Supporting black-owned businesses in the City of Reading is essential. Securing capital investment and access to loans and educational programs for business management have long been disproportionately difficult for people of color. However, our black community is resilient and eager to work hard and continue their desire to become business owners.
Black small businesses often face difficulties because they lack start-up funding, and family members and friends often have similar financial constraints. According to Brookings Institution, black people represent 12.7 percent of the U.S. population but only 4.3 percent of the 22.2 million business owners in the country. Only six percent of small businesses in majority-Black communities and 11 percent of small businesses in majority-Latinx communities have more than 14 days’ worth of cash on hand in case of emergencies, compared to 65 percent of companies in majority-white communities, according to a J.P. Morgan article.
The Pennsylvania Department of Community and Economic Development is one of the first steps to access programs for minority-owned businesses. They offer eight resources for minority-owned businesses in Pennsylvania. These programs focus on helping small business owners become certified as a small diverse business, applying for funding, or finding mentors and contracts with government agencies.
One way to address these issues is to broaden available resources such as mentorship and funding to give opportunities to minority entrepreneurs.
Reference: Breaking Down Systemic Barriers for Minority-Owned Small … – POLITICO. www.politico.com/sponsored-content/2021/04/breaking-barriers-for-businesses
Business Plan Expert Writer & Entrepreneurship Educator
Co-Owner of My Source Entrepreneur
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