While diversity, equity and inclusion have been in the spotlight in recent years, minority small business owners still face economic and societal barriers to scaling their businesses.
Research shows significant racial gaps in wealth, income and access to financial resources, with Black, Hispanic and Latino families holding 32 and 47 cents in liquid assets for every $1 held by white families. In addition, COVID-19 has had a devastating impact on minority-owned businesses, which were almost twice as likely to close permanently as a result of the pandemic.
“Minority-owned small businesses play a significant role in the health of our economy,” said Mikal Quarles, executive director at Chase. “They are creating jobs and driving innovation in this country, yet still face challenges when it comes to access to capital and a network. That is why we have committed $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.”
The firm’s $30 billion racial equity commitment is one example of how more companies are investing in minority small business growth, and empowering diverse entrepreneurs to soar to new heights. Here are four ways you can take advantage of these offerings and grow your business.
One-on-one coaching
Black, Hispanic and Latino business owners experience unique barriers in addition to the typical challenges of entrepreneurship. Seeking out the expertise of a coach or mentor can help you navigate business challenges and plan for long-term growth opportunities.
A business coach is a professional who helps you and your business grow. This person can:
- Offer perspective and clarity based on your individual circumstances.
- Work with you to build a roadmap to success.
- Help build your skills by capitalizing on your strengths and improving any weaknesses.
- Provide focused resources and insights for minority-owned businesses, depending on their specialty.
A business mentor fills a slightly different, yet equally valuable, role. Mentors can:
- Offer expert advice from their lived experiences in starting and scaling their own companies.
- Share valuable information on how to best move forward from obstacles.
- Open the door to new networking opportunities.
If you don’t already have a mentor in mind, many organizations have free mentorship programs designed specifically for minority entrepreneurs. For example, SCORE for Black Entrepreneurs matches clients to experienced mentors who provide free one-to-one mentoring sessions.
Banking
Understanding your business’s finances is critical to its ongoing success. A company must not only maintain a positive cash flow, but also generate a profit to survive.
When seeking affordable small business loans, minority entrepreneurs often struggle more than non-minority owners to secure the funding they need. Luckily, there are many small business grants and other financial resources to help bridge this gap, including:
- The Minority Business Development Agency
- The National Minority Supplier Development Council
- Operation Hope, a program designed to support aspiring entrepreneurs in low-income neighborhoods through access to small business financing options, business training and financial counseling.
Educational seminars and tools
There’s no shortage of seminars available to minority business owners and their employees. For instance, Chase for Business offers a capsule of helpful tools available for minority-owned businesses to access and help them grow, including the opportunity to connect one-on-one with a business banking professional, an 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 full of financial health guidelines.
This program is an incredible 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 our minority communities achieve entrepreneurial success.
Rashida Winfrey, Chase senior business consultant
Community resources
Community resources can be a great asset for minority-owned businesses:
- State-level resources. Many states and even large cities have local resources for minority-owned business owners. For example, the Commonwealth of Pennsylvania offers such resources as the Small Diverse Business Capital Access Program and the Pennsylvania Business One-Stop Shop.
- Minority-focused resources. Minority business owners can also leverage resources geared toward their specific communities, such as Black Enterprise Magazine and the Latino Business Action Network.
- Chambers of commerce. Every major metro area has a local chamber of commerce. Entrepreneurs can join their local chamber to develop mentorships and partnerships with other business owners in their geographic area. Minority entrepreneurs can also join chambers that are specific to their community, including the National Black Chamber of Commerce, the United States Hispanic Chamber of Commerce and more.
How Chase can help
Chase is committed to promoting the growth of Black, Hispanic and Latino small businesses. The firm plans to provide an additional 15,000 new loans to small businesses in majority Black, Hispanic and Latino communities over the next five years, and spend an additional $750 million with Black and Latino suppliers.
In further support of this endeavor, Chase recently launched a new program in 13 U.S. cities to help entrepreneurs access one-on-one coaching, mentorship and technical assistance. It is available to all small business owners, Chase customers and non-customers alike.
Here's how it works:
- Small business owners are matched with a trained Chase senior business consultant.
- The consultant provides advisory services including business development coaching, financial planning and more on an ongoing basis.
“This program is an incredible 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 our minority communities achieve entrepreneurial success,” said Rashida Winfrey, an Atlanta-based Chase senior business consultant.
Winfrey has helped local entrepreneurs, like DJ Mars of Made by Mars, a DJ-turned-owner of a bicycle business, build inventory through business credit and plan for long-term growth such as opening a permanent storefront location.
Minority entrepreneurs are often confronted with obstacles to scaling their businesses, from limited access to value-priced capital to a lack of customer, peer and professional networks. 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: The views expressed in this article may differ from those of other employees and departments of JPMorgan Chase & Co. Views and strategies described may not be appropriate for everyone and are not intended as specific advice/recommendation for any individual. Information has been obtained from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not warrant its completeness or accuracy. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results.
JPMorgan Chase Bank, N.A. Member FDIC. Equal Opportunity Lender, ©2023 JPMorgan Chase & Co.
