Small Minority-Owned Businesses in Richmond Need Better Pathways to Finance, New Report Says | Economic news
The population of the greater Richmond area is 29% Black and 7% Latino, but when it comes to small business ownership, only 5% is black and 2% is Latino, according to the report. the study conducted between November and February.
The study found that black and Latino-owned businesses in the region employ fewer people and generate less revenue than white-owned businesses.
Access capital is needed to create a successful and growing business, said Brian Robertson, CEO of Marion Marketing Global, a black-owned marketing and public relations firm based in Hanover County.
“When my clients have access to more capital, then they can spend more,” said Robertson. “Without that capital, they have to spend their personal money on infrastructure, on hiring, on growing. I’ve seen a lot of big companies struggle between the first and third year of growth, and their revenues can increase, [but] they can’t keep up because of the lack of access to capital. ”
Robertson, who hopes to gain access to more capital so he can add a fourth member to his team, understands that it is difficult for black entrepreneurs to obtain the necessary financing.
The co-owners of Fitness DAWGS, a growing black and female-owned business focused on educating children about healthy lifestyles using books, videos and other learning tools interactive, have invested their own money in their business. But now they are looking for more funding, especially from sponsors, to take their business to the next level.