Black entrepreneurs have long faced challenges in accessing traditional funding, limiting their ability to start and grow businesses. According to the U.S. Chamber of Commerce, 78% of small business owners rely on personal funds to launch their ventures. However, the value of assets held by Black individuals tends to be lower, impacting their financial flexibility. Stock ownership statistics highlight this gap—65.6% of white families own stocks compared to 39% of Black families, with median stock-holding values at $67,800 for white families and $16,500 for Black families. These disparities make it harder to build generational wealth.
One emerging solution is retail investing, which allows individuals to invest in stocks, bonds, mutual funds, and exchange-traded funds (ETFs) without relying on institutional investors. Through brokerage firms, investment advisors, and online platforms, retail investing creates more opportunities for individuals to access financial markets. This shift is making investing more accessible and providing Black entrepreneurs with additional avenues to grow their wealth.
The U.S. Black Chambers, Inc. (USBC) has focused on increasing access to capital as part of its Six Pillars of Service. The recently released Black Investment Report provides a broad analysis of the investment landscape for Black entrepreneurs, emphasizing the importance of asset portfolio expansion. With traditional lending barriers in place, diversifying financial strategies is essential for Black business owners.
Retail investing has played a role in this shift by offering educational resources, simplified investment tools, and options such as fractional shares. These features lower the barriers to entry, allowing more individuals—especially from historically underserved communities—to participate in wealth-building opportunities. However, financial education remains key to long-term success. Expanding knowledge through investment clubs, mentorship programs, and digital platforms can help more Black entrepreneurs gain the skills needed to navigate capital markets.
Beyond individual success, building collective wealth is crucial. Shifting from reliance on external funding to community-driven financial strategies allows Black entrepreneurs to take control of their economic futures. Research from the Brookings Institute suggests that even modest increases in Black stock ownership could help narrow wealth disparities. Nasdaq also highlights that stock market participation remains one of the most reliable ways to grow wealth over time.
The USBC continues to advocate for Black business owners, supporting more than 170 Black chambers and 310,000 Black-owned businesses nationwide. Through resources like the ByBlack Grants List, lending programs with partners such as Lendistry, and corporate collaborations, USBC aims to expand access to capital. For those looking to start their investment journey, understanding the market, utilizing educational tools, and starting with small investments can be effective first steps toward financial empowerment.
Ron Busby Sr. is the President & CEO of U.S. Black Chambers, Inc., advocating for policies and resources that support Black business owners.
