by BLACK ENTERPRISE Editors
March 13, 2025
Collective wealth starts with collective literacy
By Ronald Busby, Sr
Traditional funding barriers have long kept Black entrepreneurs from accessing the assets and opportunities readily available to their white counterparts. Seventy-eight percent of small business owners use their own funds to launch their business ventures, according to the U.S. Chamber of Commerce. Still, assets that Black people hold have lesser value, automatically undermining their ability to start and grow businesses due to longstanding challenges. Stock ownership statistics reveal a significant disparity: 65.6% of white families own stocks compared to just 39% of Black families, per the Pew Research Center. Furthermore, the issue persists across the board as Black families hold more than 75% less in median stock-holding value compared to white families. Case in point, Black families’ median stock-holding value is $16,500, while white families have $67,800. How, then, are we supposed to increase our wealth when we have so little to begin with?
One emerging solution is retail investing. Unlike institutional investing, retail investing is done by non-professional investors who purchase assets, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). These individuals go through investment advisors, brokerage firms, or investment platforms and leverage outsourced expertise to assist in investment decisions. Retail investing puts more power in the hands of the individual and looks to make the market more accessible for all.
One of the U.S. Black Chamber, Inc.’s (USBC) Six Pillars of Service is access to capital, and we used that pillar as the backbone of our research for our recently released Black Investment Report. The report takes a holistic view of the investment landscape for Black entrepreneurs and informs our understanding and approach. Given the realities of accessing capital as a Black person in this country, the Black Investment Report makes it abundantly clear how important asset portfolio expansion is for Black business owners.
Today, the democratization of retail investing makes wealth-building tools more accessible, empowering individuals to invest in their futures. Retail investing platforms, financial education initiatives, and increased mentorship opportunities have played a pivotal role in expanding access to capital markets. These platforms provide user-friendly information, educational resources, and features like fractional shares that make investing feel less out of reach. By lowering barriers to entry, they’ve opened up opportunities for more people, especially those from historically underserved communities, allowing them to participate in those wealth-building avenues.
That access is just one piece of the puzzle. By collectively moving away from asking for capital to creating it, Black entrepreneurs are doing what they have always done—finding innovative ways to fund their dreams. When the systems in place work so hard to gatekeep, we must make the switch to self-directed and community-based wealth building.
By shifting away from traditional funding models, Black entrepreneurs are carving out innovative paths to success. Black people are under-indexed in businesses, stocks, bonds, and other assets that can increase their net worth. Despite these shortcomings, projections show that even modest increases in Black stock ownership could significantly narrow wealth disparities (Source: Brookings Institute).
“Research illustrates the stock market, even with all of its ups and downs, remains the most reliable and most effective way to increase wealth over time.” (Source: Nasdaq) By levering the power of capital markets, Black entrepreneurs are rewriting the narrative and creating ripple effects for their communities and future generations. That community impact shows the importance of looking beyond individual success. We are only as strong as our most disenfranchised, so we must work to build collective wealth.
Collective wealth starts with collective literacy. We must do more to educate aspiring Black entrepreneurs about stock market participation to empower them. In addition to retail investing platforms that make information more accessible, investment clubs and mentorship programs are opportunities to bring that information to life. There’s more than one way to learn about and access capital markets, and utilizing different avenues diversifies your knowledge base in a way that will only benefit us all in the end.
The Call Forward
As the President & CEO of the USBC, I advocate for the more than 170 Black chambers and 310,000 Black-owned businesses we represent nationwide. USBC prides itself on its resources and partnerships crafted to support Black entrepreneurs with the unique challenges they face. One of our Six Pillars of Service is access to capital, and we used that pillar as the backbone of our research for our recently released Black Investment Report. The report takes a holistic view of the investment landscape for Black entrepreneurs and informs our understanding and approach. We are committed to an equitable and just world full of wealthy Black businesses, individuals, and families and will lead the charge to ensure this vision is realized.
Here’s how you can start your investment journey:
Get to know the market. USBC offers a resource deck featuring lending programs like our partnership with Lendistrythe ByBlack Grants Listbusiness development support, corporate and government resources, and more.
Education is key. Retail investing platforms provide up-to-date resources, allowing you to stay on top of the fast-paced world of investing. Platforms like Robinhood, one of our corporate partners and one of the most well-known companies operating in this space, is one of many options depending on your goals.
Start small. When it comes to investing, every bit counts. Purchasing even fractions of shares will help you gain the experience necessary to invest confidently.
Ron Busby Sr. is President & CEO of U.S. Black Chambers, Inc., the national voice of Black business and a top advocate for resources and policies that impact Black business owners.
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