Investing in Black Business and the Best Ways You Can Fund Racial Justice

Investing in Black Business and the Best Ways You Can Fund Racial Justice

There is more than one way to fight the good fight and one great way is to put our money where our mouth is and before you know it, not only have you helped these businesses but have allowed you to be successful as well.

investing in black business

We all know that racism is a huge problem in the United States.

But the social climate has changed over the years with many anti-racism movements such as Black Lives Matter changing the landscape for all.

These movements have forced the police and state and local governments to change their systems and policies to allow for more fair and equal treatment of all people regardless of race.

The truth is, however, the fight is not yet over, and there are still many injustices seen when it comes to racial profiling and segregation. 

For most of us, we think that the only course of action for us to make changes is through activism and protests.

But there are other ways where you can actually make a change and one of them is through investing in black business or businesses owned by people of color.

So if you want to make a change, one of the best ways is to actually fund a black-owned business.

If you want to learn more about how you can fund racial justice, read on.

1. Investing in Black Business or Black-Owned Business and Funds That Work to Support Social Justice

investing in black business

One of the most direct ways to fight against racism and racial injustice is by directly investing in black business or business that is run by African-Americans and other people of color.

By funding these businesses, you allow many of them to prosper and actually make a name for themselves.

Racist groups and institutions have used poverty as a tool for them to put down other races they have deemed inferior.

We know that there is power and influence with wealth and since a vast majority of those belonging below the poverty line are from people of color, funding businesses run by them help raise them to a level of influence where their voice can make a difference.

Furthermore, there are businesses and organizations like black-owned investment firms that actually put it as part of their mission and vision to fight social injustice and assist minorities in finding work, legal aid, and general uplifting of their economic status.

It will definitely not be hard to find a black business to invest in as there are many groups out there.

These businesses also need your help so that they can continue operating and doing what they can for society.

There are many black-owned companies that are listed in the stock market and a bit of research will also yield results in companies that you can invest in.

You also have the option to go for mutual funds such as the NACP ETF that tracks the Morningstar Minority Empowerment Index and gives a spotlight to businesses that fall under the guidelines of the National Association for the Advancement of Colored People or NAACP.

With so many options, it’s full hardy not to invest in these companies.

2. Peer-to-Peer Lending

It is no surprise to anyone that many financial institutions have overlooked underprivileged minorities when it comes to loans and financial assistance.

In fact, in many cases minorities even got higher rates or premiums or even got flat out denied compared to Caucasians of the same social and economic status.

This is why financial institutions like SoLo Funds allow these underprivileged groups access to much-needed loans which are often used as capital for setting up businesses.

Borrowers are able to set their own terms for loan repayment and are usually not subject to an approval process as it is at the discretion of the lender.

Lenders on the other hand benefit from these P2P loans as they are generally not connected to the stock market so it is often described as a good way to help underprivileged communities to get access to capital that may mean success for individuals and families.

Investing in black business like these is a great way to support not only black communities but allow you to enjoy in their success.

There are some risks involved including the borrower not being able to pay back the investment but this is why it is suggested that you invest in small amounts and with different people in order to diversify as much as possible and minimize risks.

3. Put Your Money in Companies That Support Racial Justice

investing in black business

There are many public companies that donate their money and profits to fight racial and social injustice.

These companies are very public about their stance against racism and have pledged a lot of money to support anti-racist movements today.

By putting your money in them, you are sending a message to these companies that you support their decision and that you wish for them to continue.

It also signals to everyone else that this is a stance that you are willing to stand up for.

Now you may not find huge returns in a black investment compared to being an actual stockholder but you know that the money spent is going towards a great purpose.

What’s important is you do your research by checking the company’s website, their social media, and the team they have to know if you are completely aligned with their beliefs before putting your money into them.

4. Look Into Startup Companies and Real Estate Crowdfunding

One way you can get started in investing in black business is by looking at supporting startup companies and real estate crowdfunding platforms.

Why is that? Well, many people of color are behind these startup companies, and investing in them can mean the difference between success and failure.

This may also be just what these need for these people of color to find success. Remember that by helping them succeed, you allow them to gain a voice in society which in turn gives more credence to the movement for racial justice.

This is definitely another way for you to find a black business to invest in.

Real estate crowdfunding sites on the other hand are great to put money into.

These platforms often work towards improving communities that are historically occupied by black people and other people of color.

Their goal is to bring these communities out of poverty and improve the standard of living of these locations while fighting against gentrification which has often pushed out poor black communities.

This is a great black investment that can work towards the overall improvement of the way of life of people of color.

Investing in black business like these though carry greater risk, so research is always good, and make sure that you don’t put all your eggs in one basket.

5. Choose a Different Bank

investing in black business

Remember that putting money in a bank is a sort of investment as these banks often use your money to invest in different ventures to make money for the financial institution.

If your bank is not meeting your needs or are shopping for a different bank, then you should thoroughly consider a black-owned bank or black-owned investment firm.

These institutions are run by black people and are more open to providing services to people of color which is an oasis in a predominantly white industry. 

Final Thoughts

Investing in Black Business is the way to go if you really want to support the cause and fund racial justice.

We all know that the fight against racism is a long road but even the strongest and most influential activists and protestors need money to operate.

If we want to truly help, let’s put our money into these groups and groups that are working towards the social and economic improvement of people of color.

There is more than one way to fight the good fight and one great way is to put our money where our mouth is and before you know it, not only have you helped these businesses but have allowed you to be successful as well.

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Author: John Benares

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