Black entrepreneurs in Minnesota face tough challenges and a lack of guidance as they try to break into the business world themselves.
That was a key takeaway from a community forum hosted by Sahan Journal that drew more than 20 attendees to Minneapolis’ Capri Theatre last week.
Panelists at “Meet the Boss: Me, a Black and African Entrepreneur Talks Success in Minnesota” reflected on their own journeys as entrepreneurs of color and discussed the state’s business climate and the major obstacles aspiring entrepreneurs face, including a lack of mentors and funding.
Finally, they offered tips that they believe would be useful for anyone looking to start their own business.
The panelists are:
- Beatrice Adenodi, interim director of economic and community development at ACER
- David Manley, founder and CEO of tech startup Juduh
- Modo Wanda, CEO of African Fashion Week Minnesota
- Dr. Steven Mena, co-owner of Lions Gym & Wellness Center
- Tom Beavis, founder and chief strategy officer, Pimento Jamaican Kitchen
The community discussion comes days after the four-year anniversary of the murder of George Floyd in Minneapolis. Between May 2020 and October 2022, U.S. companies have pledged to donate roughly $340 billion to support racial equity efforts, according to the McKinsey Institute for Black Economic Mobility.
In 2023, the Minnesota Legislature approved $125 million to help promote business and redevelop several areas in St. Paul and Minneapolis, including the Lake Street Corridor.
However, Adenodi said he felt the financial support may not have reached its intended targets and that some Black entrepreneurs were not fully aware of the funding opportunities available to them.
“Progress is still slow,” Adenodi said. “We still have a long way to go to meet our peers in different communities.”
Many of the panelists said they faced funding challenges when starting their businesses.
Menha said he was unable to apply for some loans because he didn’t have a green card when he started his business.
“I wasn’t eligible for the funds available to citizens and green card holders, so I had to save money by doing direct, paid work, like washing dishes,” Megna said.
Beavis said many entrepreneurs of color are unable to get loans from traditional banks and must rely on nonprofit lenders and community support. He launched Pimento with a Kickstarter campaign, but that took away time from building his business in other ways, like developing new recipes.
“It took me 10 years to get one line of credit while running a multi-million dollar company,” he said. “And that line of credit was $20,000, right? Meanwhile, my peers have lines of credit that are $1 million. That’s the reality. There is a disparity.”
Manley and Beavis both worked for corporations before going out on their own.
Manley only left his job two years ago and wasn’t added to the tech company’s payroll until about six months later.
As an entrepreneur, he said what he cares about most is not the money, but creating solution-based businesses. Judah connects tech engineers in West Africa with companies in Minnesota. He’s also started other businesses, including a cassava farm that feeds thousands of children in Liberia.
With family roots in Cameroon and Nigeria, Wanda has expanded African Fashion Week to showcase more African cultures rather than just being a platform to showcase the culture of one or two countries.
She told the audience that many entrepreneurs have a “yearning” to do something special.
“If I wasn’t in fashion or entertainment, I wouldn’t know what I would do,” she said.
Tips for aspiring entrepreneurs
All panelists acknowledged the obstacles they experienced and lessons they learned while building their businesses.
Adenodi, who consults with many small businesses, said it was important for entrepreneurs to value their time, charge for their services and avoid burnout.
Many entrepreneurs are attracted to the idea of becoming their own business, but it can take creative problem-solving skills and dogged determination to make your idea a success.
“You’re going to need the motivation to get up every morning and do the hard work to run your own business,” she said.
Menha said he faced racism and doubts about his abilities from potential customers when opening his gym, but he had to overcome them.
“Your accent was already a disqualifier before you even showed up,” Menya said.
Beavis said he learned an important business lesson early on when he launched a Thanksgiving Groupon deal offering a jerked turkey and 10 side dishes for $99.
He expected five orders, but ended up with 100. A snowstorm delayed food deliveries, and he had the “worst day at work” of his life.
After 72 hours of no sleep and cooking, he felt like he’d ruined a metropolitan Thanksgiving party, but one customer gave him an important insight.
“She said, ‘I know you could do it, but all I wanted was meat,'” Beavis said.
“So the solution is, even if I [do it all]does that mean I have to? Stay focused on the core, stay focused on the essentials, stay focused on what is really driving the solution.”
