As part of our commitment to advancing racial equity, EDAM will be highlighting excerpts from the International Economic Development Council’s
Playbook for Equitable Economic Development throughout the year. The following excerpt illustrates the importance and urgency of this topic.
- In 2019, the median household held almost eight times the net worth of the typical Black household.
- In 2019, only 3% of all SBA loans went to Black-owned small businesses and 7% to Hispanic-owned small businesses.
- Just 18.3% of small businesses with employees are owned by people of color and only 2.2% are Black-owned.
These statistics reflect how institutions, processes, and transactions leave people of color behind economically. The first step to ameliorating this imbalance in wealth is to understand the roots and patterns of structural, or systemic, racism. This can help us to not repeat the same mistakes and instead create a path of greater racial equity moving forward.
Economic development has played a role, even if inadvertently, in perpetuating inequality. Yet economic developers can be part of the solution, working to reduce barriers and increase opportunities for communities of color through the more equitable distribution of wealth in these communities.
Read Full Playbook
The International Economic Development Council (IEDC) is a non-profit, nonpartisan membership organization serving economic developers. With more than 4,500 members, IEDC is the largest organization of its kind. Learn more at www.iedconline.org.