This Op-Ed was written by Mona-Lisa Prosper, Director of the Black Entrepreneur Startup Program at Futurpreneur

Why is it that Black women are amongst the most qualified, highly educated, and skilled entrepreneurs in the Canadian market, yet 54 percent of them have generated less than $25,000 in annual profit? Also, most of the businesses are rather small in size, and with no employees, having to run the show entirely on their own. The answer is not that simple. These aforementioned statistics are according to Rise Up, a report conducted by the Black Business Professionals Association in partnership with the Women Entrepreneurship Knowledge Hub, whereby the circumstances of more than 700 Black women entrepreneurs were assessed… and their findings are very telling.

While obvious hurdles such as systemic barriers and socio-economic circumstances are slowly being addressed, there is more to be done on the road toward equality in the entrepreneurial landscape. The problem is two-fold: first we need to acknowledge the unique challenges that come with being a Black entrepreneur and a woman entrepreneur in today’s society; second, we need to stop undermining the importance of small businesses and make space for Black women, and all women to take ownership of the unique skills and mastery that they can bring to the market. 

How can we empower them to escape a micro entrepreneurship mindset? More importantly, how can we change the way the broad startup ecosystem views and talks about small retail businesses, especially the ones in the food and beauty industry, which are typically the types of businesses women have been involved in starting? For some reason, it is much harder for these businesses to access funding, and in some cases, to even meet the eligibility criteria for many incubator or accelerator programs. With a vast majority of Black women operating as sole proprietorships in the retail service space, and mostly online, these limitations affect them directly, adding yet another layer to the barriers they face. While I agree that this is a highly competitive sector and that there are many barriers to entry, I find that simply stating these facts is taking the easy way out. I have heard too many times that Black entrepreneurs, and mainly women, tend to always start businesses in “the same industries”, as if any new venture in these industries was always doomed to fail. How can we change that narrative? We can’t only focus on startups experiencing rapid growth, becoming unicorns (valued at more than $1 billion), and filing IPOs. There is tremendous value in smaller businesses and proximity trade, and we need to empower these entrepreneurs as well.

Let us take the Black hair care industry for example, a multi-billion-dollar industry that has been largely dominated by Korean-owned businesses or large corporations for years. It is only normal that many Black entrepreneurs want to reclaim their space and take ownership!  As a Black woman myself, it took me quite a bit of time to understand and appreciate my natural hair texture. Natural hair care is a science and an art that requires time and patience, and represents a big gap in the industry. Every texture is different and requires a specific type of treatment; Does your hair have high porosity or low porosity? Are you a type 4B or 3C, etc.? It can be daunting and complex for somebody starting their natural hair journey. Not only are good quality products a need, but I also see a huge opportunity for personalization. Leveraging technology to deliver a custom approach for each client, educating them and easing the process while developing a whole experience around the products. The possibilities are endless! I am not saying that it is easy to develop the back-end technological infrastructure for that, I am only saying that it is a possibility worth exploring. There should be more players in the ecosystem looking to help these business owners see new possibilities and enhance their revenue model without necessarily looking to scale rapidly. Luckily, I see that things are changing. Organizations like Groupe 3737 are expanding their footprint throughout Canada, and associations like BBPA are providing extensive programming to business owners and entrepreneurs. It is exciting and encouraging to see.

At Futurpreneur, we have been helping young and diverse entrepreneurs aged 18-39 for more than 25 years, offering financing and mentorship to help them launch successful businesses. Aside from a few specific limitations, most industries are eligible for our financing, from small coffee shops and beauty brands to tech companies ready to commercialize. To better operationalize our values, we launched an Indigenous Startup Program, and more recently a Black Entrepreneur Startup Program tailored to address specific barriers faced by marginalized communities. In one year, we have proudly helped over 130 Black entrepreneurs and 49% of them were women. We are excited to see what the future holds and are eager to continue working with other organizations sharing the same values.

Next time you come across a Black woman starting a business in the retail space, encourage her to think about how to have a competitive edge and be able to scale her business model. Encourage her to see broader opportunities and intersections with technology and other thriving industries. It is not about the industries we choose to evolve in, it is about HOW we choose to evolve in them.