Unique Business Challenges Black Owners Face
Between February and April of 2020, the total number of Black-owned businesses dropped by more than 40%.
Between February and April of 2020, the total number of Black-owned businesses dropped by more than 40%.
Between February and April of 2020, the total number of Black-owned businesses dropped by more than 40%. This was the largest drop in any ethnic group. That tells us Black owners are facing unique business challenges. And the only way to combat these challenges is by recognizing where they exist and then dismantling them. Here are some of the biggest business challenges Black owners are facing.
Systemic and Institutional Barriers
During the early days of the pandemic, businesses applying for federal relief programs were struggling to navigate the complicated system. And if that’s not difficult enough, Black owners were noticing that they weren’t receiving the kind of institutional support that their non-POC competitors were.
Historically, Black people have the hardest time getting approved for business loans and other crucial financial packages. The largest roadblock for all entrepreneurs is finding or raising the capital to cover startup costs.
Racial wealth gaps and implicit bias created limited avenues for Black startups to get the resources they need. According to an article from McKinsey, Black-owned businesses are still 20% less likely than white-owned businesses to obtain a loan from a large bank.
Lack of Representation and Support
Part of that comes from a lack of representation. In this article, a Black woman who owns her own candle-making business recounts how difficult it is to make connections in her local industry. Every other candle business is owned by a white woman. And because Black owners face other unique and systemic business challenges, finding a black-owned business networking community is difficult because the representation isn’t there.
Networking is becoming more and more important, no matter what industry you’re in. And there are a handful of corporations hoarding huge amounts of market shares, which means finding a community of BIPOC entrepreneurs and professionals is very difficult.
As more Black entrepreneurs hustle to stake their claim in an often-saturated market, the need for mentors, peers, and community-building increases.
The mentor-mentee relationship is one that can truly transform your business from a fledgling idea to a full-blown, sustainable business model.
Lack of Educational Opportunities
When it comes to dismantling systemic issues that bar Black entrepreneurs from becoming successful, access to helpful and educational resources is also a factor. Black entrepreneurs will need to focus on supporting fellow BIPOC-owned businesses. The insights gleaned from years and years of hustling can be passed to other professionals who are looking for better ways to reach their goals.
HarlemAmerica Wants to Support All Black Business Owners
Black entrepreneurs need a place to find and amplify their professional voice. And that’s what the HarlemAmerica Digital Network does. We want to help give you the tools to start a successful podcast or online TV show. Boost your brand with top-notch content and use that content to advertise your products and services in a comprehensive and meaningful way.
Let HarlemAmerica help you find your audience. Check out our website to learn more about our small business membership packages.