Black entrepreneurs say they have lost a “lifeline” after Shopify abruptly cut off their access to a support program as part of the company’s dismantling of its Equitable Commerce team.
In mid-January, Shopify quietly shuttered Build Native, an Equitable Commerce support program for Indigenous entrepreneurs. The removal of the program from Shopify’s website, alongside the Empowered by Shopify and Social Impact webpages, coincided with the company departures of Build Native program lead, Kyle Brennan Shàwinipinesì, and head of Equitable Commerce, Brandon Davenport.
At the time, the status of Equitable Commerce program Build Black was unclear, with the program’s webpage—alongside the One Million Black Businesses initiative (1MBB)—still live on Shopify’s website. Shortly after the publication of BetaKit’s Build Native story, Shopify’s 1MBB page was removed, with additional Equitable Commerce leads publicly posting about their departure from the company. On Feb. 1, at the start of Black History Month, Shopify locked the official Build Black Slack channel for participating merchants.
These changes coincide with broad layoffs across Shopify’s Equitable Commerce team, which was responsible for the company’s social impact initiatives, including research and support programs. Multiple sources told BetaKit that the employees responsible for Shopify’s Build Black, Build Native, and other social impact programs were all laid off. The Logic reported that roughly 12 people were let go.
End of lifeline
For Black entrepreneurs who were part of the Build Black program, the Slack channel shutdown removed the main conduit for access to resources and opportunities, three participants told BetaKit.
One Black entrepreneur BetaKit spoke with said that diversity, equity, and inclusion (DEI) initiatives like the Build Black program can act as “lifelines.” The entrepreneur noted that a grant provided through a Shopify Build Black partnership with Pinterest helped them fund their business through a challenging stretch.
For participating Build Black merchants, the Slack channel was a source of communication and community. Through it, Shopify employees provided information about events and resources for Black founders. Entrepreneurs were connected with financing opportunities, online skills courses, and mentorship sessions.
“I have been a strong advocate for Shopify, encouraging other entrepreneurs to use the platform, but the lack of transparency in dissolving this program is disheartening.”
At the end of January, some Shopify employees indicated on the channel that they were leaving their roles but did not explain why. After more goodbyes trickled in, “everyone had a sense that…this program was about to get eliminated,” Jamie Batiste, a jewellery brand founder and program participant, told BetaKit.
On Feb. 1, the Slack channel was abruptly locked, leaving members unable to access old messages. Shopify did not send any official notice that access to the program would be removed, according to participants.
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“I have been a strong advocate for Shopify, encouraging other entrepreneurs to use the platform, but the lack of transparency in dissolving this program is disheartening,” another founder said. “It speaks volumes about their positioning toward Black merchants.”
The timing of the abrupt closure had not gone unnoticed among the Black entrepreneurs BetaKit spoke with. BetaKit obtained a screenshot from a Build Black newsletter email sent on Jan. 23, soliciting applications to be featured on Shopify’s Instagram for Black History Month.
The email was sent to Build Black participants, saying that four businesses would be selected and featured on the Instagram account. As of Feb. 23, none of Shopify’s permanent Instagram posts in February mention Black History Month or feature Black-led businesses.
Shopify has also disabled a Shop app feature allowing users to search for Black-owned businesses, despite recently adding a similar ‘buy local’ filter for Canadian and US businesses.
Two of the Black entrepreneurs BetaKit spoke with asked not to be named for this story. One said they feared being identified might “jeopardize their business.”
HOPE and disappointment
Like Build Native, Build Black was announced in 2020, joining a litany of corporate DEI initiatives following the police murder of George Floyd and the resurgence of the Black Lives Matter movement in the US.
Build Black launched alongside the One Million Black Businesses (1MBB) initiative, a partnership with US non-profit Operation HOPE that pledged to create one million new Black businesses in the US and Canada by 2030. Shopify announced the partnership alongside a $130-million commitment to the initiative, which offers access to workshops, mentorship, capital, and partnerships.
“At Shopify, we believe more independent voices make commerce better for everyone. That’s why we work to break down the barriers to entrepreneurship every day,” Shopify president Harley Finkelstein said at the time. “By collaborating with Operation HOPE and working together on our shared passion for helping underserved communities succeed, we believe we can help unlock even more economic opportunities for Black business owners across the country, leading to greater choices for shoppers everywhere.”
As of Feb. 20, Shopify has updated its website footer to direct the “Build Black” link to the Operation HOPE 1MBB webpage. The link briefly redirected to Shopify’s homepage after the company removed its own 1MBB webpage in late January.
However, Shopify’s commitment to 1MBB remains intact according to the initiative’s co-organizer. Lance Triggs, the chairperson of the 1MBB initiative at Operation HOPE, said that Shopify is still 1MBB’s largest partner and recently increased both its in-kind and financial support.
Fewer than one percent of venture dollars have gone to Black-led companies in Canada since 2020.
“They are very much committed to support 1MBB through the year 2030,” Triggs said over email.
Triggs also noted a recent Shopify offer for 1MBB entrepreneurs that provides six months of access to run an e-commerce store on the company’s platform for $1 per month. That offer is still live on a separate Build Black webpage on Shopify’s website.
Kevin Boucher, Operation HOPE’s chief strategy and communications officer, declined to comment further and directed BetaKit to Shopify for further inquiries.
Despite the promotional offer, the dismantling of Shopify’s Equitable Commerce team alongside the community support and visibility it provided, comes as Black entrepreneurs continue to face barriers to funding opportunities in Canada. Fewer than one percent of venture dollars have gone to Black-led companies in Canada since 2020, according to a joint RepMatters and BKR Capital report.
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The report estimates that $312 million in additional funding was needed in 2024 to match Black founders’ proportional representation of the Canadian population. A separate report from the Business Development Bank of Canada notes that 1.3 percent of Black Canadian adults are entrepreneurs, compared to 2.3 percent of the general population. That percentage drops to 0.7 percent among Black women.
In a recent LinkedIn post, businesswoman and investor Arlene Dickinson denounced Shopify’s rollback of DEI initiatives, calling it a “huge step backwards.”
“Shopify has always stood for entrepreneurs,” Dickinson wrote. “It built its company in Canada on the idea that anyone, anywhere, could start and grow a business. That’s why its sudden shift is so very disappointing.”
Batiste told BetaKit that she hopes Shopify decides to bring the program back. “It motivates individuals who are running and growing a business and trying to scale with Shopify, which in turn impacts the world and helps everyone out,” she said.
Batiste noted that she applied for a retail partnership with Build Black shortly before the channel closed. Now, she’s been left in the dark as to whether that partnership will materialize.
Shopify did not respond to requests for comment from BetaKit regarding the status of its Equitable Commerce team, 1MBB partnership, and Build Native and Build Black programs.
Disclosure: BetaKit majority owner Good Future is the family office of two former Shopify leaders, Arati Sharma and Satish Kanwar.
With files from Douglas Soltys. Feature image courtesy Shopify.