In the global north societies, minorities have always been at a structural disadvantage when it comes to equal pay. The capitalist superstructure has been designed in a way that elevates the white race at the peril of all other minority races and as such, other entrepreneurs suffer as there is no equal ground with which to do business.
Failures of the Civil Rights Act
When one takes the United States into focus, it becomes crystal-clear that there is still a long way to go as regards the fruition of equal pay. Many years after the promulgation of the Civil Rights Act, black workers and businessmen still find themselves at the mercy of white monopoly capital. It is as regrettable as it is tragic. It is a carefully designed system meant to exclude blacks from being economically empowered in the true sense of the term.
Jackson Gruver, a data analyst at compensation data and software firm PayScale, commented on the pay gaps using data gathered from 2017-2019 saying, “Even as black or African-American men climb the corporate ladder, they still make less than equally qualified white men. They are the only racial/ethnic group that does not achieve pay parity with white men at some level.” Other minority groups at the mercy of capital include Hispanic and Asian workers.
Although companies and other business entities may be at the forefront of preaching equal opportunities, this is not reflected in the paychecks. Income inequality as such should not be viewed as an isolated phenomenon occurring in the 21st century but one that has its roots in the free labour of the enslaved Africans back in the days of the transatlantic slave trade.
The Lilly Ledbetter Fair Pay Act
On top of the Civil Rights Act prohibiting all forms of discrimination in the US, the Lilly Ledbetter Fair Pay Act was enacted in 2009 and it “amended prior changes to several federal laws protecting the rights of workers and further clarified that all inequitable, discriminatory payments are illegal, regardless of how long ago those pay decisions or practices occurred.” But even still, these income inequalities persist unabated.
Unequal Pay and Structural Disadvantages in Business
This puts black entrepreneurs at a serious disadvantage. Because of the perennial pay inequalities, it means that black businesspeople in America will always have less capital as compared to their white counterparts in business. A perpetual occurrence of this results in one group having it better than the other, creating unending racial tensions instead of unity as one human race.
The Indispensable Need for Alternative Sources of Capital
As such, because they do not have much in terms of property and other collateral, minority business owners may find it easy to borrow from online lenders and not from traditional institutions such as banks. Alternative sources of lending such as non-profit organizations (NGOs) and online lenders have been a vital lifeline for minority business leaders. One can find out more about small business loans and grants for minorities here.
Some of the advantages of these small business loans and grants for minorities include:
- Easy application processes as it is done online.
- Less information is required.
- Funds are quickly more available
Some of the disadvantages include:
- The amount of funds may be limited
- More frequent repayments required (daily or weekly
It is right that in this age African American entrepreneurs realize how important it is to source for alternative means to finance their ventures. The credit scores and interest rates are healthier than those provided by traditional banks – banks that seek to perpetuate the status quo of further inequality.