Goldman Sachs’ 1 Million Black Women Announce First Investment

goldman sachs Investing more than $2.1 billion in Black women-owned businesses and nonprofits through investment banking. 1 million black women program — and leaders say it’s just the first chapter.

“Goldman Sachs sends a strong signal to the market that centers on black women, arguing that there is a capital imbalance in terms of capital dedicated to this group. We are trying to change that by putting our capital where our mouth is,” Asahi Pompei, global head of corporate engagement and chairman of the Goldman Sachs Foundation, told CNBC.

One Million Black Women was launched in March 2021 with the ambitious goal of positively impacting the lives of one million black women by 2030. Goldman Sachs committed $10 billion of investment funds and her $100 million of philanthropic funds, with a focus on access to capital. , affordable housing, healthcare, education, job creation, workforce advancement, digital connectivity, and financial health.

“Empowering the growth of Black women entrepreneurs is an important part of our work,” Pompey said. “We know that they create jobs. When a Black woman entrepreneur is able to grow her business, she employs Black people in her community, is a leader in that community, and is a leader in that community. You will be mentoring individuals in your community. The Ripple Effect of Investing in Black Women” Entrepreneurs are amazing. ”

The organization announced Monday that Obama Foundation CEO Valerie Jarrett, Walgreens Boots Alliance CEO Roz Brewer, former Secretary of State Condoleezza Rice, actress and producer Issa Rae, and National Urban League President Mark Mark We held a meeting of the advisory committee, which included Morial and others, and made a presentation there. In addition to the $2.1 billion milestone, there will be $23 million in philanthropic funding to support an estimated 215,000 Black women.

“When Black women succeed, America succeeds,” Jarrett of the Founding Member Council told CNBC. “You’re betting on black women. It’s a good bet. Goldman Sachs recognizes that, and recognizes that black women have a track record of making that happen.”

Jarrett said the initiative is “not just about investment capital.”

“This is a holistic approach,” she said. “What we uniquely do is first listen to people, meet them where they are, understand what their needs are, and then provide the resources and expertise to help women thrive. ”

Economists at a global investment bank have discovered that the most effective way to close the racial wealth gap is to invest in black women. The racial wealth gap represents the wealth gap between black and white households in the U.S. and is at least $14 trillion in size, according to William Darity Jr., director of the Samuel DuBois Cook Center for Social Equity at Duke University. It is estimated that the amount will reach US$.

According to Goldman Sachs economists, closing the gender pay gap for black women would increase gross domestic product by $300 billion to $450 billion and create 1.2 million to 1.7 million jobs in the United States. There is a possibility that

“The past two years have confirmed the key insights of our research: By investing in companies that help advance Black women, we We can build a strong economy for people,” she told the One Million Black Women Advisory Council. “We have a long history of supporting economic empowerment and are proud that one million Black women are already making a difference.”

New York City Mayor Eric Adams also attended Monday’s meeting to hear an update on the city’s One Million Black Women initiative. New York City Small Business Opportunity Funddesigned to provide funding to Black women entrepreneurs.

“We get it right. Let’s not bring up other issues,” Adams told CNBC. “Sometimes we stay in crisis mode instead of planning mode. The work they do on child care issues, medical issues, and helping them build their businesses will keep things from turning into a crisis. That’s why. We wanted to be here.”

Still, Dina Powell McCormick, global head of sustainability and inclusive growth at Goldman Sachs, said launching 1 Million Black Women in the midst of the coronavirus pandemic was This has created unique challenges.

“There’s a lot of focus right now on leveraging the lessons learned from the digital divide and turning it into a big opportunity,” said McCormick, who also previously headed Goldman Sachs. 10,000 small businesses and 10,000 women initiative. “We believe that what we have learned so far is an important amount to invest in this program.”

Goldman Sachs is launched “OMBW: Black Business” A program that provides support and resources specifically for Black women solopreneurs. Applications are being accepted for students entering fall 2023 until April 23rd.