Goldman Sachs is investing nearly $3 billion to expand the Black business community through its One Million Black Women initiative, which aims to drive economic opportunities for one million individuals by 2030. The investment bank recently celebrated the graduation of its fifth class of Black in Business, a program designed to help sole proprietors scale into employers. The program has already credentialed 750 Black women and has generated $22.4 million in revenue for participating businesses. Goldman Sachs CEO David Solomon highlighted the success of the program, with 65% of graduates reporting an increase in revenue after six months and 50% adding employees.
Participants like Hyacinth Tucker, founder of The Laundry Basket, and Sandra Jean, CEO of Jean Consulting Group, have found the program to be challenging but impactful. Tucker credits the program for helping her scale her laundry service business in Maryland, while Jean saw her revenue increase nearly 500% after completing the course. The success of these entrepreneurs highlights the potential impact of programs like Black in Business in closing the wealth gap for Black women. Goldman Sachs estimates that closing the earnings gap for Black women could add 1.7 million U.S. jobs and $450 billion to the national economy.
Goldman Sachs created One Million Black Women in response to its 2021 report, Black Womenomics, which found significant wealth disparities between Black women and White men. The program is modeled after the investment bank’s successful 10,000 Small Businesses program, which has impacted over 14,000 businesses in urban and rural communities. As part of its initiative, Goldman Sachs is directing funds to venture firms and public-private partnerships that support Black-owned businesses and economic advancement for Black women.
In addition to financial investments, Goldman Sachs is also deploying grants to institutions focusing on maternal healthcare and mentoring programs for girls interested in economic advancement. The investment bank plans to spend $100 million in philanthropic funds to support these initiatives. As the program grows, Goldman Sachs aims to increase the graduating class size and track the progress of all businesses until 2030. By providing ongoing support and resources, the program hopes to break the trend of 90% of Black businesses failing after three years and empower more Black entrepreneurs to achieve long-term success.
Participants like Tucker and Jean are already looking ahead to the future, with plans to expand their businesses and leave a legacy for future generations. The success stories from Black in Business serve as a testament to the impact of investment and support in the Black business community. As the program continues to grow and evolve, it will be interesting to see how many more Black entrepreneurs can benefit from the resources and opportunities provided by Goldman Sachs and other organizations working to drive economic empowerment for Black women.
