As we continue to assess the potential recovery from this global pandemic, we’re also in the midst of beginning to address the systemic racism that plagues institutions, processes, and ecosystems in the startup world. To that end, Dell Gines, Senior Community Development Advisor for the Federal Reserve Bank of Kansas City, and Rodney Sampson, Chairman and Chief Executive Officer for The Opportunity Hub, have recently published a framework that combines those two efforts entitled “Building racial equity in tech ecosystems to spur local recovery.”
One high-priority recommendation in solving the country’s racial wealth equity problem is developing inclusive local tech ecosystems, which can drive Black tech entrepreneurship and increase the Black tech workforce. By prioritizing inclusive tech ecosystems, Black households will be able to leverage the power of innovation and the increased global reliance on technology to create wealth and contribute to enhanced productivity and quality of life in the nation’s local economies.
The piece outlines a number of potential options for improving upon the current state of the racial wealth equity issue, with this specific observation on tech entrepreneurship:
We estimate the unit economics of exposing up to 1,000 people a year to the tech startup ecosystem are $1 million per year per city, and the unit economics of accelerating a product-ready startup are $50,000.
For more, read “Building racial equity in tech ecosystems to spur local recovery.”