Starting a business is not an easy feat to accomplish. Several people have to put a major portion of their life on the backseat to get started with an idea they feel confident about. Throughout their journey, they even take the help of investors and programs to gain an understanding of their field and to help propel their business further. However, is the playing field even for all?
Research suggests that minority-owned businesses are more likely to be rejected from obtaining loans at three times the rate than non-minority businesses. Such a statistic seems so unrealistic in a progressive world like ours. Although complete equality will take quite some time, the scenario has been changing of late. A good portion of businesses across the U.S. and the U.K. are now owned by minorities, indicating a wave of change.
Here is a list of the best business resources for black business owners.
Funding
Financing is certainly one of the biggest roadblocks for aspiring black entrepreneurs. Here are some organizations that can help –
1. National Association for the Self-Employed (NASE)
NASE currently provides opportunities through its growth grants program that allows entrepreneurs to apply for grants up to $4,000. The funding received through NASE has helped several businesses gather funds for their technology, hiring, and marketing efforts. Applications are open to all small business owners who have a NASE membership without any outstanding dues.
2. Millennial Entrepreneurs Redefined
This program is funded by the U.S. Black Chambers Community Economic Development Corporation and essentially seeks to provide a ‘compete and win’ opportunity to millennials. Applications are open for individuals between 18-35 years of age, who have an innovative business idea, but with less than $10,000 in capital. The winners selected through this program are given ongoing support, mentorship, and consultation to begin their business. The program also hosts a plan and pitch competition where selected individuals can win awards up to $5,000.
3. Operation Hope Small-Business Empowerment Program
The Operation Hope Program was created for helping aspiring entrepreneurs who come from low-wealth neighborhoods, which often hosts several minority communities. Participants can avail of small financing options, along with business training and financial counseling. The training program lasts 12 weeks, and participants are even made aware of credit and money management.
Accion has been around since the 1960s and is committed in its approach to providing financing for minorities. The international non-profit micro-lender also provides minority business owners with advisory, investing, and partnership services, which will enable them to get their business moving forward.
5. British Business Bank’s Start Up Loans Programme (UK)
The British Business Bank has a loan program that provides a funding boost to London-based entrepreneurs. New figures have revealed that this program has funded a total of £50 million towards UK entrepreneurs from Black, Asian, and Minority Ethnic (BAME) backgrounds. These figures represent almost half of all Start Up Loans offered by the British Business Bank in London.
Business Development Programs
Aside from funding opportunities, several organizations also provide black business owners with business development programs that can help entrepreneurs build their business once they’ve started.
6. National Black MBA Association
The NBMBAA is a non-profit whose goals are centered around offering educational and economic growth opportunities to black entrepreneurs. The year-round programs and events offered to members include training and exposure to new ideas. The network currently has 39 local Chapters, 14,000 members, and 280 partners, making it one of the more easily-accessible programs.
This is a workshop conducted by the Minority Business Development Agency (MBDA) all across the U.S. In the program, minority business owners are educated with credit counseling, entrepreneurship education, and training from several local investors and contractors. The connections and networking opportunities offered by the program help entrepreneurs grow their business and secure the required capital.
8. 8(a) Business Development Program
The 8(a) is one of the more well-known resources available for aspiring minority entrepreneurs. The program offers plenty of resources like access to capital, in addition to monetary assistance. There are quite a few eligibility requirements for business owners to enter the program, which helps to ensure that help goes to heavily disadvantaged people first. One of the primary requirements of the program is that the business should be 51% owned and controlled by a U.S. citizen who has experienced cultural and economic bias based on their race or ethnicity.
Black women are undoubtedly the most marginalized community in all of the United States. Community programs for black women, in particular, are required to help them gain access to more opportunities. Black Women Connect is one such online community that helps African American women grow their business. The community welcomes business-savvy and career-driven black women to come forward and network with several other like-minded women entrepreneurs. Such a community effort helps these women find jobs, build their business, gain access to funding, and learn more about the business world.
10. National Black Women’s Network (UK)
The National Black Women’s Network focuses on the advancement of women of color in their professional pursuits. The organization hosts several meetings, workshops, and seminars, all of which are focused on helping women learn new skill sets and achieve new goals. The networking events help women meet ideal contacts for their business and build their business in a much better way.
