According to The Economist, while campaigns emphasizing the support of Black businesses are important, the more vital contributions come from recieving equitable access to capital, education, and connections.
According to the outlet, while such campaigns are important to the success of Black-owned businesses, the more vital contributions come from receiving equitable access to capital, education, and connections.
As Shaundell Newsome, the founder of Sumnu Marketing, argued in an op-ed for Fortune, although there has been some assistance provided through the Bipartisan Infrastructure Act, mentorship in the Black economic community can also boost these businesses.
Newsome also called for larger corporations to support these businesses by creating or participating in programs that give financial assistance or resources that meet the specific needs of African-American-owned businesses.
Despite this, African-American business owners face a persistent dearth of capital, often at the hands of the banking industry, according to Larry Ivory, the president and CEO of the Illinois State Black Chamber of Commerce.
“One of the biggest and greatest challenges that African American business owners face is not getting access to the capital they need. Cisco data points out the fact that Black people get turned down at a much higher rate than Caucasians, even with the same credit scores and same factors being considered.” Ivory said.
RELATED CONTENT: Peep This List Of Financial Resources For Black Business Owners And Entrepreneurs
Source: Black Enterprise
