Despite an influx of startups across America, the number of business owners filing for bankruptcy has risen equally.
Yet, there is still a rising problem around startups closing shop, frequently leaving hundreds of people without employment.
Due to systemic racism and lack of access to resources needed to survive and grow, Black-owned businesses, unfortunately, know all too well what it is like to be denied funding from VC firms, and now other businesses are experiencing the same as investors have pulled back from funding.
Experts cite the overall state of the economy as the reason for the decline in VC firms backing startups across America. Still, DropboxDocSend senior data and trends analyst Justin Izzo remains hopeful for the future.
“If a company plans to raise money in the next six to eight months, I believe the climate will be better than it has been over the past 18 months,” Izzo told Inc. “There’s more likely than not to be a steady drip of funding, then turning more into a stream.”
Still, the alarming bankruptcy rates aren’t stopping aspiring entrepreneurs from hoping to receive a slice of the “American dream” pie.
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Source: Black Enterprise
