Goldman Sachs — Leading global financial institution Goldman Sachs has taken its mission to new heights with a massive investment.
The company is investing more than $2.1 billion into Black women-owned businesses and nonprofits in the One Million Black Women program.
Asahi Pompey, the global head of corporate engagement and president of the Goldman Sachs Foundation, released a statement regarding the program.
“Goldman Sachs is sending a powerful signal into the marketplace around Black women and saying there has been a misalignment of capital, in terms of capital dedicated to this group,” said Pompey.
“We’re seeking to change that by putting our capital where our mouth is.”
One Million Black Women was launched in March 2021 to positively impact the lives of 1 million Black women by 2030.
Goldman Sachs committed $10 billion in investment capital and $100 million in philanthropic capital.
The investments are focused on access to the following:
- Affordable housing
- Digital connectivity
- Financial health
- Job creation
- Workforce creation
“Turbo boosting Black women entrepreneurs is a key part of the work that we do,” said Pompey. “We know they create jobs.”
“When a Black woman entrepreneur is able to grow her business, she employs Black people in that community, she’s a leader in that community, she mentors individuals in that community.”
“The ripple effect of investing in a Black woman entrepreneur is tremendous.”
Milestone and deployment
On Monday, the group convened with its advisory council, which includes the following:
- Obama Foundation CEO Valerie Jarrett
- Walgreens Boots Alliance CEO Roz Brewer
- Former Secretary of State Condoleezza Rice
- Actress and producer Issa Rae
- National Urban League President Marc Morial
The group announced its $2.1 billion milestone and the $23 million in philanthropic capital to assist an estimated 215,000 Black women.
“When Black women succeed, America succeeds,” said Jarrett.
“You bet on Black women, that is a good bet. Goldman Sachs recognizes that and that Black women have a track record of delivering.”
According to Jarrett, the project isn’t just an investment capital.
“It’s a holistic approach,” she said.
“What we are able to do uniquely is first to listen, meet people where they are, figure out what those needs are and then provide the resources and the expertise to help women thrive.”
Closing the gender wealth gap
Goldman Sachs economists found that investing in Black women is the most effective way to close the racial wealth gap.
The gap describes the imbalance in wealth between Black and white households in the United States.
According to William Darity Jr, the director of the Samuel DuBois Cook Center on Social Equity at Duke University, the gap is estimated to be around $14 trillion.
Goldman Sachs economists said that closing the gender pay gap for Black women could increase domestic product, going from $300 billion to $450 billion and creating around 1.2 million and 1.7 million jobs in the country.
“The past two years have confirmed a key insight of our research,” said Goldman Sachs CEO David Solomon during the advisory meeting.
“By investing in businesses that help Black women advance, we can build a strong economy for everyone.”
“Our firm has a long history of supporting economic empowerment and we’re proud that One Million Black Women is already making a difference.”
New York funding
Eric Adams, the mayor of New York City, attended the meeting for updates on One Million Black Women initiatives the city has collaborated with.
Among their initiatives is a $75 million investment in the NYC Small Business Opportunity Fund, which is designed to fund Black female entrepreneurs.
“We get this right, we will stop feeding the other issues,” said Adams. “Sometimes we stay in crisis mode instead of planning mode.”
“What these women are doing about childcare issues, healthcare issues, support to build businesses will prevent things from turning into a crisis. That’s why we wanted to be here.”
According to Dina Powell McCormick, Goldman Sachs’ global head of sustainability and inclusive growth, launching One Million Black Women during the pandemic led to a unique challenge.
“You are seeing a huge focus now on using the lessons learned from the digital divide and turning that into a huge opportunity,” said McCormick.
“We see what we learned all these years reaching a critical mass now to invest in this program.”
Goldman Sachs is launching a program to support and provide resources for Black female solo entrepreneurs called “OMBW: Black in Business.”