Key Takeaways
- Despite growth of Black entrepreneurship over the last decade, existing disparities between Black businesses and non-Black businesses is narrowing the pathway to greater employee and revenue growth for these firms.
- The economic consequences of the global pandemic has amplified the disparate and unequal access to financing for Black-owned businesses, causing greater rates of closure and slower recovery than White-owned businesses. In the Piedmont region of North Carolina specifically, Black-owned businesses reported cutting costs, laying off staff and their inability to seek significant capital.
- Historic examples of limited and misaligned support from major financial institutions to Black businesses should be augmented by a renewed investment in local institutions – including Black-owned banks like CDFIs who predominantly serve Black communities -with successful track records.
- Mentorship and collaboration from financial investors within the business ecosystem – a “trusted advisors” model that can work in lock step with entrepreneurs, maximizing growth at every turn – can be more beneficial than the traditional “technical assistance” model.
- To address capital and market access for Black-owned businesses, private and public dollars must pour into pre-seed and seed funds; more capital investment across a business’ life cycle is welcomed; and additional investment in African American communities is needed to acquire and control their own assets.