance for Equal Rights and America First Legal, both conservative...