Sitting on a couch across from a stack of green tie-dyed shirts, Shamika Robinson beams with pride as she talks about the downtown Charleston office space she’s owned for a little over a year.
In 2022, Mr. Robinson launched Luv Enterprises LLC., which rents cars to people under the age of 25, people with bad credit, and people who don’t have or can’t access major rental agencies. As part of her motto of “Moving People with Love,” she crisscrosses West Virginia delivering rental cars directly to people in need.
“I quickly started to realize, ‘Oh my God, I’m the last step for a lot of people,'” Robinson said.
However, financing the business was costly. Luv Enterprises was built almost entirely with her own money, including a full line of credit and a car registered in the name of Robinson and his family.
“That’s one of the unfortunate things,” she said. “When you start a new business, no one will give you money based on your dreams.”
Despite the variety of financing options in the state and the abundance of capital available, new business owners often struggle to find ways to raise enough capital and get the right support. It is said that there are many things.
West Virginia leaders have long touted the state as “open for business,” a move that attracts new businesses and makes the Mountain State a haven for entrepreneurs and small business owners. This was done with the hope of promoting it as a place.
Economic Development Secretary Mitch Carmichael told lawmakers earlier this year, “We can go and hire big players, we can win and celebrate big home runs, but we can actually grow the economy.” It’s up to the singles players to do it.”
However, much of the support for small businesses, including loans, marketing assistance, and other financing, is more accessible to established businesses that have been in business for several years. Those with risky ideas, new entrepreneurs still exploring, and businesses that have yet to fully prove themselves have an even harder time accessing West Virginia’s growing network of entrepreneurs.
“We don’t necessarily have the processes in place to accommodate early-stage startups,” says the co-founder of Entrepreneurship Ecosystem Experts, a consulting firm focused on connecting local entrepreneurs with resources. , says Carrie White.
Expanding the support network needed by thousands of people
When you talk about businesses in West Virginia, you’re almost certainly talking about small businesses. According to federal data, as of 2023, there were nearly 110,000 small businesses in the state, accounting for about 98.8% of all businesses in the state.
But running a small business can be difficult. Money is often a big barrier. Unlike nonprofits, which can receive grants and philanthropic support, small businesses often self-finance, find support from investors, or take out loans to operate. We are doing
And obtaining such loans can be complex, with companies not only showing potential lenders a strong plan for how they can make a profit, but also ensuring they have good credit and no defaults. In some cases, you will also be required to have collateral to cover the loan amount. This could make it difficult for startups that are still building credibility to raise the funds they need to get started.
“Time and time again, there is a need for funds, a need to understand the types of funds available, and a need for credit repair to get people into a position where they can borrow money,” Nora Myers said. Stated. , executive director of the West Virginia Women’s Business Center.
West Virginia Department of Economic Development spokesman Andy Malinoski said in an email that the state is offering some assistance to small business owners, adding that many of the state’s resources and programs are listed in a press release. and success stories and are being disseminated across the state’s social media,” he added. ”
The state also launched West Virginia Business Link. It provides details about various local support providers, banks and other entrepreneurial organizations in the hope that people can better connect with the resources they need. BusinessLink is part of the State Small Business Development Center, the state’s flagship agency focused on entrepreneurship and small business support.
Still, this knowledge can be difficult to gain in front of first-time business owners who don’t know where to look. And even with the knowledge, it can be difficult to overcome some of the funding barriers that startups face.
“We have a great traditional program in the state,” White said. He also collaborates with the annual Bridging Innovation Summit and works with local governments to support small businesses and expand entrepreneurship options in the state. “What we’re looking at now are more non-traditional financing options and we need to take a little bit more risk.”
Local programs provide resources and free money
J.C. Henson, co-owner of Oakwood Barbecue Company in Martinsburg, said that after being denied a loan years ago, he and two of his business partners sold smashburgers and fries. He said they decided to rely on their own funds to finance the food business that serves chicken. Sandwiches and traditional barbecue four times a month are also available.
“Unfortunately, it wasn’t a risk that many people were willing to take because we are a restaurant-style business and the failure rate is so high,” Henson said.
Last year, Henson and his partners discovered a potential new funding source: a local pitch competition called Build-Up Berkeley. Launched in 2023 by the Berkeley County Development Authority, the program is part financial training, part Shark Tank, with 10 small businesses receiving coaching and special classes before joining the 10,000-person program provided by CNB Bank. Participate in a pitch contest for a dollar prize. Jennifer Smith, director of the Executive Development Authority, said the decision to combine small business education with a competition with no strings attached prizes was intentional.
“We wanted to add capital because we felt we needed it,” she said. “Large companies have a lot of incentives, but small businesses don’t have as many.”
Oakwood BBQ Company won the Build-Up Berkeley competition, earning a $10,000 cash prize and an additional “People’s Choice” award. This funding is critical for the growing food stall to expand its business and move into selling alcohol.
“We did some renovation work,” Henson said, adding that the cash helped with several construction projects, including adding a new roof to the property and building a bathroom on the property. Ta. The contest was also helpful to Tyler Kolb, who last year partnered with his wife to launch his event planning business and venue provider Cloud Nine Events. Cloud Nine was his third place winner and won $2,000.
Kolb said there aren’t many grants available in the state, so the competition is a good way to get extra cash to cover business costs.
“It’s a win-win. You get advertising exposure, you get through and hopefully win an award,” he said. “So, obviously we were able to keep the initial costs down.”
New state initiative aims to provide more help
Mr White said helping early-stage companies raise capital and access state services requires a deliberate effort to promote what is available. This includes local investors willing to provide seed money in exchange for equity in the business, capital investment programs, banks willing to provide small loans to support entrepreneurs, and small business owners. This includes getting more information about local economic development authorities willing to help. .
The state already has initiatives that could help, including the West Virginia Capital Access Program, which partners with local development authorities, early-stage investment groups, and the West Virginia Jobs Investment Trust to provide more than just venture capital for startups. We have started some programs. -Loans that are riskier than those traditionally offered by banks.
Robinson, who owns a rental car company, initially obtained outside funding to maintain his fleet and secure office space through a lender recommended by the state Small Business Administration. But after paying off the first loan and the roughly 60 percent interest that came with it, Robinson became dissatisfied. In the months that followed, her experience discouraged her from seeking additional financial support from private lenders or the state.
Now, after running her business for about two years, she recently received her first grant from the City of Charleston, which included $5,000. She is using the funds to begin automating her car rental contract process.
And as his business expands, Robinson says he’s starting to move toward new goals. The idea is to start a dealership on Charleston’s West Side that will provide affordable cars and services to communities in need.
“I think people need to see success to know it’s possible,” Robinson says. “Otherwise they would never believe it.”
