Addressing the racial wealth gap

Black and Latino households in the U.S. earn about half as much as the average white household and possess only about 15% to 20% as much net wealth, according to the U.S. Federal Reserve. The gap has only increased over time as median wealth has increased exponentially for white families and stayed relatively stagnant for families of color. 

One Chatham County-based nonprofit is working to create a “living ecosystem of support” for Black and Brown entrepreneurs. Known as WEBB Squared and founded in 2021, the organization is actively addressing racial wealth gaps and financial inequity among marginalized individuals and communities. 

Stephanie Terry is the nonprofit’s executive director.  

“WEBB Squared is a N.C. nonprofit created to support Black entrepreneurs living in rural North Carolina,” Terry said at the organization’s opening in 2021. “Our infrastructure helps mitigate the structural obstacles that Black entrepreneurs face by providing support.”

Terry was inspired to start WEBB Squared after reading the 2019 Survey of Consumer Finances data from the Board of Governors of the Federal Reserve System. The study showed the average Black household in America has $24,100 in wealth, while white households average $189,100 in wealth and assets.

“Policies and legislation that have historically disadvantaged Black Americans have been passed down through generations and inform the starting points of Black entrepreneurs,” Terry said. “To really get at closing the racial wealth gap, we need to have a structural, systemic impact — one that involves entire business ecosystems. We have inherited, and in many instances are maintaining, race-based arrangements with race-neutral solutions. To really make an impact that addresses disparate outcomes, we must be intentional about race.”

WEBB Squared offers a variety of programs, ranging from individualized coaching sessions to financial advising. The nonprofit also offers something called the “Mindset Program,” which serves as a mentorship opportunity for Black entrepreneurs, according to the WEBB Squared website.

“Our unique trainings are designed to assist the Black entrepreneur realign with powerful universal principles that expand the natural abilities of human beings to attract and create more desirable results,” according to the website.

“The racial wealth gap grows from centuries of a systemic race-structured economic order embedded in institutional culture, policies, social norms and belief systems,” Terry said. “Informed by this reality, we understand people of color require intentional services, resources and opportunities for wealth building.”

Chatham County is experiencing unprecedented economic growth — in fact, it has been dubbed one of the top 10 fastest growing counties in the state. According to demographic data, Chatham’s population has grown exponentially over the last 30 years, and it’s not slowing anytime soon. The county’s growth rate of 95.7% from 1990-2020 surpassed the state average of 57.1% over that same span. 

However, the Black population in the county is shrinking. In 1990 Black residents accounted for 23% of Chatham’s population, but in 2022 they made up just 12%.

Minority-owned businesses account for 12% of Chatham’s local business scene, and in addition, those minority-owned firms only account for 4% of total sales revenues generated in the county.

Dr. Carolyn Jefferson-Jenkins, a Chatham resident, former president of the League of Women Voters and former director of the Hunt Institute at UNC-Chapel Hill, said Chatham County is a hub for economic growth, which has the chance to provide more opportunities for entrepreneurs of color. 

“Chatham County is a magnet for demographic and economic growth,” Jefferson-Jenkins said. “Opposition to further growth are barriers to entrepreneurship and small business development, especially for minority entrepreneurs.”

In 2022, Jefferson-Jenkins presented her research at WEBB Squared’s inaugural “State of Black Entrepreneurship” event. 

The average Black and Latino households in the U.S. earn about half as much as the average white household and possess only about 15% to 20% as much net wealth, according to the U.S. Federal Reserve. The gap has only increased over time as median wealth has increased exponentially for white families and stayed relatively stagnant for families of color.

Though the racial wealth gap provides a grim look at the reality for Black entrepreneurs, there is optimism for the future of minority-owned businesses. According to reporting from The Washington Post, in 2021, Black-owned businesses were started at the fastest rate in 26 years. 

The growth was largely attributed to many Black entrepreneurs across the country using federal stimulus funds to start businesses, with healthcare ranking as the top sector for those business owners. 

Jefferson-Jenkins said one of the best ways to help address these gaps is to create organizations to meet the exact needs of the marginalized, just like WEBB Squared has done. 

“These initiatives are not righting historic wrongs,” she said. “They are about choosing a more dynamic future and realizing the full potential of a massively underutilized source of talent to benefit all North Carolinians.”

WEBB Squared’s programming is intentional and leads to measurable success, Terry said. WEBB Squared focuses on social media marketing, coaching, preparing for capital acquisitions and more. They also tailor their approach to each entrepreneur to make it as useful as possible.

“Our interventions are designed to liberate consciousness and efficacy in our target populations and in the larger business stakeholder community,” Terry said. “We believe that Black and Brown entrepreneurs are the change agents that can help evolve and transform our rural economies. Our programs support translating their brilliance into profitable, sustainable business ventures.”

Terry said as Chatham County continues to grow, it becomes even more crucial to address the systemic issues Black entrepreneurs face. By doing so, she hopes WEBB Squared will help to nurture an important part of the local economy.

“As Chatham County grows and becomes more diverse with different people from ethnic and socio-economic backgrounds coming here to live, a thriving diverse business community is essential to the growth and economic well-being of our rural county,” she said. “The time is now for Chatham County to more fully embrace the ingenuity, genius and business acumen of Black entrepreneurs in tangible, public-facing ways.” ::