The percentage of Black businesses in Canada is growing. Nevertheless, they still tend to be smaller and less profitable. After all, many do not have big connections like other entrepreneurs or ties to Bay Street. However, that doesn’t mean that Black entrepreneurs cannot grow and thrive year-round.
Below are a few challenges that Black entrepreneurs face in 2025, along with some strategies to help them put their best foot forward.
Streamline Operations
Sometimes, entrepreneurs face a challenging conundrum, whether to go with the flow or choose a different path. Often holding back in fear, many are afraid to decide out of fear of making the wrong choice. They often ask themselves, “What can I do to make progress now?” As a small business owner, that can be particularly challenging, especially if you have limited resources. A survey revealed that in the U.S., 32 per cent of Black entrepreneurs had problems budgeting and managing cash flow, which was also among the top concerns in their day-to-day worries. Another worry they had to contend with was inflation.
To remedy the situation, consider using digital tools like QuickBooks, FreshBooks, and Bench; they provide an all-encompassing solution to help you manage your finances without hiring extra people. They can also help you manage your finances and issue invoices so that your business gets the money it’s owed on time. You can also seek out admin help; again, you can choose to go digital. Part-time virtual assistants are available in many marketplaces, such as Fiverr or Upwork. If that’s out of the scope of your budget, you can use other tools like Calendly, Asana, and Notion to help you schedule and manage projects.
Raising Capital
Many surveys point out that Black business owners have been hit particularly hard by inflation. That’s why raising funds is particularly challenging for many businesses. Many Black business owners have half the average revenue of typical non-Black business owners. That being the case, many Black business owners have a smaller cash buffer to weather unforeseen circumstances, such as inflation, price gouging, and others.
That’s why they need to explore alternative avenues to secure funding. There are many of them in Canada. For starters, they can access various loans and grants from the government through government-approved programs, such as the Black Entrepreneurship Loan Fund and the Black Opportunity Fund. Such programs offer loans up to $250,000, along with non-repayable business loans, all of which they can tap into.
Level up Your Skills
According to Statistics Canada, Black business owners are six years younger than their White counterparts. That’s promising; after all, younger entrepreneurs have more potential than older ones. Nevertheless, that doesn’t come with challenges; the younger they are, the more challenges they will face; they are also more prone to make mistakes because of inexperience.
That doesn’t mean they do not have help; they can level up their skills through a combination of learning, networking, and building robust teams. For starters, they can consider enhancing their digital education by exploring platforms like Skillshare, Coursera, and Udemy, which can help them learn independently. There are also online mentorship tools available for Black business owners. Amazon, for example, has platforms like SCORE, along with Black Business Accelerator and Black Connect. These platforms offer free access to mentoring with the added burden of paying hefty fees; they also have a variety of resources to help you learn and grow.
It is imperative for Black business owners to hone their skills; after all, nothing can replace spontaneous face-to-face interactions that teach valuable lessons and facilitate partnerships. Organizations like the Canadian Black Chamber of Commerce and the Afro-Caribbean Business Network host conferences, workshops, and training sessions that provide fertile ground for learning the skills tailored to the needs of Black entrepreneurs.
Remember, you are not alone in this challenge. Many Black entrepreneurs have faced similar challenges and thrived. With a little coordination and networking, you can collaborate with other entrepreneurs and utilize the strategies above to rise above the fold!
David Messiha | Staff Writer