Starting a business can be challenging for anyone, but for Black, Indigenous, and People of Color (BIPOC) entrepreneurs, the road is often paved with unique hurdles. From systemic barriers to limited access to traditional funding, turning your entrepreneurial dreams into reality may feel overwhelming. But it’s not impossible. With determination, creativity, and the right strategies, you can build a thriving business. Here’s how.
Start Small, But Dream Big
You don’t need a six-figure loan or a fancy office to start your business. Many successful BIPOC entrepreneurs began with small steps, using what they had to test their ideas and grow. Starting small allows you to experiment without taking on massive financial risks.
For instance, if you’re passionate about food, consider starting a pop-up or catering business from your home kitchen before investing in a restaurant space. If you’re an artist or designer, platforms like Etsy or Shopify let you sell your products directly to customers without needing a physical storefront.
One entrepreneur who exemplifies this is Jasmine, a Latina mother of three who dreamed of owning her own clothing line. Without access to traditional loans, she started by sewing and selling custom pieces on social media. Through word of mouth and consistent effort, Jasmine’s side hustle grew into a full-time business. Her story reminds us that small beginnings can lead to big opportunities.
Don’t underestimate the power of community either. Lean on friends, family, and local networks to spread the word about your business. Often, your first customers will come from the people who already believe in you.
Leverage Free Resources and Alternative Funding
Traditional bank loans and venture capital can feel out of reach for many BIPOC entrepreneurs. That’s why it’s essential to explore alternative funding sources and make the most of free resources.
Nonprofits and community organizations, like the Small Business Administration (SBA) or SCORE, offer free workshops, mentorship programs, and even grants for minority entrepreneurs. These can provide valuable guidance as you navigate the complexities of starting and scaling your business.
Crowdfunding platforms like Kickstarter and GoFundMe have also become game-changers. They not only allow you to raise funds but also help validate your business idea. If people are willing to support your campaign, it’s a good sign that there’s demand for your product or service.
Tyrone, a Black tech entrepreneur from Atlanta, used crowdfunding to launch his mobile app, which connects small businesses with local freelancers. Without the credit score or collateral to secure a bank loan, Tyrone turned to his community for help. His campaign raised $20,000 and attracted media attention, leading to additional opportunities he never imagined.
If you’re tech-savvy, consider applying to incubator programs like Y Combinator or local accelerators focused on underrepresented founders. These programs often provide funding, mentorship, and networking opportunities.
Build a Network That Invests in You
It’s often said that your network is your net worth, and for BIPOC entrepreneurs, this couldn’t be more true. A strong support system of mentors, peers, and allies can open doors you never thought possible.
Start by attending local business meetups or joining groups that support minority entrepreneurs, like the National Minority Supplier Development Council (NMSDC) or the Hispanic Chamber of Commerce. These organizations can connect you with like-minded individuals and potential collaborators.
Don’t overlook the importance of mentorship. Find someone who’s walked the path you’re starting and learn from their experiences. A good mentor can help you avoid common pitfalls, navigate challenges, and even introduce you to their network.
Social media is another powerful tool for networking. Platforms like LinkedIn, Twitter, and Instagram can connect you with entrepreneurs in your field, potential customers, and industry leaders. Share your journey, ask questions, and celebrate your milestones online—it’s a way to attract people who want to support your vision.
Take advice from Reina, an Indigenous entrepreneur who runs a handmade jewelry business. She found a mentor through a Facebook group for women of color in business. With her mentor’s guidance, Reina launched a website, refined her pricing, and doubled her sales within a year.
Building a network isn’t just about what others can do for you—it’s also about giving back. Offer support, advice, or encouragement to fellow entrepreneurs, especially those just starting out. Together, we rise.
Final Thoughts
Starting a business as a BIPOC entrepreneur may come with its own set of challenges, but it’s also an opportunity to create something powerful and meaningful. Remember, you don’t need all the answers or resources at once. Begin with what you have, seek out alternative funding and free resources, and invest in relationships that will uplift and guide you.
Every step forward is progress, and your community is waiting to celebrate your success. Your voice, your ideas, and your business matter—and the world needs them now more than ever.