Bipoc Economic Success Trust

Background Statement

The BIPOC community, especially the Black community, has struggled with systemic racism and economic injustices for centuries, and its effects have been amplified by the COVID-19 pandemic, the rise in inflation, and pervasive racial disparities.

Youth: The financial literacy gap begins early in life. White and Asian 15-year-olds, on average, have substantially higher financial literacy scores, while Hispanic and Black students have substantially lower scores when compared to their general population peers, as reported in the 2020 U.S. National Strategy for Financial Literacy.

Financial literacy is key to helping young people manage money effectively so that they can become financially stable, build assets and achieve their personal goals.

Decisions made in early adulthood can have lasting financial consequences. For instance, today’s youth can amass debt quickly, often in the form of school loans or credit card debt. According to a report by the National Endowment for Financial Education, Generation X youth reported an average debt of about $60,000 by their late 20s, and their successors — Millennials — had already reached this point in their mid-20s. Source: Annie Casey Foundation, Financial Literacy for Youth December 9, 2021)

Small Business: There are 30.2 million small businesses in the U.S., but only a fraction of them survives. Twenty percent of small businesses fail by the first year, 30% by the second, 50% by the fifth, and by the 10th year, a staggering 70% of businesses have closed. Eight out of 10 Black-owned businesses fail within the first 18 months.

There is quantitative and qualitative information suggesting that there is not a level playing field for minority and women-owned businesses in Colorado. Minority and women-owned businesses received about 8% of State contract dollars, well below the 28% expected from the availability analysis. (Source: 2020 STATE OF COLORADO DISPARITY STUDY Final Report)

Workforce Development: With Black workers concentrated in low-wage frontline jobs that could not be done remotely, exposure to the COVID-19 virus and inadequate access to healthcare cost Black lives disproportionately, widening an already wide racial gap in life expectancy.

Though the unemployment rate in Colorado is relatively low, many low-income families are stuck in low-paying jobs and are unable to overcome the “cliff effect” – earning just enough to stop receiving government benefits.

Leadership Development: The Denver Business Journal reported that 96% of Colorado firms have trouble finding skilled construction workers. In 2013, Forbes reported that the skills gap will worsen as nearly one-third of all tradesmen are 55 and over and will retire without nearly enough young craftsmen to take their places.

Many Black professionals have experienced racial prejudice in the workplace. Unsurprisingly, this cohort is nearly four times as likely to encounter prejudice as White professionals are (58% vs. 15%)—but studies also found a marked difference when comparing Black to Latinx (41%) and Asian (38%) professionals. In one sample, Black professionals in the West and Midwest are even more likely, which could be due to lower Black population levels in those regions, Colorado included.

In the past, local groups and governing bodies have attempted to address these issues in silos, but we believe that a more coordinated collaborative effort with greater support will help solve the issue.

With "The 2028 Project," BEST will collaborate with governmental entities, community stakeholders, and resource providers to develop a strategic plan that aligns priorities and enables accountability around Black Economic Empowerment. The 2028 Project's strategic plan is centered around three (3) pillars of economic development: Small Business Development, Workforce Development, and Leadership Development. Our objective is to work with stakeholders to make significant strides in economic advancement for people of color starting with Colorado’s Black Community. This plan will guide BEST’s work over the next five (5) years.

The annual Success Summit provides the venue to bring stakeholders together to report on the progress of the 2028 Project and share ideas, best practices, and lessons learned that foster economic growth within the community at large.

In the past, local groups and governing bodies have addressed these issues in silos. We believe a more coordinated collaborative effort with greater support will have a more significant impact.