LinkedIn research describes reality known to Black entrepreneurs

Following a pandemic that affected Black professionals far more than their white counterparts, and the fundamental reassessment of priorities that it surfaced, many new Black-owned businesses have started up in its wake – LinkedIn research explores the challenges.

What’s happening

With African American business owners up 38% compared to February 2020, ahead of the pandemic, the challenges and barriers to starting up as a Black entrepreneur are clearer than ever.

Agencies and brands should take note here, as the industry focuses on making improvements to a system in which representation at junior levels doesn’t translate to management.

Lack of finance

LinkedIn’s survey of 1,000 Black entrepreneurs, published in Fast Company, identifies finance as a critical barrier.

• Thirty-seven percent feel like they need a white board member to secure funding
• Thirty-six percent report difficulty securing any financing
• Thirty-five percent have experienced discrimination when applying
• Sixty-four percent rely on personal savings to start businesses
• Fifty-eight percent believe they would be more successful with a “stronger” network.

Reasons for leaving big corporates

Since 2020, companies have found their diversity and inclusion issues thrust into the mainstream conversation and have, frankly, been found wanting. But there are important steps to retaining talent.

• Transparency: 40% of Black entrepreneurs would stay in their current jobs if they had more transparency over the decisions affecting their career.
• Equitable benefits: 50% would stay if they had more equitable compensation, 32% better benefits like health care or tuition reimbursement.

Sourced from Fast Company/Linkedin