Written by Mona Lisa Prosper
The entrepreneurial journey is full of uncharted territory full of hurdles, leaps and bounds, and moments that truly test a person’s resilience and mindset.
For Black women entrepreneurs, these challenges can be even more complex. Black women often suffer from “sticky floors” experiences in corporate work environments (a metaphor for a type of job discrimination that keeps disadvantaged people in lower employment status) and are less likely to start their own businesses. I often feel like I want to.
More and more Black women are creating opportunities for themselves to avoid corporate roles that limit their career advancement and income potential. accelerated speed. A 2021 study conducted by the Black Business and Professional Association (BBPA), Casa Foundation for International Development, and De Sedulous Women Leaders in collaboration with researchers from the Women’s Entrepreneurship Knowledge Hub (WEKH) found that Black women entrepreneurs The reality we face has become clear. Many women are taking action and making their visions come true. they face serious challenges These include systemic racism, anti-Black racism, unequal access to resources to support businesses, and lack of funding.
Progress has been made in supporting Black entrepreneurs over the past four years, especially since the public outcry that followed the killing of George Floyd. Corporations, governments, banks, and venture capitalists are all being forced to look at structural biases, and many of the organizations I encounter in my work future entrepreneur director of Black Entrepreneur Startup Program There is concrete data that each organization can use to demonstrate progress.
While an organization working to fund Black entrepreneurs sounds promising, this does not indicate that this type of work no longer needs to continue. Supporting Black entrepreneurs is not a trend and should not be a business decision that prioritizes only the fiscal year. Rather, it is part of the organization’s belief in fairness and should be embraced by the senior leadership team. As women business owners, we wield tremendous influence and power, and we can use that position to support and champion the success of Black women entrepreneurs.
Harnessing the transformative power of mentorship
Mentorship relationships can change completely. The great thing is that it’s a two-way street that provides growth and learning opportunities for both mentor and mentee. The most common feedback I receive from mentors is that they never expected how much value they would get from it.
Mentors share critical knowledge and experience to help entrepreneurs avoid costly mistakes and clarify strategic decisions. Additionally, research shows that mentorship directly impacts an entrepreneur’s chances of success. An astonishing 70% of small businesses I was instructed It lasted more than 5 years. This is twice the survival rate of unguided companies. Additionally, 92% of small business owners agreed that: Mentors have direct influence About growth and survival.
As a female business owner, mentorship is a great way to uplift Black entrepreneurs. If you’ve never been a formal mentor before, here’s what you need to do: Connect with your organization Those that offer mentorship programs.organizations like future entrepreneur Other nonprofits that run formal mentorship pairings are a great way to get paired with a great entrepreneur and get started.
Promoting financial access
The investment and finance industry remains overwhelmingly male and white. Only 2.3% of VC funding goes to women, and even worse, only 2.3% goes to women. 0.35% for black women.
These statistics may be discouraging, but as women leaders, we have the power to provide a critical boost to women-led businesses that deserve equity in our network. Even if you are not in a position to invest, referrals, connections, and recommendations are powerful ways to reduce barriers surrounding accessing capital.
Another aspect of financial access that I highlight is that entrepreneurs have financial literacy. I have seen many female entrepreneurs who never considered themselves financially savvy build incredible cash flow models and financial projections through the lending process. Often, once women have secured the initial funding injection, they are distanced from the finances of the business, ultimately to their detriment.
As women, we can encourage each other to confront the potential discomforts of managing business finances head-on. For the Black women entrepreneurs I work with, I am committed to helping them navigate the growth cliff that many Black-led businesses face as they struggle to secure their next round of funding. emphasizes that this kind of economic empowerment is essential.
Be intentional about inclusion
Equality can only be achieved through intentional and sustained effort. As a leader, you can play your role by being open and willing to learn. I will never forget a moment early in my career when I was president of the Quebec Women’s Youth Chamber of Commerce. I sat alongside a diverse group of women who are members of our board of directors and we were brainstorming names of inspiring women entrepreneurs we’d like to have as speakers at our event. As I was writing down their suggestions, I noticed that all of the names that came up were white women, and all of them were great entrepreneurs with great visibility. Knowing it was a safe place, I felt comfortable handling the situation and letting them figure out what had happened. This was an eye-opener for many of us. To undertake the task of conducting research to find Black and other entrepreneurs of color who are equally noteworthy and truly reflect our values of diversity, equity, and inclusion. was essential. We all have to be willing to have uncomfortable conversations and be intentional about our approach to DEI work.
call to action
As a leader, you are in a great position to champion equality through your very actions. Join me in helping Black women identify and succeed as entrepreneurs.
Mona Lisa Prosper lives in Montreal. Black Entrepreneur Startup Program in future entrepreneuris a national nonprofit organization dedicated to supporting entrepreneurs ages 18-39 with financing, mentorship, and business resources.
