The Challenges Faced by Black Entrepreneurs

The Challenges Faced by Black Entrepreneurs

Lack of Resources and Funds:

As mentioned above, resources and funds are essential components that build the foundation of a successful business. Unfortunately, black entrepreneurs struggle to get their hands on the resources. According to an article published by US Chamber, financing is one of the biggest challenges faced by every entrepreneur.

Lack of Access to Networks:

Your business usually grows due to networking opportunities that help in guiding you. As for black business owners, there are limited networking opportunities due to a racial gap. Many networking groups attend to bigger businesses with money for marketing and advertising, which are stereotypically white-owned.

Problem with Scaling:

It’s more than challenging for black business owners to scale their businesses. Since there is a lack of funding and resources, it is hard for them to expand their business. In order to scale a business successfully, it’s important to deliver to all the new customers. If a company fails to hire sufficient staff or doesn’t have enough manufacturing or delivery capacity, it fails to grow.

Struggle Finding a Mentor:

Mentorship is valuable and beneficial for a business to thrive, but there are fewer opportunities for black entrepreneurs to get proper mentorship. Many black entrepreneurs don’t have access to actual mentors.

Inability to Increase Profits:

The primary goal of any start-up involves ensuring the business’s survival and increasing its profitability. However, Black entrepreneurs’ mistrust of institutions based on their experiences and history of discrimination makes them suspicious of using potential resources outside their communities. This includes a lack of informal and geographic networks to such resources, including venture-capital networks, which can isolate black entrepreneurs from prospective support sources.

The Bottom Line

There is no doubt that black entrepreneurs have been facing numerous challenges for many years. From raising funds to finding a suitable mentor, it has always been more difficult for them to initiate and run their businesses than others.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store