Written by Renzie Richardson, BHFL Group, www.bhflgroup.com
African Americans are starting more small businesses than everyone in the market today. Many people have discussed this fact and have come up with all types of reasons. Regardless of the reasons, African Americans are dealing with the same struggles.
This article will talk about the three facts that you should know.
1. Poverty is at an all-time high among African Americans
African Americans are disproportionately impacted by poverty, with a poverty rate of 27% in 2016.
Poverty is defined as an individual’s household income is below the federal poverty threshold, which is currently $25,750 for a family of four. This means that one in four African Americans lives in poverty.
Several factors have contributed to this high poverty rate among African Americans, including racial discrimination and lower educational attainment levels.
2. African American businesses are struggling to get the funding they need to thrive
African American businesses are struggling to get the funding they need to thrive. There are several reasons for this, including racial bias, but it’s also because African Americans have less access to credit than any other ethnic group.
This is because African Americans often don’t have the same credit history or financial stability as other ethnic groups. So, when they apply for loans, they’re often rejected or given a lower amount than their white counterparts. This leaves them with few options for starting their own business and growing their wealth.
3. Black entrepreneurs need mentors
The most pressing needs of Black entrepreneurs are capital, mentorship, and access to networks. Often, Black entrepreneurs are less likely to receive loans than their White counterparts.
Most people who have a successful business have mentors who helped them along the way. Mentors can provide much support in marketing, sales, and management. This is important because many Black entrepreneurs don’t have the same networks that their White counterparts do.
Yes, there are struggles. Struggles that African American business owners can overcome. Finding a mentor or joining an organization that will give you access the resources you need to grow your business.
At the BHFL Group, we have made it our mission to support small business owners. Our team of professionals will help you make the right decisions that will keep you on the right path to a successful business. Schedule you FREE session today to discuss how the BHFL Group can help you.