July 24, 2024
Taking the leap into entrepreneurship demands not only courage but resilience.
By Talisha Bekavac, Executive Vice President, U.S. Black Chambers
Taking the leap into entrepreneurship demands not only courage but resilience. Business owners must embrace uncertainty while finding ways to become stable and grow, often learning as they go. Yet, for Black business owners, this leap often requires more. Racial disparities, harmful biases, and increased socioeconomic factors that create a more challenging path compared to our non-Black peers can often threaten the progress and financial success of our entrepreneurial pursuits.
These barriers can manifest in a number of different ways. According to data from the Intuit QuickBooks Black History Month Survey, 79% of Black small business owners have experienced racism from a customer in the last year. Adding to this, nearly half of respondents say the fear of having to overcome racial stereotypes almost stopped them from starting their business.
While these realities may discourage us at times, they make for an even greater accomplishment for the community when we succeed against these odds, and today, many Black small businesses are finding ways to overcome the challenges at hand. At a time when most small businesses are lagging in employment, Black-owned small businesses are showing a surge. Despite accounting for only 3% of U.S. employer firms, 71% of Black-owned businesses reported they hired additional full-time or part-time staff in the past year, reinforcing our importance to the larger economy.
As Black business owners continue to make significant strides, here are some tips to consider as we work to cultivate businesses that are not only stable but thriving, and ultimately build wealth for our communities.
Every big achievement often starts with a single small stride. Whether that means deciding to open a business or gaining one new customer, these are not insignificant steps to future success. This holds true for Black business owners, many of whom are already taking risks and breaking new ground in their local communities and industries.
Data shows that 70% of Black small business owners say they’re the first in their family to own a business. They’re also innovating, with more than 2 in 5 (46%) noting they’re the only or part of a few businesses in their community offering their specific products/services.
These steps are something to be celebrated, and they’re milestones that ladder up to personal and communal success that can inspire others in our community to pursue their passions. Each milestone is a testament to what hard work and a clear vision can achieve. It’s OK to start small, focus on quality, and gradually expand your business. This will lay a solid foundation for lasting success.
When building your business, professionalism is key to establishing trust and reliability with your customers or clients. You deliver exceptional quality and service and deserve compensation for that gold standard. However, more than half of Black small business owners say they’re undercharging for their products and services, and with economic uncertainty still looming, nearly a third say they don’t plan to increase their prices within the next year or aren’t sure if they should given inflationary pressures.
It’s important to articulate the purpose of your business and the value you bring to the table. Researching what your peers are charging is also a great start to avoiding underselling yourself. But don’t undervalue the full extent of your business costs, including your time, materials, and overhead, when setting prices that reflect your value. Understanding these costs will help you build a realistic but transparent pricing model to educate customers about the quality and craftsmanship of your products or services.
Don’t underestimate the strength of the Black community as you build entrepreneurial success. As a business owner, you hold a powerful opportunity to help boost our economic empowerment. But that impact can be even greater when you act as a conscious consumer. Nearly 9 in 10 (88%) of Black small businesses recognize the buying power of Black consumers—more than larger corporations (83%).
By supporting other Black-owned businesses, we can revitalize our local economies, and ensure the Black dollar circulates longer within our community while we reach entrepreneurial success.
More than half of Black small business owners are using personal funds to cover business expenses, postponing their personal wealth as a result. There’s no definitive playbook for starting and growing a business, but there are resources and tools to help you manage and stay on top of your business finances, ranging from fintech products to organizational support. Nonprofits like the U.S. Black Chambers, and our national network of over 160 local Black chambers of commerce, have a wealth of educational tools and financial resources to help you gain financial access and manage your finances effectively on your journey to entrepreneurial success
The entrepreneurial journey starts with a vision and a dream. But it takes determination and resilience to succeed. Successful Black businesses serve as a powerful reminder that with the right mindset and financial resources, loyal customers will follow—and it’s the support of the Black community that will propel us all forward.
RELATED CONTENT: Michael Pugh Shares Tips For Black Business Month
Enter your Email Address below to get our fun-filled Newsletter!
© 2024 Black Enterprise. All Rights Reserved.
