By Michelle Loredo
Black women are the driving force in the rise of Black-owned businesses in the United States! According to a study by Guidant Financial, 48 percent of Black entrepreneurs are women. Black women are leading by 53 percent in being small business owners compared to their women counterparts. American Express found that Black women make up 42 percent of new small businesses in the U.S.
We have put together the top three ways how Black women can achieve startup success in 2021.
Access to Capital
For any business to succeed, they need access to capital and investment opportunities to be successful. Due to the historical disenfranchisement of the Black community, they are still facing disadvantages when they apply to financial institutions. According to the Small Business Credit Survey of 2020, Black women who applied for funding opportunities were 19 percent less likely to receive the help than their white counterparts.
If you are a women entrepreneur, here a few resources that help you gain capital and financial literacy:
Strong Business Strategy
Developing a strong business strategy will help small business owners see success. In your business plan, you need to include:
Clear with Business Purpose
Create a Business Network/Social Circles
If Possible, Stay Away from Venture Specialists
Look for Local Grants
Seek Help from Local Small Business Associations
Another element you can add to the mix is to run a Minimum Viable Product strategy when you are planning on launching a product. The MVP strategy allows you to understand your customers feel about the product you are producing without creating your final product. This method can help you with investors paying attention to your product.
Community for Business Owners
Having a community to rely on is an important factor in business startup success. Having the right connection will make unknown steps clearer and make your chances of success higher.
The SBDC Network
The SBDC Network is here to help you! We have business advisors and specialist that can help you from the start of your journey to successfully operating your business. Our 14 different centers offer no-cost advising for new and already existing businesses. We also offer daily live and recorded webinars.
Here are a few examples of what our webinars have to offer:
The Art of the Ask (How to Ask for Funding)