Diversity.
It is seemingly on everyone’s lips as companies big and small wrestle with what it takes to achieve a diverse workplace and an inclusive culture.
Oftentimes, the conversation centers on access and representation. How do we achieve greater minority representation in Silicon Valley or the C Suite? While these are incredibly valuable and important conversations to have, the challenges for minority entrepreneurs are slightly more nuanced.
We don’t have a representation problem within entrepreneurship. Minorities are starting businesses at a rapid clip. According to a recent study conducted by American Express, 8 out of 10 businesses started by women between 2007 and 2016 were launched by women of color.
What we have is a growth problem.
On average, white-led firms generate 10 times the revenue of black led firms and 4 times the revenue of Latino firms. Only 2.5% of black female led businesses have employees and so few Latina women receive venture funding that there are no reliable statistics for it. While Asian firms seem to be outperforming everyone - whites included, we know that the Asian designation in the Census comprises 7 different nationalities, with certain groups demonstrating similar outcomes to Blacks and Latinos despite the overall numbers.
In recent years, the minority business growth gap has received the most concentrated attention within the tech-based startup space, with new initiatives coming online almost daily. These efforts bring critical resources in the way of early stage funding, venture capital, mentorship, networking and overall professional development. As a result, many minority entrepreneurs are better positioned for long-term success.
However, the system is not without its problems. Some might question whether this constellation of opportunities and initiatives truly constitutes a system at all.
As a person who has run both a lifestyle business and a startup, I've found that navigating the small business landscape is no easy task. There is the traditional space which is made up of the SBA, small business development centers, certifying bodies, etc. And then there is this new domain of incubators, accelerators, co-working spaces, and pitch competitions. There is no real guidance on where to start or who does what, and no real intel on what opportunities are worth one's time or a waste of time.
Some might say, "That's business. Figure it out. It's not supposed to be easy."
But I say, there's got to be a better way.
Being an entrepreneur is hard enough. And when you are a minority entrepreneur you need to be even more strategic about growing your business because the resources and information you require to grow usually lie beyond the confines of your community or your natural networks.
At Nexus Research Group, the consulting firm I launched back in 2009, we help our clients achieve large scale social impact every day. Earlier this year, I met with my staff and a team of advisers to brainstorm on how we might apply our knowledge and expertise to offer an eco-system-based solution for closing the minority business growth gap.
The result is Founders of Color.
Founders of Color is an online platform connecting minority entrepreneurs with high-growth potential to the information, relationships and opportunities they need to scale quickly, while simultaneously connecting those looking to access minority founders with the data, information and support they need to navigate the minority entrepreneur landscape.
The full site, which launches at the end of May, will do this in 3 ways.
First, the site will house a search engine made up of founders of color across geography, industry and milestone.
Second, the site will function as a clearinghouse for resources and events.
Third, the site will host an online community exclusively for founders of color.
At Founders of Color, we have no desire to recreate the wheel or do what others are doing really well. Rather, we want to amplify what others are doing, coordinate resources and create a space for meaningful collaboration - all while building a community of likeminded business owners who want to achieve exponential, yet sustainable business growth.
There is so much potential that lies within the minority entrepreneur community, and while opportunity abounds, the barriers are real. In the days, weeks and years to come, we’re excited to work with the amazing change agents within this space and beyond it to effectively move the needle and close the minority business growth gap for good.
