An important part of the American promise is entrepreneurship being available to anyone. However, the playing field comes with many challenges for business owners of color. You may be more likely to receive a higher interest rate for a loan or be denied a loan altogether. There are many biases to tackle in the business world, but the challenges can be overcome.
Entrepreneurship is like creating art. There are many elements used to create your vision, just like there are many elements to ensuring a new start up business begins on a positive note. You need a business plan and capital just to create your business. You will also need support when it comes to launching your new business.
Other elements that you will need to learn about and obtain may include engineering and product development, ensuring your business remains within state regulations, and understanding elements of business litigation law. Of course, all of this is based on the type of business you would like to start. The elements you use will have a direct impact on your new start up business.
The business world is not ideal for minorities. Access to certain resources isn’t equal either. As a new black business owner, it helps to understand that certain aspects carry more weight than others when making business decisions. Those aspects are being addressed by organizations such as Venture Noire that are otherwise venture catalysts. There is hope for the future of your new start up business as a person of color.
This All Seems So Overwhelming
A new start up business comes with challenges. However, those challenges aren’t insurmountable. Not when you can get positive exposure to other entrepreneurs. Starting a new start up business entails many elements and it can be confusing and end up forcing some to quit. You will need advice concerning budgeting, speaking with a licensed insurance agent, and using marketing consultants.
You need to be able to position yourself in a manner that makes your new start up business successful. Venture Noire can assist you in preparing for challenges that may have no idea are in your future. You will get access to successful entrepreneurs and mentors that give you the ability to learn more about becoming an entrepreneur of color.
Start Your Business Off Right with a Mentor
Today information is literally at your fingertips. You can find out almost anything you want by looking it up on Google. Just keep in mind, Google isn’t a mentor. Searches aren’t always credible, especially if you have no idea about the background of the site in which you’ve just landed. The value of a true mentor is vital.
Research shows that mentoring itself, has a very significant impact on how well a new start up business will succeed. What exactly will a mentor do for you? They help expand your network and reach certain markets that would otherwise be impossible or difficult to access. Plus, no one shares lessons based on experience better than mentors. Experience is the one commodity that is the hardest to come by even from top business books.
Have You Already Hit That Brick Wall Called Funding?
Lack of resources and funding is a real problem for entrepreneurs of color. You need both funding and critical resources to build a successful new start up business. Funding itself is difficult for new entrepreneurs no matter their race. Not many business owners started off with the full amount of money they needed to get their business off of the ground.
Many times new entrepreneurs of color turn to friends and family to fund their investments. Even though the black middle class is growing per the U.S. Census Bureau, the lowest household income is African-American. What does this mean for your business? You will more than likely end up starting with lower capital. This is just another hurdle when it comes to the racial wealth gap that further creates challenges for minorities.
Without good financing, you could have difficulties when it comes to using resources such as marketing consultants, web design agencies, forming an LLC, or using payroll services. The bottom line is socioeconomic barriers can have an adverse effect on how well you are able to grow a new start up business. Venture Noire can help combat those challenges.
Increasing Funds Does Not Entirely Solve the Problem
Yes, finances do play a significant role in how a business succeeds. Just allocating funds for entrepreneurs of color does not solve the entire problem. It takes a holistic approach with a special focus on the factors required for a new start up business.
The Congressional Black Caucus Foundation released a study that viewed the state of entrepreneurship in America for people of color. Three factors were highlighted that are of significant impact in consideration of business success – social, human, and financial capital.
Social capital is in reference to the networks and relationships that all play an important role in the growth of a business. Human capital is in reference to people-associated characteristics that help to scale businesses, such as experience and education. Finally, financial capital is the money and resources needed to begin and keep businesses operational.
All of those aspects must be addressed for business terrain to be evenly leveled for entrepreneurs of color. What does this mean? It could be an increase in apprentices and internships for people of color. Then they can become equipped with the necessary skills and knowledge needed to run a successful business. The venture capitalist space needs to be diversified so black entrepreneurs can begin to build good connections with people interested in funding them.
Get the Support a New Start Up Business Needs
Innovation and culture come together at Venture Noire to close the racial wealth gap in the United States. Minority and black-owned businesses and entrepreneurs can expect to get access to the capital, curriculum, and community that will help them succeed. Consider Venture Noire to be a catalyst that accelerates your creation and development. The goal is to help black and minority-owned businesses generate more wealth within their community.
Advance Your New Start Up Business
Turning to Venture Noire will open doors and give you business opportunities you wouldn’t otherwise benefit from. They encourage the minority and black community, which already has an abundance of drive and ideas, to establish a prosperous startup ecosystem. The basis for establishing Venture Noire itself was to empower under-resourced and under-represented entrepreneurs with the ability to break barriers.
The 3 C’s are Key Resources
Three key resources are the focus of support at Venture Noire, capital, curriculum, and community. Capital comes in the form of grants offered to promising entrepreneurial startups that act as a seed investment to get a venture off of the ground. This often an important first step that’s crucial to getting a business started.
Curriculum is essentially education in forms such as workshops, mentors, and speaker events. New start up business owners are taught about business development from filing taxes to operational management. Topics vary and could also include how to handle mobile marketing and credit card processing companies.
Community is one of the most beneficial aspects of Venture Noire. With access to other thriving entrepreneurs of color, you will get tangible help that has already been proven to work. Become part of a successful community of entrepreneurs by relying on this non-profit organization to help launch your business.
Business Creation Is the Fastest Way to Create a Thriving Ecosystem
Minority entrepreneurs and entrepreneurs of color make up the majority of underrepresented founders within the United States. It takes support during the early stages of opening a business to help entrepreneurs get a firm grip in the business world. That support comes in the form of personalized programs as well as resources.
With only 1% of venture capital going to entrepreneurs of color, it takes organizations like Venture Noire to fully fuel a new start up. When you consider that minorities have less of a chance of getting funding due to institutional bias and discriminatory lending practices, the future of minority-owned businesses succeeding seems bleak.
America has notoriously undercut nearly 1 million businesses that were minority-owned. Those numbers add up and total over nine million potential jobs lost with over $300 billion in national income. That disparity is being erased by non-profit organizations like Venture Noire.
Apply for Funding
Venture Noire has reported the facilitation and distribution of almost $180,000 of non-dilutive capital. They are always in active communication with organizations for support of the program. Black firms located within the U.S. are encouraged to apply for funding. The funding is distributed as prizes and they provide gifts-in-kind resources to founders and entrepreneurs that are underrepresented.
Businesses are encouraged to get more details, while investors are welcome to donate to Venture Noire along with the communities it serves. The non-profit also goes out of its way to raise funds during funding rounds. The first-round fundraiser involved a one-year grant directly from the Walton Family Foundation. Overall, 27 events have been hosted, they’ve worked with over 200 minority and black entrepreneurs and have assisted in launching four new businesses.
How Venture Noire Looks at Entrepreneurship
How a non-profit organization looks at entrepreneurship is important. Essentially, Venture Noire looks at entrepreneurship as problem-solving. They support the initiatives that foster a culture of entrepreneurship. They consider small business owners to be the lifeblood of America.
It’s all about job creation. Venture Noire is vested in creating a thriving ecosystem and economy full of minority entrepreneurs and entrepreneurs of color. What’s missing in the economy is more successful small businesses. With a focus on creating an ecosystem for success, Venture Noire is blazing a trail for future entrepreneurs of color. The focus is on the co-creation of innovation and partnership that allows entrepreneurs to invest in groundbreaking solutions by founders of color and female founders. A different future is possible and you, as a business owner of color, have a role in it.
Innovation Is Here for a Better World
Spectra Innovation Collective is a branch of Venture Noire with a firm focus on unity, progress, impact, and wealth creation. It’s a venture studio with a popular structure in place for creating startup companies in early stages that are solutions-focused and more capital efficient. They fully enable black innovation by supporting business creation activities with each member venture builder.
Venture Builders Solve Important Challenges
The goal behind Spectra Innovation Collective is to create more jobs that in turn create more wealth all while solving important challenges. Corroboration happens with black venture builders positioned to positively impact cared for communities and advance black innovation by creating early-stage companies. Basically, other black entrepreneurs are given the chance to engage in wealth creation, innovative opportunities, and early-stage business.
The Soul of Black Entrepreneurship Perseveres
Despite any challenges, there has been a significant rise in the number of minority and black entrepreneurs within the past few years. Do you have a great interest in investing in and starting your own business? With the help of Venture Noire and your own wellspring of drive and enthusiasm, building your own business is possible, regardless of socio-economical barriers. With access to the right resources, capital, and help you can start a new business and watch it grow into the successful business you’ve always envisioned.
Starting a business is never easy. There are a multitude of reasons starting a business is one of the biggest lift challenges you could undertake. Add discrimination of any type to that scenario and the uphill battle only becomes more difficult. Reach out to Venture Noire and learn how you can successfully start your own business with the right support and access to beneficial resources.