Funding Black business
Whilst support and community is important, funding is crucial. Banks are more likely to reject loan applications for Black-owned businesses; and with Venture Capitalists giving only 1 per cent of their funding to Black founders, it’s understandable why a recent report by 10×10 & Google for Start-ups found that 88 per cent of Black founders have self-funded their start-up.
London-based, Black-owned VC, Impact X have formed to counter these statistics, funding under-represented entrepreneurs who demonstrate an ability to positively impact lives globally. Pioneer Demi Ariyo’s venture, Lendoe, has been creating access to fair finance by partnering with community lenders; disbursing close to £1 million in loans to predominantly Black, early-stage businesses in the UK since 2018.
Innovative funding models have also emerged from British Nigerian, Jermaine Craig, who founded Kwanda. Modelled on the traditional practice of collective finance in Black communities (Pardnas), this digitally enabled collection pot for supporting Black communities currently has over 2,500 ‘villagers’ pledging funds monthly. With an equal vote, voice and full transparency – due to its open ledger – ‘villagers’ determine how grants are distributed.
These are only a few examples. There are many Black-led organisations taking action to tackle persistent economic inequalities by harnessing the value of their collective lived experience and removing barriers for others like them to succeed. The power of these changemaker stories have the potential to not only shift the way those outside the Black community sees it, but also how the Black community sees itself; catalysing exponential empowerment and growth. Representation matters, so we must elevate these stories in order to achieve sustainable impact, whilst listening, enabling and partnering with Black innovators and networks who know what they need and how it should be delivered.