Unlocking Black Business Growth in 2021: Overcoming Old Problems Despite 2020 Boom
The booming economy of 2020 did not help Black-owned businesses, as they are still facing the same old problems that have been plaguing them for decades. Eight out of ten Black-owned businesses fail before their second anniversary due to a lack of resources and limited access to capital. This is an issue that has been persistent in the business world since long before 2020 and it does not seem like much progress has been made in terms of improving this statistic.
Inflation also plays a major role when it comes to these failing businesses, making it difficult for owners to keep up with rising costs without any extra financial support from outside sources or investors. Without proper funding, many start-ups simply cannot make ends meet, which leads them down an inevitable path toward failure.
It’s clear that more needs to be done if we want these numbers to improve anytime soon; whether through government initiatives or private investments there must be some kind of effort put forth so that more Black-owned businesses can succeed rather than fail within their first two years on the market. The future success rate depends on how well we address this problem now and develop solutions moving forward so all entrepreneurs can have equal opportunities regardless of race or background.Read more at mlive