Many local pro-business organizations frequently put out calls for more minority-owned businesses to open, but getting them to do so is sometimes easier said than done.
While any kind of new business venture is a risk, it’s often a greater challenge for people of different races or cultures to set up shop and provide products and services. The benefits of a successful business or several businesses lead to great dividends, starting with a stronger local economy and a more diverse community.
A minority-owned business that’s doing well can encourage others to participate, especially if word starts to get out about various tax benefits and funding incentives available to encourage and stimulate local businesses.
But getting to this point can be a challenge in some communities so people interested in establishing minority-owned businesses should be ready for anything.
- Lack of community support. Communities with certain types of minority groups can help share experience, resources, and general networking. Some towns may have formally established organizations to encourage these cultures, others may have informal get-togethers. But if you’re the only one or there are very few of your kind, it could be difficult knowing where to start.
- Discrimination. Whether it’s active racism or discrimination or fear and ignorance of the unknown, there will be people who don’t trust you and don’t want you around. It may be active or even subtle like delays in permitting. Some people involve the authorities or media, others try to get to know the community and show that the best counter to this is to be successful and a good neighbor.
- Cost challenges. Minority-owned businesses may have great ideas but may not have the cash flow or know where or how to seek funding. So their business plan could be limited at first. But with some education about local resources along with loan and grant information, they could learn about more options. Plus, even if the may not qualify for traditional loans or even want to take this step, they could potentially explore alternative financing options.
For more strategies for minority-owned businesses, visit Grecco Capital.