When Citigroup pegged the cost of systemic racism to the U.S. economy over the last 20 years at $16 trillion, by far the largest portion was attributed to a failure to equitably invest in Black entrepreneurs — amounting to an opportunity cost of $13 trillion, according to the 2020 report.
Melissa Bradley, founder and managing partner at 1863 Ventures, a Washington, D.C.-based business-development nonprofit that works with historically marginalized entrepreneurs, said the data helped fuel a push to invest in Black and brown entrepreneurs through venture capital funding, diversifying corporate supply chains and other avenues.
“Even if you don’t believe in helping these communities, you cannot overlook the fact that there is a significant amount of opportunity cost plaguing our economy that causes a shift in how we make investment decisions,” Bradley said in an interview with “Marketplace Morning Report” host David Brancaccio.
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