New data shows wealth-building assets for Black Americans — including ownership of businesses and stocks – grew steadily over three years.
New data shows that wealth-building assets for Black Americans and families, including family-owned businesses and stocks, grew steadily over three years.
He added that many Black Americans may have used the extra time to expand side hustle businesses, with some even making them full-time jobs. He said COVID gave African Americans more time to reflect on their lives. He said this included people considering whether their primary employer really valued them and the Black community after the George Floyd murder and subsequent national protests. He said those sentiments could have prompted Blacks to launch businesses.
Further, Black business ownership may have risen as more people obtained financing in recent years as lending from the Paycheck Protection Program run by the U.S. Small Business Administration and other programs led to an increased ability to get some level of financing.
“Market conditions were good, with positive gains over the period. In addition, there were more paths to stock ownership, including IRAs, retirement plans, and mutual funds, with more and easier ways to purchase mutual funds,” Cunningham said.
Regarding homeownership, Cunningham said more work needs to be done by public and private sector institutions to make a meaningful change in Black homeownership. However, he said the Fed’s latest numbers show improvement in that category.
Source: Black Enterprise