Common Barriers Facing Black Entrepreneurs

“Opportunity” shouldn’t mean exploitation But for Black women entrepreneurs, it often does Black women get used. Constantly. Yes, Black men also experience this but more often than not, they’re eventually compensated through exposure, paid work, or future opportunities. For Black women, our involvement is too often transactional in only one direction. We are used to: • Make others look good • Protect organizations from accusations of racism • Paint a picture of inclusivity • Distract from the lack of real diversity But rarely are we given real opportunities to grow, benefit, or get paid. These “opportunities” are often framed as chances to “raise our profile” or “share our knowledge.” But in reality, they often mean: • Giving away labor for free • Being strategically placed for optics • Having our presence monetised by others • Being sidelined in the very spaces we helped build We are squeezed out of agendas, told what to say (and what not to), and judged in real-time by people who feel entitled to tell us what we did “wrong.” Often by men. Often under the guise of mentorship, allyship, or “constructive feedback.” It’s exhausting. And it’s rooted in a deeper truth: Black women experience the compounded weight of both racism and misogyny. We suffer twice and are expected to be grateful for it. As an entrepreneur working to equip managers to understand and support neurodivergent talent, I rarely see Black women in the room as paid service providers. Our voices are welcomed when they support an agenda. But not when they ask for equal exchange. It’s not enough to include us visually. It’s time to value us - financially, professionally, and intentionally. #neurodivergenceatwork #autismatwork #adhdatwork

You built a successful business in your neighborhood. Hired locally. Bought locally. Invested locally. Then... The city rezones for "mixed-use development." Your rent triples. You're out. This isn't theory. It's Thursday in America. Real examples: • Detroit's Black Bottom: 350 businesses destroyed for I-375 • Durham's Hayti: 500 businesses displaced for a highway • Atlanta's Old Fourth Ward: Home values up 393% in one decade ($345K to $1.7M) Here's what every Black entrepreneur must understand: Your business plan is incomplete without a political strategy. Because: • Zoning boards decide if you can expand • City councils determine your tax rates • State legislatures control your licensing • Federal policies shape your access to capital You can't out-entrepreneur bad policy. The most successful Black business districts in history weren't destroyed by competition. They were destroyed by legislation, "urban renewal," and strategic neglect. Alabama's highway director, who led the White Citizens Council, personally rerouted I-65 through Black business districts. The 4th Act Blueprint: Look at what worked for these Black mayors: • Maynard Jackson increased Atlanta's minority contracts from <1% to 25% • Harold Washington mobilized 100,000 new voters to protect Chicago businesses • Coleman Young secured Detroit development while requiring integration Today's version: 1. Build your business AND join the chamber of commerce 2. Grow revenue AND attend city council meetings 3. Hire employees AND register them to vote 4. Generate profit AND fund political campaigns 5. Scale operations AND influence policy In Miami's Liberty City, Black entrepreneurs learned this lesson: They didn't just open restaurants, they got supporters on the licensing board. They didn't just build stores, they backed candidates who opposed gentrification. Your business needs both: • Customers who buy from you • Politicians who protect you Because the best business plan in the world can't survive a highway through your storefront. Build the business. Secure the politics. Protect the future.

Here’s what it’s really like to start a business as a Black woman entrepreneur. ❗️You’ll get told there’s so much funding available for you, and then face difficult hurdles that make it seem like it’s not worth it. ❗️You’ll deal with all the challenges of being in the minority (only 0.1% of VC funding goes towards businesses owned by Black and Brown women) while fighting the assumption that doors will automatically open for you. ❗️You’ll have to grapple with constant change and constantly define (and redefine) what success looks like for you. But, at the end of the day -- if you stick with it -- you’ll find your voice, stay true to your purpose, and find ways to make an impact that you can be proud of. 👏🏾🎉 By sharing my story during Women’s History Month in my monthly Leading Below the Surface newsletter, I’m hoping to start a dialogue around lessons learned from women entrepreneurs, especially women of color. What are some of the most important things you’ve learned starting new businesses? Or, what are some of the lessons that have been shared with you? Let me know in the comments. #women’shistorymonth #blackwomenleaders #blackentrepreneurs #leadingbelowthesurface

Let’s get real: Being seen is not the same as being represented. And for Black women in business? Visibility is already a fight. But meaningful representation? That’s still a distant dream. Here’s what I mean: You can Google “Black women entrepreneur networking group” right now… And the top results won’t be Black-owned. They’ll be targeting us, marketing to us, profiting off us But without us at the table. No Black CEO. No Black head of department. No meaningful presence in leadership. Black hair is a billion-dollar industry. We drive the culture, the trends, the purchases And still have zero control. Even on digital platforms, we’re told to “Follow best practices.” “Be consistent.” “Post more.” But those rules weren’t made with us in mind. They weren’t made for our stories, our barriers, or our brilliance. Here’s the truth: Representation isn’t just about showing up. It’s about owning the room. The algorithms. The boards. The budgets. Until then, visibility without power is just noise. So let’s stop playing small. Let’s call it out, build our own, and support each other loudly. Not because it’s trendy, But because it’s necessary.

Are Black Entrepreneurs Over-Mentored and Under-Funded? After years of consulting, mentoring, coaching, and co-investing in entrepreneurs across industries and stages, let me be controversial: No group of entrepreneurs is as over-mentored and under-funded as Black entrepreneurs—especially in South Africa.📍 Let me explain. Many entrepreneurs don’t know what they don’t know, and need guidance to build scalable businesses. Others already know exactly what they need to do—and mostly just need the capital to execute. What all entrepreneurs need is the right mix of financial and non-financial support. But in my experience, the ecosystem leans heavily toward the non-financial. Even well-intentioned programs—like enterprise and supplier development initiatives—often offer education and mentorship without real capital, even after entrepreneurs successfully complete the program. The reality? Knowledge without capital doesn’t scale a business. And capital without deep mentorship can still work—because plenty of successful businesses started with imperfect pitches, incomplete plans, or no formal guidance at all. What they did have was the funding to try, to fail, and to grow. Here’s where it gets real. Black entrepreneurs often face a different set of challenges. Many don’t come from financially secure backgrounds or have access to networks of support. Add the burden of black tax, and you're asking people to build without tools. So yes, some need mentorship. But many more are ready—they just need the certainty of funding. Some end up hopping from one program to the next or being on multiple programs learning similar things, but dololo capital. Unfortunately, the system keeps asking for proof that they’re "ready"—courses completed, plans submitted, advice taken—without offering the resources they really need to make a move. And too often, the ones providing that mentorship operate from comfortable corporate positions, offering cookie-cutter advice to founders with firsthand experience in their industries. I have worked with brilliant founders who just needed a real financial shot—and could have created value, jobs, and impact almost immediately. It’s time we stop treating mentorship as a substitute for funding. We need more Black angel investors, more Black-led VC firms, and more capital flowing into the hands of entrepreneurs who know what they are doing—and just need someone to believe in them with a cheque, not just a chat, or solutions like Skinny Sbu the "angry black man" in this old video says. I wonder what happened to Sbu and his sock business? Is it still there? Did it scale? Did he get the money? I know this may come across as biting the hand that feeds me—I work on entrepreneurship development programs —but the truth must be told. Real impact may need a better assessment tool, with "cash kontant". So, are black entrepreneurs over-mentored and under-funded? #Entrepreneurship #Funding #Mentorship #BlackEntrepreneurs #Startup

I was watching a piece of content recently, a podcast interview featuring a Black woman entrepreneur and content creator who had gone through many challenges including financial strains. She was on the platform to discuss her journey but also it was a win for that platform because the engagement around that particular episode was very high. It made me wonder though: Why are people so quick to celebrate the presence of Black women in spaces that make organisations look progressive and forward thinking, yet so slow to invest in those same women when it comes to financial stability and the ability to build lasting wealth and legacy. When Black History Month arrives across the UK, there is no shortage of invitations for Black women to speak on panels, to perform in cultural showcases, to write reflective pieces and to host events that allow companies and institutions to declare themselves inclusive and diverse. These same organisations will proudly showcase their commitment to representation. Yet, when the month ends and the bright lights fade, the barriers to financial equity remain firmly in place. The real beneficiaries are the institutions that extract cultural capital without redistributing any tangible financial capital that would allow Black women to thrive.

Twelve years ago, my published research, 'The Growth Performance of Top African American Businesses,' shed light on the unique challenges Black-owned firms encounter. Recently, a friend shared the closure of his health equity business. He detailed the struggles faced, from sudden NIH funding cuts to anti-DEI sentiments causing ripple effects. He expressed, "These shifts didn't just slow us down—they undercut the very foundation of our mission and pipeline." His story echoes what my co-author and I uncovered in our paper - the impact of complex industry environments on Black-owned businesses. The current health equity funding cuts and anti-DEI movements are examples of how such challenges disproportionately affect these businesses. This stark reality emphasizes a crucial point: no one is coming to save us. It's vital to actively support and advocate for Black entrepreneurs, acknowledging the systemic obstacles they confront. #BlackBusinesses #Entrepreneurship #HealthEquity #SupportBlackOwned #BuildBlackWealth Read more about our research: https://lnkd.in/eVTGuqf8

I didn’t see this coming. VC money changed everything. Then it changed me. And less than 0.5% of it goes to Black founders. I was part of that 0.5%. For a moment, I thought I’d made it. In 2022, investors found me. They said they wanted to back a social impact communications firm. I believed them. For two years, we built something real. We hired, we grew, we made a difference. Then, in 2025, it all flipped. The CFO was fired. Not in a meeting. Not even on a call. Just a WhatsApp message. When I pushed back, they wanted control over the brand I’d built from scratch. I walked away. I started over. Same mission. This time, full ownership. Here’s what I learned at DC Startup & Tech Week (Formerly DC Startup Week) from Adeola Ajani, MBA, Chelsea Olsen, Christina L. Glancy, and Naza Shelley. These women have found ways to fund their dreams. VC is just one path. It’s not the only path. Here’s what every Black founder needs to know: → VC money always comes with strings. Read every line. Know what you’re giving up before you sign. → Build for ownership, not just growth. Your mission is bigger than their timeline. → Revenue is funding. Clients who pay you give you more freedom than investors who own you. → Community is power. Find other founders who have walked this path. Learn from them. Share what you know. The system is not broken. Less than 0.5% is not an accident. It’s a choice VCs make every day. But you don’t have to wait for them to change. You can build differently. You can own your story. Here’s how to start: • Focus on customers who value your work and pay for it. • Build a brand that stands on its own, not on someone else’s money. • Connect with other Black founders. Share resources, share lessons, share wins. • Protect your mission. Don’t let anyone buy it out from under you. The old path is crowded and closed. The new path is yours to make. You don’t need permission. You need ownership. That’s how you win. That’s how we all win. 𝘋𝘢𝘵𝘢 𝘪𝘴 𝘧𝘳𝘰𝘮 𝘊𝘳𝘶𝘯𝘤𝘩𝘣𝘢𝘴𝘦

🌟 As a Black founder, the journey to Product-Market Fit (PMF) is more than just aligning a product with market needs, it's a test of patience and perseverance. I recently found Lenny Rachitsky's newsletter which sheds light on the PMF process as a gradual, iterative journey. When you're seeking VC funding one of the things I've heard is the amount of revenue i need to have, so not just about finding that sweet spot in the market; it's about doing so while navigating a landscape with systemic biases and limited access to resources. The stories of Tope Awotona of Calendly and the founders of Esusu, who faced more than 325 VC rejections, resonate deeply and exemplify the grit and resilience needed in this journey. 📈 The Timeline Challenge: Racing Against the Clock ⏳ Despite what you hear, the typical PMF timeline – about 2 years from idea to initial PMF and another 9-18 months to refine it – is daunting. Black founders, we often face the added pressure of proving our business models quickly to skeptical investors. This race against the clock is intensified with the fact that we're often working with less capital and higher scrutiny. The journey of Tope, who eventually stopped seeking VC funding, is a testament to the unique challenges we face in balancing PMF timelines with investor expectations. 🔍 Intense Customer Focus: Our Secret Weapon 👥 One thing we've learned while building Keepingly® is the power of customer obsession. Successful companies, as highlighted in the newsletter, thrive on customer feedback and rapid iteration. This allows us to build strong relationships and loyalty, often compensating for the lack of extensive funding and resources. 📊 Scaling Wisely: The Art of Sustainable Growth 🌱 After achieving initial PMF, the challenge is to scale wisely. This often means being strategic and resourceful, finding ways to expand your reach without overextending our limited resources. The risk of premature scaling is real, and stories like Esusu's, which faced numerous rejections before finding their fit, reminds of the importance of sustainable growth. 🚧 Systemic Barriers: More Than Just Business Challenges The systemic biases in the VC industry add an extra layer of complexity. We're not just fighting to align our products with the market; we're also battling to break stereotypes and overcome prejudices. This reality often means that our journey to PMF is as much about changing perceptions as it is about developing our products. 🌐 The Continuous Evolution: Never Really 'Done' 🔄 In the world of PMF, we're never really 'done.' Even after achieving significant milestones, we continue to adapt and evolve our product. 🚀Resilience in the Face of Adversity - Minority Founders our journey to PMF is interwoven with challenges that go beyond the typical startup struggles. Evan Leaphart Joel Serface Samella Watson Samantha Katz Gillian Marcelle, PhD Emil Ekiyor D Marie, JD, RN Carole Barrow #productmarketfit #blackfounders