November 1, 2024
The NAACP launched a $200 million initiative to restore the economy through Black businesses.
The NAACP has launched a $200 million initiative to strengthen Black businesses through a focused investment fund.
The new NAACP Capital Fund is a targeted investment in the future of Black businesses, aimed at closing the racial wealth gap and addressing the funding challenges that many Black-owned businesses encounter. The fund aims to shift the economic landscape by focusing on ventures led by Black founders and entrepreneurs.
This initiative underscores the understanding that supporting Black business owners can foster sustainable growth for both the Black community and the larger economy. It was created to reverse trends that have left many Black entrepreneurs excluded from economic growth.
“As an ever-evolving legacy organization, the NAACP knows that innovation is borne out of inclusivity,” said NAACP President & CEO, Derrick Johnson. “Impact investing has the power to drive historic financial returns and uplift overlooked communities.”
“Right now, deeply entrenched systemic barriers are curtailing the innovative progress necessary to breed healthy competition in a global economy. We’re seeking to change that.”
The U.S. Census Bureau reports that while Black-owned businesses make up roughly 10% of all U.S. businesses, they receive less than 1% of venture capital funding. This gap between entrepreneurial ambition and financial backing highlights systemic inequities which the NAACP Capital aims to combat through the fund that serves as a form of reparative economic justice by providing Black entrepreneurs with essential resources for growth and success.
Alongside financial support from the NAACP Capital Fund, Black businesses will gain access to business development services, mentorship, and networking opportunities, equipping them to tackle the challenges of operating in today’s competitive market.
“Investment is the backbone of impact, and impact investing will shape socioeconomics for generations to come,” Johnson said. “It’s time to invest in fund managers who share a forward-looking vision that invests in innovation and technology, ensuring the economy works for everybody, not just a select few.”
This initiative benefits not only Black entrepreneurs but also the entire U.S. economy. Supporting diverse businesses bolsters the market, fuels innovation, and generates jobs.
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