The Surge and Decline of Support for Black-Led Organizations: A Post-Pandemic Reality Check

The landscape of support for Black-led organizations and businesses has undergone a tumultuous journey over the past few years. The heightened awareness and surge of support during 2020 and 2021, triggered by the racial justice movements, have now given way to a stark decline. This shift has left many longstanding organizations grappling with significant challenges. As we reflect on this roller-coaster ride, it’s crucial to unpack the dynamics that have shaped this current reality. It’s crucial to understand how an ecosystem of already struggling black led organizations are wounded by the half-hearted attempts at supporting equity work.

Pre-Pandemic: A Desert of Support

Before the pandemic, the equity gap for Black entrepreneurs was glaring, yet support programs specifically tailored for Black organizations were few and far between. The lack of dedicated resources and attention meant that Black-led businesses and organizations often had to navigate their growth and sustainability with minimal external support. The systemic inequities were evident, but the response from the broader funding ecosystem was largely apathetic. I personally remember being laughed out of many offices and constantly asked: “help us understand: why would you design a program for Black women entrepreneurs”?

2020-2021: A Flood of Interest and Support

The murder of George Floyd in 2020 acted as a catalyst, bringing unprecedented attention to racial injustices and the inequities faced by Black communities. This period saw a surge in interest and funding from both government and philanthropic sources aimed at supporting Black and BIPOC entrepreneurs. The influx of resources led to the establishment of numerous new entrepreneurial programs designed to serve Black and BIPOC communities. According to a report by Candid and the Center for Disaster Philanthropy, funding for racial equity reached $12.6 billion in 2020 alone.

This overwhelming support, while beneficial, also brought about an unintended consequence: it grew the presence of Black-led business-serving organizations and increased competition for funding. Even worse, many white-led and mainstream institutions launched their own programs targeting Black entrepreneurs. While these initiatives have expanded the pool of available resources, many lack cultural responsiveness and community-led approaches, and diverted crucial funding away from Black-led organizations that had been doing the work long before it became a trend. Millions in government and philanthropic funding begin to get funneled to large, mainstream institutions that, in many cases, failed to partner with and funnel support to pre-existing Black-led BSO’s. This might not be as devastating if the funding trends and commitment were going to continue to fuel the work, but the opposite has happened.?

2022 and Beyond: Waning Support and a Challenged Landscape

As the immediate fervor of 2020-2021 waned, so did the funding. The once-flush resources dwindled, leaving many Black-led organizations in a precarious position. The equity gap, which briefly narrowed during the surge of support, began to widen again. Many of the new programs launched by non-Black-led institutions continue to operate, sometimes with reduced effectiveness due to lack of cultural grounding. Meanwhile, organizations that were genuinely committed to long-term support for Black entrepreneurs found themselves struggling to sustain their operations in a significantly changed and increasingly competitive landscape.

The Anti-DEI Backlash

Compounding these challenges are the recent legal attacks and budget cuts targeting diversity, equity, and inclusion (DEI) initiatives nationwide. Notable cases, such as those involving the Fearless Fund and Hello Alice have highlighted a growing anti-DEI sentiment. Over the past year, many organizations have faced significant cuts to their DEI budgets, further undermining efforts to support Black entrepreneurs and communities. This backlash not only threatens the progress made in recent years but also underscores the persistent resistance to equity and inclusion initiatives.?

The Pathetic Reality

It’s disheartening to witness how quickly the momentum for racial equity dissipated. The initial wave of support seemed to signal a long-term commitment to addressing systemic inequities. However, the rapid withdrawal of interest and funding reveals a more cynical reality: many leaders and institutions appeared to care deeply about racial equity for a brief period, only to move on once the spotlight dimmed. If you’re following this work, this is likely not a revelation, but I want to emphasize how the short-lived enthusiasm has disrupted the ecosystem that existed to support Black entrepreneurs and created an imbalance that impacts the group of organizations that strive to do this work for the long haul. We recognize that you can’t undo 400 years of injustice in 2 years. We’re committed - and yet investments in our sustainability are not prioritized.

Moving Forward: A Call to Action

For those of us who remain steadfast in our commitment to supporting Black entrepreneurs, the current landscape is undoubtedly challenging. Yet, it’s essential to continue advocating for sustained and meaningful support. Organizations like Black Innovation Alliance led by Kelly Burton, PhD are urging philanthropic organizations and policymakers to recognize the long-term nature of this work and invest accordingly in Black-led providers. Only through consistent and culturally responsive support can we hope to address the deep-seated inequities that continue to plague Black entrepreneurs and communities.

The bottom line is that the surge and subsequent decline of support for Black-led organizations serve as a stark reminder of the fickle nature of trend-driven philanthropy and efforts that fail to consider sustainability and ecosystem impact. The path forward requires a recommitment to putting your dollars behind genuine, long-term support that transcends moments of heightened awareness and addresses the systemic barriers that have long hindered Black entrepreneurs.