According to an analysis from Morgan Stanley , because only less than 1% of all VC dollars go into women, black and brown startups, investors miss out on more than $4 trillion in potential returns due to conscious and unconscious systemic biases, leading them to overlook promising businesses and founders who come from underrepresented communities.
Despite this massive opportunity, efforts to increase entrepreneurship in underrepresented communities have largely focused on one-off programs, particularly programs that teach entrepreneurship through classroom-style engagement or accelerators.
Despite good intentions, these programs often have negligible impact – both because the number of people they can serve is constrained by their funding model and because a limited range of services means that participants can “age out” of the available options to scale, leading many to stagnate or fail short of realizing the personal and communal wealth creation potential.
Unlocking dormant of underrepresented creators requires a self-reinforcing, self-supporting system that increases underrepresented creators’ success at all levels. Such a system has not been developed, despite the fact that all of the requisite components are already in place within the international startup and small business support ecosystem.
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