Recent technological advances have changed the way we live. Across the world, millions of people are harnessing the power of technology to better not only their lives but those in their surrounding communities. Increased connectivity has resulted in greater access to information, and the ability of individuals and communities to use the power of technology to bring about greater economic empowerment.
In the United States, young and old alike, have embraced the power of new technologies to create new concepts and businesses with life changing implications. From social media to the sharing economy, and across all industries including finance, health, and education, individuals are innovating in previously unthinkable ways. We are in an era in which long-held business and societal norms can effectively be tested, disrupted and improved upon by anyone with a vision and ability to execute. It is a very exciting time.
Yet, despite the growing influence of the tech sector as a key driver of U.S. innovation, many Americans, particularly minorities and women remain on the outside looking in. Disappointingly, in 2015, less than five percent of the total tech workforce was African-American or Latino. While overall, minorities own 15% of small businesses in the U.S. less than 10 percent of tech pitches are presented by minority or women entrepreneurs. Of those making investment decisions, only 22 percent of senior investment professionals are minorities, with women representing just 8 percent of such professionals.
Fortunately, the lack of minority participation in the tech sector has not gone unnoticed. From Chicago based incubator Blue 1647, to NYC based Cofound Harlem, efforts are underway to train, educate, and propel a new generation of minorities and women to the forefront of the continuing tech revolution. By providing coding workshops and boot camps, professional development courses, and the ability to interact with tech leaders within and outside their communities, such programs are expanding opportunities for countless individuals. It is only a matter of time until such efforts begin to manifest themselves in the hallways of tech companies all over the country.
Beyond helping minority communities acquire the necessary skills to succeed in tech, the other side of the equation must include a proactive and concerted effort to create networks and organizations focused on financing and funding minority startups. Institutional initiatives such as Intel Capital’s $125 million Diversity Fund, focused on funding minority and other underrepresented tech entrepreneurship will not only spur greater innovation but also drive other major institutions to follow suit. On the individual level, networks of minority and angel investors focused on funding early-stage ventures led by minorities can go a long way in bridging the access to capital gap. Currently, less than one percent of Minority Business Enterprises report having received angel capital.
Undoubtedly, an increase in the number of minority students pursuing science, technology, engineering and math (STEM) will serve to increase the participation of minorities in tech. Educators and parents alike must prepare young students for a future in which technological skills will not only be desired, but a requisite; and means must be marshalled to ensure school districts serving underrepresented minorities possess the adequate resources to train students for 21st century jobs.
While the current state of minority and women participation in tech leaves much to be desired, current efforts signal positive changes. Greater minority tech participation will not only improve the socio-economic standing of individuals and communities, but will also bring about an infinite amount of bright, fresh ideas to the forefront.
Minority talent represents a largely untapped resource, one that can prove to be an effective driver of not only tech sector growth, but of positive social and community change. It is a very exciting time, indeed!
Access Your Potential is a new blog series focused on exploring the importance of developing technology skills and financial acumen in minority communities. Join the conversation by emailing PurposePlusProfit@huffingtonpost.com or by tweeting with #AccessYourPotential.