Building inclusive economies

Despite growing recognition of the importance of Black entrepreneurship, Black-owned businesses remain underrepresented in high-growth sectors and undercapitalized relative to their peers. Traditional financial institutions often fail to meet the needs of Black entrepreneurs due to risk-averse lending practices, limited cultural competency, and a lack of relationship-based models. CDFIs, particularly those with a mission-driven focus, have emerged as critical intermediaries—but their reach, capacity, and impact vary widely.

On November 12, the Brookings Institution will host an event to discuss the potential of community-based financial institutions in expanding Black business ownership, and how doing so can drive greater economic security and increased well-being across geography and race.