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Starting a business is no easy task, and it’s not uncommon for Black entrepreneurs just getting started to feel alone in their business endeavors.
But there is a wide swath of resources for business owners available — plenty of which don’t require a lot of additional capital to obtain.
Joy Butts, a senior business consultant for JPMorgan Chase, told Ross Mac on Yahoo Finance's Financial Freestyle (watch the video above or listen below) that an entrepreneur’s community is one of the most significant resources someone getting started could have.
“A lot of Black businesses, and just businesses in general, they don't necessarily have the infrastructure to realize the dreams that they have,” Butts said. “Having someone there to walk alongside you, to ease the pain, and knowing that you're not alone in the journey is so important.”
Butts noted that Black businesses — and Black woman-owned businesses, specifically — represent one of the “fastest-growing segments in entrepreneurship.”
In 2023, the US Census reported that there were 161,031 Black-owned businesses employing more than 1.4 million people in the US.
Black-owned businesses have been growing rapidly since before the onset of the pandemic. Between 2017 and 2020, the number of Black businesses grew by 13.6%, according to the Brookings Institution, more than the 0.53% increase in overall businesses during the same period.
Resources for Black entrepreneurs
Building community early, coupled with some creative thinking and maybe a little bit of help from artificial intelligence, can help most Black entrepreneurs get on their feet, according to Butts.
There are, of course, some key players who should already be involved in a business early on: a banker, an accountant, and an attorney, for starters.
“But you also need some other people to support that journey as well," Butts said. "You really need other business owners that have gone through the journey before."
As those key relationships are built, however, don’t discredit the relationships already started, namely with those three key players.
Bankers, for example, should be someone who “knows you [and] the ins and outs of your business” so they can better advocate for you, Butts said.
She added that those still struggling to find those building blocks can look for complementary programs, whether through the financial institution invested in the business or within the business community, as they can offer guidance to resources.
While it may seem like investing heavily in parts of the business, such as marketing, should be a high priority, these avenues don’t always require a large financial investment right away.
“There are so many platforms where if you set it in motion, it'll do it for you,” Butts continued.
AI can be an incredible resource in this capacity, offering a cost-effective way to get the ball rolling in those areas while capital is tight.
However, it may take some time to implement and get right. As Butts said, “Give yourself patience because it’s a journey.”
Every Monday, Financial Freestyle host Ross Mac talks with key guests to discuss their wealth-building journeys and what it takes to build a lasting financial footprint. You can find more episodes on our video hub or watch on your preferred streaming service.
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