The Importance of Financing Options for Minority Entrepreneurs
As the minor improvements in the approval rates of small business loans have been reported on, one less happy trend has also gained some media scrutiny: the dip in loan volumes approved for african american owned businesses. While this may partly be due to a tightening of credit and collateral requirements on the part of banks issuing small business loans, the fact remains that both female and minority entrepreneurs face greater challenges when it comes to obtaining financing for their businesses.
Female and minority owned small businesses are a vital source of economic renewal, especially considering a growing population of business owners would contribute to the creation of more jobs in the small business sector, which is widely regarded as one of the most powerful engines of the recovering US economy. These business owners should consider searching for guidance from sources such as local business development centers, SCORE programs, and finding the right mentors that can help them achieve and push forward more business development. Local grants may also be an option for them, although obtaining financing from Federal Grants for “for profit” businesses is almost impossible, since most of that funding is earmarked for medical and other types of research and non-profits.
Often, small business owners can serve as their own allies, and creating partnerships for referrals is a tactic that can be mutually beneficial to SME’s whether they are running retail businesses or tech startups. Sharing insight on what works in terms of organization and management techniques