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Starting a business is not easy, and it’s common for Black entrepreneurs to feel alone in their journey when they first get started.
But there is a wide range of resources available to business owners, many of which don’t require a lot of additional capital to acquire.
Joy Butts, senior business consultant at JPMorgan Chase, told Ross Mac on Yahoo Finance’s Financial Freestyle (watch the video above or listen to the video below) that a community of entrepreneurs is one of the most important resources someone looking to start a business can have.
“A lot of Black businesses, and businesses in general, don’t necessarily have the infrastructure in place to help them realize their dreams,” Butts said. “Having someone to walk with you, to ease your pain, and to know that you’re not alone on that journey is so important.”
Butts noted that black businesses, particularly those owned by black women, are one of the “fastest growing sectors of entrepreneurship.”
The 2023 U.S. Census reported that there are 161,031 Black-owned businesses in the United States employing more than 1.4 million people.
Black-owned businesses were growing rapidly even before the pandemic hit: Between 2017 and 2020, the number of Black-owned businesses grew by 13.6%, outpacing the overall business growth rate of 0.53% over the same period, according to the Brookings Institution.
Resources for Black Entrepreneurs
Butts says building a community early on, combined with creative thinking and a little help from artificial intelligence, can help most Black entrepreneurs become self-sufficient.
Of course, there are other key roles such as bankers, accountants and lawyers that should be involved early on in your business.
“But you also need other people to support you on that journey,” Butts said. “You really need other business owners who have been on that journey before.”
However, as these important relationships are developed, make sure you don’t neglect the relationships that have already begun – with these three key players.
For example, bankers should be people who “know the ins and outs of their clients and their businesses” so they can better advocate for them, Bhatt said.
She added that those who are still struggling to find those building blocks can look for complementary programs through financial institutions that have invested in their businesses or within the business community that can provide guidance on resources.
The story continues
While it may seem like investing heavily in parts of your business, such as marketing, is a top priority, these measures don’t necessarily require a large financial investment right away.
“There are a lot of platforms out there that will do it for you automatically once you get it up and running,” Butts continued.
AI can be a fantastic resource in this capacity, allowing you to embark on these areas in a cost-effective manner, even if you have limited funds.
However, it can take time to implement and get it right, and Butts says, “It’s a journey, so be patient.”
Every Monday, Financial Freestyle host Ross Mac sits down with a featured guest to discuss their journey to wealth and what it takes to build a lasting financial footprint. Additional episodes are available to watch on our video hub or on your favorite streaming service.
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