Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Friday, December 16, 2016

This New Fund Was Created To Help Black Entrepreneurs

A small business lending program has been launched to help African American and minority businesses create jobs and build community wealth. With a focus on bringing capital to underserved groups, the National Urban League’s Urban Empowerment Fund, Morgan Stanley, National Development Council, and Cuyahoga County have come together to offer the Capital Access Fund of Greater Cleveland (CAF).

CAF is a three-year program that provides minority business owners access to capital, offering 50 loans totaling $8 million, as well as pre- and post-loan counseling, to ensure the success of those small business borrowers. With a goal of creating or maintaining a minimum of 300 jobs within those three years, CAF already has completed eight loans, totaling $1.4 million and helping to create or maintain 70 local jobs.

“The level of interest we already have confirms what we already knew—there is a gap in the access to capital for minority businesses, and we should not gloss over that,” said Marc H. M.

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Thursday, August 11, 2016

Some black business owners strain to sell to black consumers

When Terina McKinney displays her leather bags and belts at events attended primarily by black women, they are often interested in her designs, and in her experience as an African-American business owner. But she seldom makes sales.

“They all ooh and ahh and ask a ton of questions, but don’t necessarily make purchases,” says McKinney, whose Jypsea Leathergoods products range from $20 to $325. Instead, her customers tend to be white or Asian women. While calls have been increasing for black consumers to support black-owned businesses with their buying power estimated at more than $1.2 trillion a year, social media campaigns with momentum like (hash)buyblack are relatively new. And McKinney’s frustration is shared by some other black business owners who say they can find it hard to sell to black consumers.

The factors can be logistical or practical, such as being located farther away or having higher prices than big chain stories, retail experts and civic leaders say. Scarcity can be a reason: It can be hard to find businesses owned by African-Americans. But other considerations might be emotional, like wanting a trendy design everyone is wearing, or the perception that national brands are better.

“There’s a myth that’s been placed on our communities for many generations: White people’s ice is colder. White businesses are superior to black businesses,” says Ron Busby, president of the U.S. Black Chambers, a national business organization for black-owned companies. “We have to change that mentality. We have to be better, conscientious consumers.”

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