Starting and growing a business, especially during COVID-19, is already incredibly difficult. However, in addition to the common struggles one must go through at the start of any business, Black small business owners and entrepreneurs face unique obstacles and challenges to achieve success and sustainability.
This was made even more notable in 2020, as Black communities were disproportionately affected by the pandemic and Black businesses faced economic hardship at much higher rates. In fact, a Federal Reserve analysis reported that only 20% of PPP loans went to areas with a high concentration of Black-owned business. According to the analysis, this lack of funding was in part due to the fact that many Black business owners did not have a prior relationship with a bank—putting them in a weaker economic standpoint.
In addition to this, three times as many Black-owned businesses didn’t apply for funding because they feared being turned down by banks, compared to white business owners. And this isn’t a new fear for Black business owners and entrepreneurs—raising capital has been significantly harder historically for minority-owned businesses.
According to the Federal Reserve, only 66% of BIPOC business owners received at least a percentage of the loans they requested from a bank compared to 80% of white business owners. On average, these loans also come with a 1.4% higher interest rate.
So whether it’s raising capital in a pandemic, navigating inequality, closing the wealth gap, building a network, or dealing with daily microaggressions, the path to success can be tough. With that in mind, supporting Black business ownership is critical.
To help motivate your business goals, we’ve compiled a few insightful tips for aspiring and current Black business owners from other successful Black business owners and entrepreneurs. Advice from those who have walked the path and learned the ins and outs of achieving your goals in a difficult economic and racial climate is a great resource to tap into.
Check out the infographic below for inspiring historical figures, noteworthy statistics, and advice on building a foundation for long-term professional and personal growth. With these tips and our guide on how to transform your digital storefront in this pandemic, you’ll be ready to work towards your goals and start building the business you’ve envisioned.
Contributors:
Kirsha Campbell | Dr. Deana Stevenson | Isaac Addae | Chynna Morgan | Simone McDowell | Leticia DeSuze | Karen Donaldson | Nerissa Zhang | Ray McKenzie | Trudi Lebron
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