Charisse Says

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Black Females Rock, Women's Equality Day, ESOPs

As I mentioned last week, it’s National Black Business month. If you missed my summary of how many Black businesses there are in the U.S. and the case for wealth creation, check out my post from last week

There is a particular segment of Black businesses that has been a standout performer over the last decade - Black female owners. Prior to COVID-19 in 2020, the number of firms owned by women of color grew 43% from 2014 to 2019, according to American Express.

Black-women-owned businesses grew the fastest at 50%, followed by Native Hawaiian/Pacific Islander (41%), Latina/Hispanic (40%), Asian American (37%) and Native American/Alaska Native (26%). As of 2019, women of color employ 2.4 million people and generate $422.5 billion in revenue (23% of total women-owned businesses’ revenue of $1.4 trillion). While COVID-19 surely has caused all Black owned businesses to close at the higher rates relative to their white counterparts, I suspect that Black female owners will be leading the recovery efforts and trying to gain wealth in the process. 

You may be saying - Charisse, owning a business just isn’t for me. Well, here’s what I say...

Even if you do not own a majority position in a private business, I want to encourage you to investigate your company’s public stock programs, especially if you are a person of color. In a recent article by the Wall Street Journal, “young employees of color who participate in employee stock-ownership plans (ESOPs)—a federally regulated mechanism for giving employees company stock—have 30% higher wage income than employees of color who don’t participate in such plans.” And, “workers who participate in stock-ownership plans have greater access to retirement benefits, greater net household wealth and more job stability, the report says.”

Source: Eqvista

Furthermore, according to the Aspen Institute report, ESOPs also help employees escape or avoid debt by borrowing against accounts and providing no-interest loans to help with economic challenges and life investments, such as education or homeownership. More and more data is surfacing on the wealth creation effects of borrowing against investment accounts. I’m telling you - it’s a big opportunity to access capital at very low interest rates. 

So, whether you’re thinking about starting your own business or joining someone else’s (private or public), make sure you understand the stock ownership options you have available to you and go get that wealth! 


A Wealthy Girl Corner

Part of having a wealthy girl mindset also involves harnessing your intangible assets. One of those most precious intangible assets is your health, and I would argue ‘good health’ as defined by you and perhaps your doctor. In the spring, I shared with you that I started a garden in my backyard. Three months later, I am enjoying fresh cucumbers, arugula, basil, and tomatoes. While I anticipated these vegetables tasting yummy, I did not anticipate how much more I would crave fresh, healthy foods overall. I surely feel healthier. I hope you will continue to invest in your health as it’s one of those intangible assets you need to do ANYTHING! Leave a comment on my blog to let others know what you are doing to invest in your health, which leads to a wealthy life.  

Finally, in honor of Women's Equality Day, I salute all my fellow wealthy girls as we honor the 19th amendment to the Constitution, which gave us the right to vote.