Written by Morgan Simon
It’s rare that people put racial justice and social capital together. So rare, that there was only one black speaker at the 1,200 strong SoCap gathering in September. So rare, that at the October Social Venture Network conference, turnout was low enough at the From Colorblindness to Racial Equity session for one participant to comment, “Perhaps we should’ve changed the name to ‘Raising Capital,’ then people would’ve come.” Yet, as a former SVN board member, and the leader of a social investor network $100 million strong, I know that people in our community care deeply about racial equity. So what gives? How is it possible, that despite our personal dedication to racial issues, we’ve managed to build a community of investors and social entrepreneurs that still reflects the power structures we’re supposedly here to challenge?
Rinku Sen, Executive Director of the Applied Research Center, provided a useful framework for considering the factors that contribute to racial inequities in our community. She talked about four levels of racism:
- Internal: the thoughts and beliefs we hold about others, right or wrong, often based on what we’ve learned as children and through society over time
- Interpersonal: the way that power relationships enable us to manifest these internal thoughts in ways that can be harmful to others
- Institutional: the policies and practices that affect people in society
- Structural: the collaboration—or collusion—of institutions that favor one group over another.
Applying this analysis to the social business community, here are some of the ways these four factors play out:
- Internal: social business leaders don’t always acknowledge their internalized beliefs about others, as they assume that racial understanding will come naturally to them given their social commitment
- Interpersonal: people of color have often noted a lack of openness from the established, white leaders of the social business and investment community—and thus do not have the opportunity to influence its growth path in a way that will best serve the communities they represent
- Institutional: choices about speakers, pricing, venue and culture make people of color feel more or less welcome at social business events
- Structural: without adequate exposure or access to resources, entrepreneurs of color and people from affected communities are not invited to be at the table of the interlocking institutions that set the overall strategies for our industry.
Rinku notes that people often assume they have to address these factors chronologically, as they are afraid to talk about race with others without first solving their “own stuff.” Her answer is that often the best way for us to address racial inequity is to put our energy into changing institutions and structures, and that in the process we’ll do the internal work we need as a community.
Given that, where do we start? In the venture capital industry, 3% of businesses funded are led by people of color, and 7% of these businesses are led by women. How do we make sure not to replicate these inequities in the context of impact investment? What can we do to make sure our events are more inclusive? How do we stay accountable to the communities we are here to serve?
For a start, I know that very few impact investors or social entrepreneurs have sat down to talk about how racial dynamics affect their work, and what they can do as a community to support racial equality. Could this be your next staff meeting? Or perhaps our next conference?
2011 Social Venture Network Fall Conference Interactive Workshop: October 28, 2011 – Moving from Colorblindness to Color-Consciousness with Saru Jayaraman, Restaurant Opportunities Center (ROC) United and Rinku Sen, Applied Research Center
Written by Morgan Simon CEO, Toniic
Photos courtesy of Nancy Jo and Nova Southeastern University (NSU)
