The wealth gap in the United States is due to a history of systemic racism, and it's no surprise that this has had a huge impact on black-owned businesses. Despite the challenges, some black-owned businesses have become public companies. But how many black companies are on the stock market?According to the Washington Post, since the inception of COVID, ownership and black businesses on Wall Street have fallen more than 40%. This means that out of the 4,000 publicly traded companies on the New York Stock Exchange, only 0.003% are black-owned.
That's just 12 companies!Below are some of the largest black-owned publicly traded companies, organized by total assets. Carver Bancorp (CARV) is the holding company of Carver Federal Savings Bank, a federally authorized savings bank. Founded by a group of community leaders and small business owners in 1948, Carver provides commercial and consumer banking products and services to traditionally underserved African American communities. The Treasury Department has designated the bank as a Community Development Financial Institution (CDFI), due to its dedication to serving those who would otherwise be excluded from the financial system. The National Minority Supplier Development Council (NMSDC) states that minority ownership means that the company is owned by at least 51% of such persons or, in the case of a publicly owned company, at least 51% of the shares are owned by one or more of those persons (i.e.
management and day-to-day operations are controlled by members of minority groups).The McKinsey report found that the average annual wage of black workers is about 30% lower than that of white workers, and that 3.5 million of black households in the country have negative net worth. Certified financial planner Malcolm Ethridge, financial advisor to Rockville, Maryland-based CIC Wealth Management, also cites the impact student loans have had on the ability to invest. Saporu also sees that people are hesitant to enter the stock market because they are afraid of risk. Besides, African-Americans don't see many financial experts who look like them, he said. One way to combat racial investment and wealth gaps is for companies to step up, Ethridge believes. Instead of spending money on research on the gap, they should invest that money in the communities that need help the most. Providing local services or community services goes back to segregation, when you couldn't necessarily go and open a business downtown if you were a black person, so you had to look for businesses that could operate within your own community, Wills explains. In addition to the disparities between black and white stock owners, opportunities to invest in black-owned businesses through public bargaining remain slim.
Approximately 44% of black business owners rely on cash to finance their businesses, compared to 37% of the average small business owner. And even in these sectors, white companies still tend to earn more than competing black-owned businesses. Despite defining what constitutes a minority-owned public company, the NMSDC does not provide any concrete data on the number of active black-owned public companies in the U. S.And while the NMSDC does not explicitly state how many black-owned public companies there are, many companies are transparent about who is on their executive board. In Partnership With Black-Owned Private Equity Firm Cádiz Capital Holding, Joe Cecala Launches Dream Exchange To Give Business Owners Of Color The Opportunity To Build Strong Wealth With The Help Of The U. S.
Investor Public. You can find a directory of black financial advisors through the Association of African American Financial Advisors. Black firms are most often found in industries with lower income potential, including hair salons, child care, home health services, cleaning services, and barbershops. And according to Centers for Disease Control and Prevention (CDC), approximately 100,000 Americans are living with sickle cell disease (SCD); one in 365 black children is born with this genetic disorder. Not only have these companies each made history in their own way, but they have left an impact on many lives and will continue to do so for generations to come. Do you have any confidential news? We want to hear from you. Get this delivered to your inbox and learn more about our products and services.