Building Black businesses key to closing racial wealth gap across Mass.

BOSTON — This week marks the end of Black Business Month but the effort to close the racial wealth gap continues.

A 2015 report by the federal reserve bank of Boston found the average net worth for a black household in Boston is just 8 dollars…compared to the 247-thousand net worth for white households.

Closing the racial wealth gap across the commonwealth begins with building black businesses, says Nicole obi…executive director of the black economic council of Massachusetts.

“”We find that out black business owners are actively engaged in supporting and giving back to the community. And so by helping a black owned business, you’re helping not just helping that business owner, but their employees and communities that they live in.“”

Obi says if the state can close its racial wealth gap, the Massachusetts economy will grow by $25 billion in just five years.

One focus has been state and local contracts.

Obi points to a 2018 city of Boston disparity study.

“What was found that at the time, while the city spent $2.1 billion only point-2 percent of it went to black and latina owned businesses. That’s systemic. That type of result.””

BECMA is working with the governor’s office and four specific municipalities on addressing the inequities in the government contracts on better outreach and improved procurement planning.

Their mass black expo is September 23rd and 4rth.

It’s another opportunity to highlight black businesses and connect them with capacity building resources.

This is a developing story. Check back for updates as more information becomes available.

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