The huddles this week focused on the racial barriers to accessing capital, how we see the impacts within our work, and how we can make progress.

Black Lives Matter.

o The negative impacts of bias and prejudice permeates all aspects of society. At the Food Finance Institute our mission has always been to increase access to capital for everyone, which necessarily means recognizing and striving to overcome the barriers that have historically made access unequal for people of color.

• Talking Points
  • Increasing access to capital for people of color:
    • Economists continue to show race is highly correlated with access to capital
    • Finance is the most in FFI’s wheelhouse, what is it that we can (all) do to actively work to increase access to money?
    • Key barriers for people of color – to be aware of and intentionally address
      • Stratification economics – Derrick Hamilton | Article
        • Resumes with black or ethnic sounding names are less likely to get interviews
        • People of color are steered toward more expensive sources of capital (mortgages, auto loans)
        • Socioeconomic barriers such as healthcare access and underperforming schools
      • Financial literacy including but not limited to understanding (and building) credit
  • Changing Company Culture: look within your organization and business
    • It’s not just economic, it’s a culture thing. “It feels like it’s in the walls.” It is hard to change company culture without serious intent.
    • Changing Company Culture Steps (written for business leaders)
      • Recruit new employees to promote cultural change
      • Define the culture you want to have, the values and behavior starting at the top
      • Increase visibility of cultural benefits (highlighting the benefits throughout)
      • Culture change champion in the organization (leader at the top is best)
      • Recognize the new culture in action, as it is happening
      • Teach your execs and managers to lead by example
      • Align culture with processes and business strategy, embed culture within how you operate your business
      • Define non-negotiables (things you will not accept)
      • Measure your efforts – manage what you measure
      • Don’t rush but always strive for continuous improvement.
        • It can take 2-3 years to change company culture and it usually needs a new executive team and a new CEO
• Observations from Our Work
  • We get to meet people where they’re at
    • Dense and customized content in our trainings
    • People are ready to learn what they’re ready to learn and we’re not to judge who’s ready
    • Don’t dumb content down for anyone, teach what needs to be known
  • Collaborate to bring our work to where it’s needed
• Perspective: Cheryl Mitchell, WI SBDC UW-Milwaukee Business Consultant | Bio
  • What do you think about access to capital for black entrepreneurs?
    • Looking at most of my clients, some have been in business for a while and can get capital from a bank, others cannot mostly due to lack of knowledge on the importance of a credit rating. Many grew up in cash only households, no credit. This can prolong their access to capital by years which is tough for a business owner to hear. Resilient ones can figure it out, but they may not grow as much as they could with access.
  • There is a real problem with lack of having a network and within existing networks, having diversity – relationships matter and are square one.
    • It’s a struggle to get people to talk to people not in their circle.
    • People often default to talking to people they already know.
    • Take the step and talk to new people! Sign-up and show up in order to see a change.
    • Social media has opened doors to finding investors but getting the meetings can be difficult if you’re not already in their network.
    • Utilize conferences.
    • Investors need to step up – respond to those who reach out to you outside of your network but be honest with what you do and what you’re interested in when making responses.
    • If you don’t have a personal relationship with a banker, you don’t getcalls back.
      • CDFI’s can help this issue however it’s a lending relationship, not a banking relationship.
    • Be mindful of your surrounding communities. It takes effort and courageto talk to new people but it’s still very simple to make an introduction.
  • Credit programs – Many want personal attention which is the downfall. People want someone to listen to them, they don’t want to be lectured at.
    Tips & Next Steps
• What we do as consultants is so important, as we work with people and we can make differences in their lives and within communities. A lot of this is not about money but a lot of it is, so we get to work on it, together!
  • Be mindful of your surrounding communities
    • It takes effort and courage to talk to new people but it’s still very simpleto make an introduction.
  • Lead by example
    • Improve company culture
    • Encourage investors to make relationships outside of their network
• Check out Starbucks’ anti-bias training that is available free online: https://tobewelcoming.com/. After their very public embarrassment on race a couple of years ago, they partnered with Arizona State to develop this training which was given to all of their employees, current and future.
• Read this analysis regarding racial economic disparity exacerbated by COVID19 https://www.policylink.org/our-work/economy/national-equity-atlas/COVID- workforce#policy