Many black-owned enterprises have emerged in the United States over the previous decade. Although it was stated that black businesses were disproportionately affected during the pandemic’s peak, several shown tremendous resilience in order to stay afloat.
Aside from the epidemic, black entrepreneurs and other minority-owned enterprises have had difficulties in getting funds to develop their operations. According to one survey, less than 1% of blacks receive venture capital funding.
Several efforts have occurred in this regard to assist minority founders in raising funds. Macy’s is one example. According to the New York Times, the firm is the largest department store in the United States.
According to the New York Times, the American department store giant aims to invest $30 million over the next five years in three financing channels to help firms managed by people from under-represented groups in the retail industry.
Macy’s is collaborating with Momentus Capital, which will supervise the loan fund, to do this. According to the Times, the retail giant stated that the total funding for these activities will be $200 million.
The platform adds that money will be given in the “form of a loan for working capital and commercial real estate, as well as growth equity capital.”
“With a lot of these ventures, they’re starting points in helping. We have to just see with time,” said Jessica Ramírez, a retail research analyst at Jane Hali & Associates.
Furthermore, the shop has signed the 15% Pledge, which asks retailers to give 15% of their shelf space to merchandise from Black-owned businesses. Since then, the number of black-owned businesses has expanded more than eightfold, according to the firm.
“We have emphasized a holistic approach in regard to supporting Black businesses, meaning that we work closely with retailers to identify opportunities, beyond just expanded shelf space, to break down barriers that have systematically held back Black entrepreneurs,” LaToya Williams-Belfort, the executive director of the 15 Percent Pledge, told the Times.
Beyond injecting cash into minority own businesses and the 15 Percent Pledge, Macy’s has trained 200 entrepreneurs for over 10 years.