Startups owned by members of marginalized communities such as people of color and women, remain in need of capital and equitable help from government, according to a panel of mayors speaking at an MIT Sloan School of Management this week.
The panel of Black mayors included Acting Boston Mayor Kim Janey in a conversation on how leaders are creating inclusive innovation economies.
“One of the biggest challenges that women and minority owned businesses face is access to capital, still in 2021,” Chicago Mayor Lori Lightfoot said.
A recent MassINC report noted that “white workers are more than twice as likely to own a business incorporated in Massachusetts.”
Speaking alongside Janey and Lightfoot were San Francisco Mayor London Breed. The three mayors were brought together to discuss their expertise on leading equitable economies because “all of their cities are known as innovation hubs,” moderator and MIT lecturer Malia Lazu said.
Janey said Boston does “lead in healthcare and having the best universities as the birthplace of public education, (but) Boston has not worked for everyone.”
She cited Boston's racial wealth gap disparity, where the households for Black families and the households for white families see an almost quarter-million-dollar gap. “White households hold an average net worth of $247,500, where the net worth of Black households is $8,” Janey said, citing a well-known Boston Federal Reserve study.
She also cited the city's poor supplier-diversity performance, in which the city spends $2.1 billion to do business, but less than 1% of that spending has gone to Black or Latinx businesses.
“Discriminatory laws have gotten us here with this wealth gap, and we need policy to help get us out,” Janey said
Janey went on to say that Boston needs its business leaders and business community to do their part and make sure they have more inclusive practices.
Her mayoral colleagues echoed her call to action.
“Being equitable is about real change and real solutions,” said San Francisco's Breed.
They also said they wanted to be sure to work together and to support Janey, Boston’s first woman and first Black mayor.
“Boston is so important to our nation, and we want to do anything we can to help [Janey] be successful,” Lightfoot said
Janey has long advocated more inclusion and equity in how the city itself has done business long before becoming mayor. As she continues her term she noted it is of her utmost priority to aid Boston businesses in becoming more equitable.
The virtual conversation took place via Zoom and was a continuation of series focuses on accelerating inclusion in the innovation economy.
