The pandemic saw a sharp rise in Black entrepreneurship. Here’s how these owners are getting off the ground
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The pandemic has helped spur a new wave of entrepreneurs, particularly among Black women, which is now the fastest growing segment of business owners, according to a J.P. Morgan report . More broadly, the Kauffman Foundation’s 2020 annual report shows Black entrepreneurs are outpacing Asian- and white-owned companies.
What’s behind this trend?
The flexibility borne of the pandemic is a large factor with close to half of Black entrepreneurs crediting remote work for giving them more time to pursue a side gig, according to a LinkedIn survey of more than 1,000 Black entrepreneurs based in the U.S.
Many are pursuing their own dreams while staying in their jobs with 52% of respondents feeling their company supports them having their own business. Not everyone is rushing to tell their boss about their new project, though. More than one in three entrepreneurs have not told their company about their side gig.
One reason could be fear of being let go when their side business doesn’t yet generate enough revenue to fully sustain them. The LinkedIn survey found that the majority of Black entrepreneurs are staying in their full-time role until they have enough funding to pursue their small business full time.
A lack of funding continues to be a large barrier for this cohort of entrepreneurs, which my colleague Caroline Fairchild dives into. Read her reporting here .
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Did you start your business while maintaining a full-time job? How can companies better support those looking to start their own company??
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Investor @ Express Systems & Parts | Medical Equipment
2 年Like I mention before we are moving into a new way of doing business, top talent should and will demand a piece of the pie. It’s great to see more people who value their time and use it to increase their core values. I rather partner with an expert who will bring the values needed to flourish my business and his collectively vs hire an in house person that is just looking to give me 40 hours a week. It’s a very exciting time we’re in because we are giving the opportunity to enable self growth and focus more on the values we are passionate about. When passion is the motive the results are always more efficient.
I help business owners, artists and consumers with custom designing quality clothing products for business or leisure | Provide a wide selection of products | Shirts, Hats, Hoodies, Jackets, Leggings, Posters and more.
2 年When I left my job in 09/2021 I said a year before leaving with this pandemic I have a passion to continue the journey of keeping my son legacy alive. I started paying off bills with working overtime in my full-time job and setting a goal to leave in 2021 because I was losing my hair and losing sleep from the stress of my job and this pandemic?? Needless to say I was not being paid my worth from this job for all I was giving?? I said it’s time to go because my life was worth more and that social security early 62 retirement and didn’t care about the 30% penalties and start my own online apparel business 05/2021?? What did I have to lose? Not my life it wasn’t worth it???? I said I rather struggle and live and not die because of someone else benefiting from my worth??
“Your Conduit to Understanding” Professional Interpreting & Translation| Host ??”Tuned In” Vlog series| Podcast??| Blogger ??
2 年Thanks for sharing this data Jordyn. I started my small business while working a full-time corporate job back in 2017. I had the rare blessing of being able to reduce my hours with my corporate job during the transition of making my side gig my main gig. I’ll be celebrating 5 years in business this summer and agree that the flexibility of remote work during the pandemic has proven to be a growth multiplier that’s helped me scale my business: InterSys, LLC that serves the underserved monolingual, and/or limited english proficient (LEP) community. In addition to building a fast growing #MultiLingual #MultiCultural #MinorityOwnedBusiness #Community, I now have the privilege and pleasure of mentoring others directly or through partnerships such as The J3 Project that supports and promotes #BlackOwnedBusiness #WomanOwnedBusiness #HispanicBusiness
Joint Terminal Attack Control Program Manager
2 年There are 2.6 million black-owned businesses in America, according to the Small Business Association. The overwhelming majority, nearly 96%, are nonemployee businesses run by sole proprietors. Blacks own just 2.2% of the 6 million businesses that employ workers, according to USA Facts. Being an American, I support American businesses that actually EMPLOY Americans. If you're like me, do your research before you spend, call for service, or sign a contract.
Green Printing for Event Planners & Forward-Thinking Brands | President @ Eco Friendly Printer
2 年I started my Environmental Printing business the same way. I stayed with my paper firm until my sales in printing were high enough to leave my full time job. But, my parent company allowed me to keep selling paper if I let them drop my benefits. I did that, and was able to make commissions on my accounts. It really helped my cash flow. Try doing that if you can. This pertains to sales people. Greg Barber ecofriendlyprinter.com