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Social media has a way of glamorizing entrepreneurship with all the reels on how to “make six figures in six weeks” click-bait content, but anyone who has ever started and retained a business knows that entrepreneurship is anything but glamorous. If you identify as a first-generation entrepreneur, you are strapped with your own unique set of challenges that will test your resilience, ingenuity, and determination.
The journey of a Black business owner is not the same as the journey of business owners in the majority population. In this blog post, we are going to dig into the hardships faced by many first-generation Black entrepreneurs, share tips on how to overcome some of those barriers, and celebrate our wins … because we are out here winning.
The path of a first-generation entrepreneur is like forging a trail through uncharted territory. For Black small business owners, the weight of creating a legacy and breaking cycles of adversity and trauma often accompany this task. Being the first in your family to embark on the journey of entrepreneurship is scary, as there are no established familial networks to tap into for guidance and support. This isolation can be daunting, frustrating, and can oftentimes make you question pursuing this path in the first place.
Being the “first” one to do anything - whether going to college or starting a business - is scary. One way to keep yourself motivated through hardships is to document your journey. Documenting your journey helps to remind you of the things that you’ve already overcome, and the things you’ve already accomplished. Not only does this help you to keep a record of your small wins, but it also could be helpful to others as they come up as well. Whether in a journal, on social media, or with your friends, documenting your journey can keep you accountable and motivated.
One of the most pressing challenges for any entrepreneur, particularly those from marginalized communities, is securing financial stability. Many first-generation Black entrepreneurs may not have access to generational wealth or resources, which can make securing startup capital all the more challenging. Traditional financial institutions have historically underserved minority communities, leading to higher barriers for accessing loans and funding. In fact, according to Fundera, just 1% of Black entrepreneurs obtain business loans in their first year compared to 7% of white business owners. This financial uncertainty often requires innovative approaches to funding, such as seeking out grants, angel investors, or crowdfunding platforms that resonate with their vision. That’s a large part of the reason Guava was created – to support Black entrepreneurs as access to capital wanes.
“We have the acumen, the creativity, the knowledge, and even the manpower. But without access to capital, our ideas come to a standstill, are stolen and are manipulated.” - Ron Busby, President of the US Black Chambers.
Keep your eye out for funding opportunities, grants, or pitch competitions for Black entrepreneurs. Nerdwallet released an article highlighting 27 Small-Business Grants for Minority Entrepreneurs. Also, Shelly Bell from Black Girl Ventures, The National Black Business Pitch, and many others offer opportunities for Black entrepreneurs to showcase their businesses with the possibility of gaining funding. It can be nerve-racking, but putting yourself out there is the first step.
First-generation Black entrepreneurs are often battling not just market competition, but also preconceived notions and stereotypes. There's a prevalent bias that undermines proven expertise and capabilities. Stereotypes like having poor customer service or having lazy workers, that sometimes even Black business owners themselves buy into. Overcoming these stereotypes requires not only having to prove yourself, but also changing societal perceptions. The resilience needed to rise above these challenges is a testament to the unwavering commitment of challenging the status quo.
Human connection and exposure helps to combat stereotypes amongst POC business owners. Aligning yourself with mentors and committing to attending networking events helps build your network but also helps dismantle the perception that all POC business owners are the same. Many times, the things you’re experiencing are not just you – it’s been happening to others long before you. Talking through your challenges with others can help to support you in fighting negative stereotypes and bias.
You’re not an imposter. You belong here.
Established networks and mentorship programs are often instrumental in any entrepreneur's success. However, for first-generation Black entrepreneurs, these resources can be elusive. The absence of relatable mentors who share similar experiences can hinder professional growth. Nevertheless, mentorship scarcity has fueled a desire to pay it forward. Many first-generation Black entrepreneurs are determined to become the mentors they never had, actively supporting the next generation of aspiring entrepreneurs from their community.
Speaking of networking, have you joined Huddle by Guava? It’s our membership community for Black entrepreneurs. You can join here. In addition, social media platforms like Facebook and LinkedIn offer curated spaces, newsletters, and groups for people to connect amongst like-minded professions and interests. This allows you to build relationships with people who you may not have met otherwise. For local networking events, try looking up your local Chamber of Commerce.
Resilience is woven into the fabric of the Black entrepreneurial experience. One thing that we have shown time and time again throughout the course of history is, when our backs are against the wall and options seem limited, we ALWAYS make a way. For example, while the pandemic did disproportionately impact Black businesses, Black women also became the fastest growing group of Black business owners - owning nearly 2.7 million businesses across the U.S. Black entrepreneurs are generating wealth with their own businesses while creating employment opportunities all over the country.
In spite of the hardships, the successes of first-generation Black entrepreneurs are particularly inspiring. Every milestone reached is a testament to dedication and tenacity. These accomplishments resonate far beyond personal gain, often inspiring their communities and instilling hope for future generations. Their businesses become symbols of possibility, fueling a cycle of empowerment that goes way beyond success in the business world.
Ultimately, first-generation Black entrepreneurs embody the spirit of innovation, determination, and resilience. Our journeys are defined by a willingness to confront the challenges that come with forging a path untraveled. Despite the hardships, we navigate financial uncertainty, stereotypes, and limited resources with grace….because many of us know what it is like to constantly fight for what we have.
As we celebrate the triumphs of first-generation Black entrepreneurs, let us also acknowledge the importance of fostering a supportive ecosystem that amplifies our voices. By dismantling systemic barriers and providing equitable access to resources, mentorship, and funding, we can pave the way for a future where our ventures thrive. Our everyday stories remind us that entrepreneurship is not solely about profit, but about creating a legacy that uplifts communities and paves the way for generations to come.
