a new business venture. “I’m not talking about growing, scaling, or expanding. Simply starting,” he says. These include choosing the appropriate legal structure and separating personal banking from business banking. Entrepreneurs they serve will be able to access financial planning services and cohort business training that will support wealth creation. “The pathway to operating a thriving business is not dependent on learning by osmosis but setting founders up with the right planning, market research, marketing, media, management, and flexibility. Through this new and desperately needed venture, Black-owned businesses will have a better chance of success,” say Horton and Cunningham.
“Black people launch thousands of new businesses every year,” says Horton. “Eight out of ten of these fail, though, within the first 18 months, and these statistics are pretty much the same across industries.” Horton points to several factors contributing to the failure of many Black-owned businesses: lack of market research, entering a field with a highly competitive landscape, lack of team chemistry, lack of positive cash flow, inability to modify the business plan in response to key market trends, taking on more business than one can handle, and poor management. Many of these issues can be remedied through investment, coaching, and mentorship. As Horton says, “The lack of witnessing entrepreneurship in action or having access to an entrepreneur to ask questions leaves the solopreneur out on an island without a map to navigate the choppy waters.” Horton wishes he’d received advice and referrals at the beginning of his own entrepreneurial journey. “I wish I’d known to connect with the Chamber of Commerce, the Service Corps of Retired Executives (SCORE), and the Small Business Development Center, and to try crowdfunding.” This supportive ecosystem, a long cherished dream for Horton and Cunningham, will advance equitable lifelong access to one-on-one advisory services covering all phases of the business lifecycle (pre-venture planning, startup, growth, maturity, and transition). The program will also help business owners find debt/equity funding, mentorship, mental health services, and financial wellness education. “We’re going to help folks earn more money and keep more of it in their pockets,” says Horton. The partnership will also provide resources for transportation/housing, education, basic survival needs, legal problems, taxes, and emergencies. Horton explains that many marginalized entrepreneurs don’t know some of the basic nuts and bolts of starting
312
Powered by FlippingBook