HAVELOCK, NC (WITN) – The Coalition to Back Black Businesses awarded $25,000 in grants to 20 black-owned small businesses in June 2022, including one in East Carolina.
Lending Tree research shows that only 2.4% of businesses in the United States are owned by black people.
Census and Federal Reserve data collected during the pandemic shows that black-owned small businesses have been twice as likely to close than other businesses, with 41% closing.
dr Che Ward described some of the challenges her behavioral health and wellness business has faced during the pandemic.
“Every month is about you being able to swim and fight and then try to keep your head above water. A few months on the bottom line was great, but then there has to be growth because we need assistants. We need cleaning services. We had to do assessments and assessments are expensive. I mean, just to do an accurate autism test, total supplies for that are somewhere around $3,000 to $5,000,” Ward explained.
Ward’s business received a $25,000 grant from the Coalition to Back Black Businesses.
“There are 3 million black-owned small businesses when you include both employers and non-employers, and that’s a lot of businesses that need to close. For many of them, the number one need is capital,” said Coalition to Back Black Businesses director Lawrence Bowdish.
Small Black businesses can apply for the grant, and once approved, business owners enter a year-long coaching platform to learn tools needed to properly allocate funds and market their business.
The Coalition to Back Black Businesses says it awarded 600 $5,000 grants in 2021, but this year reduced the number of businesses to 20 for the 2021-2022 cycle.
The coalition says the grant application cycle will begin again in the second half of August for 2022-2023 applicants.
For information on how to participate in the August grant funding opportunity, visit the Coalition to Back Black Businesses website.
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Why do we need more Black entrepreneurs?
Black businesses create an average of 4 jobs per business, compared to 23 for all businesses. If the average employee per black company achieved parity, it would create about 12,900 new jobs. Black businesses pay their employees an average of $36,372 compared to $53,338 for all businesses.
Why do we need more black-owned businesses? When Black-owned businesses are in high demand, businesses become more profitable. Supporting these companies helps create entrepreneurial opportunities. Read also : Businesses and stakeholders invited to take part in Disadvantaged Business Enterprise webinars on 28 June. Entrepreneurship fosters economic prosperity and serves as a bridge for low-income families to rise into the middle class.
Why is it important to support minority owned businesses?
Small businesses and entrepreneurs have always been wealth builders in our society. By supporting Black-owned businesses, green Americans can create more opportunities for meaningful savings, home ownership, credit accumulation and generational wealth.
Why is it important to buy Black?
By putting your money into Black-run businesses, that money can be used to advance the Black community. Those dollars are then fed back into both business and income for black households. On the same subject : Innovation. Create. Business Building.. An increase in these incomes can be used for higher education and skills training for the black community.
How does race affect entrepreneurship?
THE STATUS OF RACE AND ENTREPRENEURSHIP RESEARCH Black and Hispanic-owned firms have higher failure rates than White and Asian-owned firms. This may interest you : The Spears Business Research Initiative focuses on issues that affect businesses, communities. Studies show that there are large racial/ethnic disparities in both self-employment rates and business performance.
How can I help minority?
7 ways to help minority-owned businesses
- Buy from them. …
- Skip services that benefit businesses. …
- Advertise your goods in your company. …
- Write online reviews for minority-owned businesses. …
- Sponsor a minority-owned business through the Chamber of Commerce. …
- Offer Sliding Scale Services. …
- Support the diversity of the internal workforce.
Why is it important to support minorities? Central to the rights of minorities is the promotion and protection of their identity. Fostering and protecting their identities prevents forced assimilation and the loss of cultures, religions and languages - the basis of the world’s wealth and therefore part of its heritage.
Why are minority-owned businesses important?
Minority entrepreneurs play an important role in economic growth and community development, not only because they are productive members of the economy, but because they help extend the same opportunities to others by creating jobs.
Who qualifies as a minority?
A minority person is a citizen of the United States who is African American, Hispanic, Native American, Asian Pacific, or Asian Indian. African American is a US citizen who is from one of Africa’s African racial groups and is regarded as such by the community to which the person claims to belong.
How do you prove a minority?
Proof of Minority Status The most common method for applicants to prove their ethnic or racial background is to present a parent’s or grandparent’s birth certificate or death certificate during the authentication process.
Are black-owned businesses less successful?
Black-owned businesses have lower revenues and profits, hire fewer employees, and are more likely to close than white-owned businesses (U.S. Census Bureau 1997). The relative lack of success of black-owned businesses in the United States is a concern for policymakers.
What Percentage of Black-Owned Businesses Fail? Even before the pandemic, eight out of ten black businesses failed within the first 18 months. U.S. Census data shows that 58% of Black business owners describe the health of their business as “at risk” or “failing.”
Why are black businesses less successful?
The relative lack of success of black-owned businesses is partly due to their owners having less seed capital, disadvantaged family backgrounds, and less education.
Why did Black-owned businesses struggle?
The wealth gap due to racial inequality and chronic underfunding left black businesses unprepared for COVID-19. Coronavirus shutdowns and social distancing have had a huge impact on local businesses that have relied on face-to-face interactions – traditional mainstays for black entrepreneurs.