25 The Christian Reader October 2008
Some Things You Should Know About Small Business Funding
By : Reverend Dr . Robert M . Spooney Executive Director of the African American Chamber of Commerce of Central Florida
America ’ s small businesses are the backbone of our economy , helping to keep the country competitive through innovation and new ideas . One of our nation ’ s greatest assets is our diversity . Investing in minority businesses , therefore , helps to increase the value of that asset and to promote economic growth and job creation . According to the National Black Chamber of Commerce , there are 1 million blackowned businesses in the United States . Chances are that many of those enterprises have benefited from the wealth of resources that are dedicated to helping African-American-owned companies flourish . Equally likely is the fact that some black business owners haven ’ t taken full advantage of the help that ’ s available . If you fall into the latter category , you ’ re missing out on a number of valuable resources that can help you grow your business .
By tapping into theses resources as an African American business owner you can expand your network of customers , suppliers and other business contacts . You can gain access to low-cost loans that are earmarked for minority-owned businesses and you can inspire and encourage the next generation of African-American entrepreneurs .
GETTING FUNDED
Studies indicate that the vast majority of African American businesses begin with less than $ 25,000.00 start up capital and as a result a significant proportion fails during the first year of existence . There are a number of businesses and government agencies that lend money to companies that are past the start-up stage and owned by African- Americans and other minorities . Some lenders will also help you become certified as a minority business . This can be a prerequisite to getting financial assistance from most of these organizations .
If you are looking for funding , I suggest that you conduct a search for Federal Government grants at Grants . gov . In addition , the Minority Business Development Agency provides links to information about grants that are available from state governments . Wells Fargo ’ s African American Business Services program and Bank of America ’ s Minority and Women Prequalification Program have been given excellent reviews for their track record in helping minority-owned businesses obtain loans for working capital , equipment and other uses . By joining the National Minority Business Council you could qualify for a short-term loan for working capital . Another route to consider is venture capital funding . Venture capitalists tend to have high expectations for a healthy return on their investments in growing companies , but they provide hands-on help in nurturing your product or service . The Minority Business Roundtable Venture Capital Fund specializes in funding early-stage minority businesses .
STRATEGIC PLANNING
Does your company have a business plan ? I have found that most African American small business owners have not taken the time to do any Dr . Robert M . Spooney strategic planning . Now if you fall in that category I suggest that you contact the African American Chamber of Commerce of Central Florida ’ s Virtual Office Assistant Service . This service provides a qualified assistant to help you with administrative duties such as typing and sending out direct mail information , updating your corporate minutes , helping you complete the forms for MBE certification and developing business plans . For more information call 407-420-4870 .
If you have a business plan , how strategic is it .? Is this the right time to hire new employees ? Get advice from the experts on these and other business issues by contacting S . C . O . R . E . or the Minority Business Development Agency . The MBDA can provide a truckload of services and information to help you launch and manage your enterprise . Get in-person assistance from business specialists at one of MBDA ’ s regional resource centers . You can also conduct a search on African American Business Link to locate professionals who can help you with tasks ranging from setting up a computer network to designing a corporate brochure . Another tool you can use to help you find out how other African-American executives are growing their companies is Black Enterprise Magazine . You can also get tips on how to enhance your personal wealth by getting involved in Black Enterprise magazine ’ s Black Wealth Initiative .
African AmericanChamber of Commerce Central Florida Robert Spooney Orlando , Florida Christian Reader October 2008
25 The Christian Reader October 2008