Lack of Diversity in Business Investment
Photo by Gemma Chua-Tran on Unsplash
In our studio work with minority owned businesses have really opened our eyes to one huge problem with the market!
The business world is full of opportunities for investors, but minority-owned businesses are often left out of the equation. A lot of great business and ideas that come through our door have a significant issue with scaling because of the unequal playing field.
Despite efforts to promote diversity, research shows that investors tend to favor businesses owned by white males. This shit is just sad. Because, a lot of these ideas area amazing and products being built can really impact communities and business markets. We gotta fix it, ASAP!
What’s the Problem?
Investors may believe that they are being fair and impartial, but studies show that unconscious bias can lead to unintended discrimination. This is particularly true when it comes to race and gender. Despite increasing awareness of these issues, minority-owned businesses are still at a disadvantage.
So, Diversify your Portfolios
“Diversify your portfolio” I have heard that a million times. I guess I am just too naive to think that this phrase would resonate beyond personal financial gains.
Diversity is more than just a buzzword. It has real, tangible benefits for businesses and investors alike. Studies have shown that diverse teams are more innovative and creative, and are better able to solve complex problems. This can lead to better performance and increased profits for businesses.
Just own up to that Sh*t!
So, what can be done to address this problem and promote greater diversity in business investment? Here are some steps that investors can take:
Acknowledge the problem: Investors need to recognize that there is a lack of diversity in business investment, and that this is a serious problem.
Educate themselves: Investors should educate themselves about unconscious bias and how it can lead to unintended discrimination.
Be proactive: Investors should actively seek out minority-owned businesses and consider them as viable investment opportunities.
Diversify their portfolios: Investors should strive to create diverse portfolios that include a variety of businesses owned by people of different races and genders.
Partner with diverse firms: Investors can partner with firms that are committed to promoting diversity and inclusion in their operations.
We all win at the end
I want us all to win. I see so many wonderful businesses and ideas die out because of underfunding. New ideas can create new business magnets. It could mean more employment and affordable way of living. Aren’t you tired of having to refinance your mortgage every time you want to buy a f***in avocado?
