Challenges Facing African American Owned Businesses In 2023
African American owned businesses in the US have increased over the past few decades. According to the US Census Bureau’s Survey of Business Owners (2012), there were 2.6 million African American-owned businesses, employing over 1 million people and generating $150 billion in revenue. Some popular industries for African American-owned businesses include beauty and personal care, health services, and technology. However, these businesses still face challenges such as access to capital and networking opportunities.
African American-owned businesses face several challenges, including:
- Access to capital: Many African American entrepreneurs struggle to secure loans and investment from traditional financial institutions.
- Networking opportunities: African American business owners may have limited access to professional networks and business mentorship opportunities, which can affect their ability to grow and scale their businesses.
- Racism and discrimination: African American business owners often face discrimination in the marketplace, which can affect their ability to secure contracts, attract customers, and expand their businesses.
- Lack of government support: African American-owned businesses may not receive the same level of support from government programs and initiatives as other businesses.
- Limited resources: Many African American-owned businesses are small and have limited resources, which can affect their ability to compete with larger businesses.
Despite these challenges, African American entrepreneurs are continuing to start and grow successful businesses, often by leveraging technology and utilizing alternative sources of funding such as crowdfunding and community-based loan programs.
How can African American owned business overcome business challenges?
- Networking: Building relationships with other African American business owners and participating in local business organizations can provide access to resources, information, and opportunities.
- Access to capital: Seeking out funding sources specifically designed for minority-owned businesses, such as grants and loans.
- Marketing: Utilizing online and community-based platforms to target specific customer demographics and increase visibility.
- Diversifying products/services: Offering a wider range of products or services to appeal to a larger customer base.
- Continuously improving: Staying up-to-date on industry trends and continuously improving business operations to stay competitive.
- Mentorship: Finding a mentor in a similar industry who can offer guidance and support.
