Black-owned businesses are experiencing significant growth, with entrepreneurs making strides across various sectors, including retail, beauty, food and more. However, despite this progress, many Black entrepreneurs face challenges accessing essential funding and resources.
The funding gap for Black entrepreneurs
According to recent reports, nearly half of Black business owners encounter difficulties securing capital. Key statistics reveal that:
46% struggle to access funding.
39% feel uninformed about the application process.
38% lack relationships with lenders.
21% are unsure where to apply for capital.
In light of these challenges, various organizations are stepping up to provide financial resources and support for Black entrepreneurs.
Loans and grants
Founders First CDC
Founders First CDC is a leading nonprofit organization dedicated to supporting diverse entrepreneurs. Since its inception, it has provided funding, mentorship and training opportunities for businesses led by women, people of color and other underrepresented groups. In 2023, they awarded $25,000 to women-run businesses and committed $300,000 to support entrepreneurs in various states through their Job Creators Quest Grant program.
Lendistry
Lendistry, a minority-led Community Development Financial Institution, has provided over $9 billion in economic opportunities to small businesses. They offer various loans and grants, particularly for entrepreneurs in California, Colorado and New York, and have played a crucial role in pandemic recovery efforts.
Business accelerator programs
For entrepreneurs looking to elevate their businesses, several accelerator programs are available:
Amazon Black Business Accelerator
This program focuses on building sustainable growth for Black-owned businesses by providing financial assistance, education and marketing support.
Goldman Sachs Programs
Goldman Sachs offers the 10,000 Small Businesses program, which provides business education and networking opportunities, and the One Million Black Women initiative, aimed at empowering Black female entrepreneurs.
Google for Startups Black Founders Accelerator
This 10-week program supports Black-owned tech startups with mentoring, training, and access to Google tools.
Venture capital support
Several venture capital firms are dedicated to funding Black entrepreneurs:
Black Angel Tech Fund
This fund focuses on seed funding for early-stage technology companies founded by Black entrepreneurs.
Harlem Capital Partners
Based in New York, Harlem Capital invests in early-stage minority startups, aiming to create generational wealth for women and people of color.
Serena Ventures
Founded by tennis legend Serena Williams, this venture capital firm invests in innovative entrepreneurs solving everyday problems.
As Black-owned businesses thrive, access to funding and support remains crucial. By leveraging available resources, Black entrepreneurs can overcome barriers and achieve their business goals.
