Despite recent attention to diversity, equity and inclusion, minority small business owners still face economic and social barriers to growing their businesses.
The study found that there are significant racial disparities in wealth, income, and access to financial resources, with Black, Hispanic, and Latino households holding 32 cents and 47 cents, respectively, of every dollar held by white households. Additionally, COVID-19 has had a devastating impact on minority-owned businesses, which are nearly twice as likely as non-minority-owned businesses to permanently close as a result of the pandemic.
“Minority-owned small businesses play a critical role in the health of our nation's economy,” said Mikal Qualls, executive director at Chase. “They create jobs and drive innovation in this country, but they still face challenges when it comes to access to capital and networks. That's why we're committing $30 billion over the next five years to advance racial equity, drive an inclusive economic recovery and break down systemic barriers for minority small business owners and their communities.”
Their $30 billion racial equity initiative is one example of how more companies are investing in the growth of underrepresented small businesses and helping diverse entrepreneurs soar to new heights. Here are 4 ways you can leverage these services to grow your business.
One-on-one coaching
Black, Hispanic and Latino business owners face unique barriers in addition to the common challenges of starting a business. Seeking the expertise of a coach or mentor can help them navigate business challenges and plan for long-term growth opportunities.
A business coach is an expert who helps you and your business grow. This person can:
- We offer perspective and clarity based on your individual situation.
- We partner with you to build a roadmap for success.
- It helps you improve your skills by building on your strengths and improving your weaknesses.
- We provide minority-owned businesses with focused resources and insights based on their areas of expertise.
A business mentor plays a slightly different but equally valuable role. A mentor can:
- We offer expert advice based on our experience starting and growing our own companies.
- We share valuable information on how to best move forward from obstacles.
- It opens the door to new networking opportunities.
If you don’t have a mentor lined up yet, many organizations offer free mentorship programs designed specifically for minority entrepreneurs. For example, SCORE for Black Entrepreneurs matches clients with experienced mentors who provide free one-on-one mentoring sessions.
Banking
Understanding the financial health of your business is important to the ongoing success of your business. Businesses need to generate profits to survive, not just maintain a positive cash flow.
When searching for affordable small business loans, minority entrepreneurs often have a harder time securing the financing they need than non-minority owners. Fortunately, there are numerous small business grants and other sources of funding that can help close this gap.
Educational Seminars and Tools
There are numerous seminars available to minority business owners and employees. Chase for Business, for example, offers a collection of useful tools that minority businesses can access to help them grow, including one-on-one opportunities to connect with business banking experts, on-demand Minority Business Enterprise (MBE) certification, and access to the Chase for Business Resource Center and the JPMorgan Chase Supplier Diversity Network (SDN), both of which are packed with guidelines on financial wellness.
Not only is this program a great resource for budding entrepreneurs, but it also provides me with a fulfilling opportunity to act as a bridge from the world of finance and banking to help underrepresented communities succeed as entrepreneurs.
Rashida Winfrey, Senior Business Consultant at Chase
Community Resources
Community resources can be a great asset for minority-owned businesses.
- State-level resources. Many states, and even larger cities, have local resources for minority-owned business owners. For example, Pennsylvania offers resources such as the Small Diverse Business Capital Access Program and the Pennsylvania Business One-Stop Shop.
- Minority-focused resources. Minority business owners can also take advantage of resources that cater to their specific communities, such as Black Enterprise Magazine and the Latino Business Action Network.
- chamber of commerce. Every major metropolitan area has a local chamber of commerce. Entrepreneurs can join their local chamber of commerce to gain mentorship and partnerships with other business owners in the area. Minority entrepreneurs can also join chambers that serve their communities, such as the National Black Chamber of Commerce or the United States Hispanic Chamber of Commerce.
How Chase can help
Chase is committed to accelerating the growth of Black, Hispanic and Latino small businesses. Over the next five years, the company plans to provide an additional 15,000 new loans to small businesses in majority Black, Hispanic and Latino neighborhoods and disburse an additional $750 million to Black and Latino suppliers.
To further support this effort, Chase recently launched a new program in 13 cities across the U.S. to provide entrepreneurs with one-on-one coaching, mentorship and technical assistance. The program is available to all small business owners, Chase customers and non-customers alike.
Here's how it works:
- Small business owners are connected to Chase's trained senior business consultants.
- Consultants provide ongoing advisory services such as business development coaching and financial planning.
“Not only is this program a great resource for budding entrepreneurs, it also provides a fulfilling opportunity to serve as a bridge from the world of finance and banking to help underrepresented communities become successful entrepreneurs,” said Rashida Winfrey, an Atlanta-based senior business consultant for Chase Bank.
Winfrey has helped local entrepreneurs like DJ-turned-bike-business-owner DJ Mars of Made by Mars build inventory through business credit and plan for long-term growth, including opening permanent storefronts.
Minority entrepreneurs often face obstacles to expanding their businesses, including limited access to adequate capital and a lack of a network of customers, peers, and professionals. With the right resources and support, minority business owners can overcome these barriers and grow their businesses further than ever before.
For informational/educational purposes only: Views expressed in this article may differ from those of other employees and departments of JPMorgan Chase & Co. Views and strategies expressed may not be appropriate for everyone and are not intended as specific advice/recommendations to any particular individual. Information has been obtained from sources believed to be reliable, but neither JPMorgan Chase & Co. nor any of its affiliates and/or subsidiaries guarantee its completeness or accuracy. Please consider your needs and objectives carefully and consult appropriate professionals before making any decisions. Outlook and past performance are no guarantee of future results.
JPMorgan Chase Bank, NA Member FDIC. An Equal Opportunity Lender, ©2023 JPMorgan Chase & Co.
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