African-American small business owners

(BBR)  It’s been a relatively good few years for African-American small business owners.

According to a subset of data in the 2020 State of Small Business report from Guidant Financial and the Lending Club, African-American small business owners are happy these days.

In fact, 70% of them say they are either “somewhat happy” or “very happy” with their businesses. And 72% of African-American small business owners say their businesses are “currently profitable.”

However, the study also shows African-American business owners are “are less confident than the average small business owner about the state of small business in this political climate, with 53% of African-Americans saying they are either “somewhat confident” or “very confident” compared to 60% of average small business owners saying the same.

Startup motivations

Being “ready to be my own boss” was the primary reason African-American survey respondents started their businesses (34%). This was followed by a “desire to pursue my own passion” (29%), “dissatisfaction with corporate America” (13%), and “the opportunity presented itself” (10%). These stats are a bit of a change since a previous Guidant survey showed 62% started a business to “pursue their passion.”

Diversity of African-American business owners

Overall, African-American small business owners are younger and include more women than the general small business population. The study reports 22% of African-American small business owners are millennials, nearly twice as many as the 12% of millennial small business owners in the general population.

African-American women entrepreneurs

The Guidant report shows, “There are more female African-American small business owners than the general population of business owners. In the American small business universe, 27% of small businesses are women, among African-American owned businesses, 35% are women.

The American Express 2019 State of Women-Owned Businesses

 report has slightly different numbers about African-American/Black women-owned businesses:

• # of businesses: 2,681,200 . That’s 21% of all women-owned businesses, making it the largest segment of women-owned businesses after non-minority women.
• Growth rate: Grown at an annual rate for the past year of 12% compared to an 8% annual growth rate between 2014 and 2019. Represents the highest rate of growth of any group in the number of firms between 2014 and 2019 and between 2018 and 2019.

The concerning stat is about earned average revenue. African-American businesses owned by women in this report earned an average of $24,000 per firm vs. $142,900 among all women-owned businesses. This gap, says the report, is “the greatest of any minority [group].

According to digitalundivided’s Project Diane 2018 report, The State of Black Women Founders ( the report is issued every two years) the number of startups founded by Black women more than doubled from 2016 to 2018—to less than 4%. But that’s small compared to the percentage of Black women in the U.S. (14% of women in the U.S. are Black). Nearly half of all African-American women-led startups were in California and New York.

In fact, according to BlackBusiness.com, New York state has the most (regardless of the gender of the owner) Black-owned businesses—-204,093—which is 10.6% of the businesses in the state, followed by Georgia, Florida, and Texas. However, Washington DC has the highest percentage of Black-owned businesses in the country with 28%.

Challenges for African-American business owners

Lack of capital and cash flow is the biggest challenge for African-American small business owners, according to Guidant. That’s not really a surprise since those are the same problems most small business owners face.

But fewer African-American small businesses are approved for financing, often at lower amounts of money with higher interest rates, according to a report in The Washington Post. Guidant reports that the “wealth gap also contributes to financing challenges…making it harder to [get] financing. Without the funds to invest in as many resources as other businesses, such as hiring talent or marketing and advertising, competing for contracts or attracting clients becomes exponentially more difficult.”

Small business can be a lonely venture

A report, 8 Insights on the State of Black Entrepreneurship, from American Express reports 47% of African-American small business owners run their businesses by themselves, compared to the 33% of average small business owners. And African-American businesses have fewer employees: 38% have 2-5 employees and only 7% have 6-10 employees. This compares with the average small business owner, with 41% employing 2-5 workers and 12% employing six to 10 workers.

Getting funding

More African-American small business owners (44%) use cash to fund their businesses than the average small business owner (37%), according to the Guidant report. Only 15% get help from friends and family, which was the second most popular source of capital for African-American business owners.

Other funding sources for African-American business owners include:

• Lines of credit
• Rollovers for Business Start-ups (ROBS), financing that allows small business owners to tap into eligible retirement accounts to fund their businesses without tax penalties. Guidant says this grew by 21% in popularity among African-American small businesses year over year.
• Unsecured loans
• Peer-to-peer
• Equipment leasing
• SBA loans

And according to Project Diane, the picture for African-American women is equally challenging—since “2009, Black women led startups have raised $289MM in venture/angel funding, with a significant portion of that raised in 2017. This represents .0006% of the $424.7 billion in total tech venture funding raised since 2009.”

Tesla Ordered to Pay More Than $3 Million in Racial Harassment

(BBR) - In a recent ruling, electric vehicle company Tesla has been ordered to pay over $3 million in a racial harassment case. The case, which dates back to 2015, saw a group of Black workers at Tesla's factory in Fremont, California, alleging that they were subjected to a hostile work environment and racial discrimination.

The workers claimed that they were subjected to racial slurs and epithets, and that the company failed to take adequate action to address their complaints. In response, Tesla argued that it had taken appropriate measures to investigate and address the complaints, but the court ultimately sided with the workers.

The ruling is a significant blow to Tesla, which has long prided itself on its progressive and inclusive workplace culture. The company has faced criticism in the past over its treatment of workers, with some employees alleging that they were subject to grueling working conditions and long hours.

The $3 million payout is a relatively small sum for a company of Tesla's size, but it is nonetheless a significant penalty for the company to pay. It also serves as a reminder that even companies with a reputation for progressive values can fall short in their treatment of employees.

In response to the ruling, Tesla has pledged to redouble its efforts to promote diversity and inclusion in the workplace. The company has also indicated that it will take steps to address the specific concerns raised by the workers involved in the case.

The ruling is likely to have broader implications for other companies as well, as it highlights the importance of taking seriously complaints of racial harassment and discrimination in the workplace. With many workers increasingly vocal about their rights and expectations in the workplace, companies will need to take a proactive approach to addressing these issues if they hope to maintain a positive reputation and avoid costly legal battles.

Overall, the ruling against Tesla serves as a reminder that even the most progressive and innovative companies can still fall short in their treatment of employees. It also underscores the need for companies to take proactive measures to address complaints of harassment and discrimination, in order to create a more equitable and inclusive workplace culture.TESLA

Lamar Jackson, the quarterback for the Baltimore Ravens,

(BBR) Lamar Jackson, the quarterback for the Baltimore Ravens, has quickly established himself as one of the most dynamic and exciting players in the National Football League (NFL). Since his arrival in the league, Jackson has been breaking records, setting new standards for excellence, and captivating fans with his electrifying performances.

Here are a few reasons why Lamar Jackson is such a great player:

1. Dual-threat ability

One of the things that makes Lamar Jackson such a special player is his dual-threat ability. Jackson is equally comfortable throwing the ball downfield as he is taking off and running with it. This makes him incredibly difficult to defend against, as he can make plays with his arm or his legs, and defenses have to be prepared for both options. Jackson's ability to extend plays and make something out of nothing has been a key part of his success so far in the league.

2. Record-breaking performances

Lamar Jackson has been breaking records and setting new standards for excellence since his college days at the University of Louisville. In 2019, Jackson became the youngest quarterback in NFL history to win the league's Most Valuable Player (MVP) award, setting multiple records in the process. He set a new NFL single-season record for rushing yards by a quarterback, became the first quarterback to rush for over 1,000 yards in multiple seasons, and set a new Ravens record for touchdown passes in a single season.

3. Leadership and work ethic

Beyond his natural talent and ability, Lamar Jackson is also known for his leadership and work ethic. He is a tireless worker who is always striving to improve his game, and he leads by example on and off the field. His teammates and coaches have praised him for his dedication, focus, and willingness to put in the extra work to achieve his goals.

4. Community involvement

Off the field, Lamar Jackson is also known for his community involvement and his commitment to giving back. He has been involved in a number of charitable efforts, including donating computers to underprivileged students and supporting organizations that help young people in need. Jackson has also used his platform to advocate for social justice and raise awareness of important issues.

In conclusion, Lamar Jackson's greatness as a player goes far beyond his individual statistics or accomplishments. He is a dynamic and exciting player who has set new standards for excellence on the field, but he is also a leader and role model who has made a positive impact both on and off the field. As he continues to grow and develop as a player, there is no doubt that he will continue to captivate and inspire fans, teammates, and coaches alike

Entrepreneurship is in many ways, a mirror to life

Entrepreneurship is in many ways, a mirror to life — you start with a blank page and a head full of ideas. How you fill that page will depend on a lot of inner characteristics — vision, patience, perseverance, empathy, stubbornness. Plus, one external thing— “a dash of luck”.

Often enough, “luck” is the collective term for the things we don’t talk about, the things we shush. The elusive “luck” is in many ways, “uncomfortable” things like privilege, background, family, connections, etc.

For Black entrepreneurs, the above kind of “luck” has been so minimal — or even nonexistent — that they went on to defy it and create their own. We can only admire the courage of the people who beat the odds of life and became not just successful entrepreneurs but role models far beyond their communities.

Today, I’d like to give an ear to their stories — the stories of the Black entrepreneurs next door who made it when all the odds were against them. They “beat the odds”. So can you.

1. Antonio Wells: “Never let someone who lacks vision stop yours”

Today, Antonio Wells is the owner of Chicago-based brand growth and marketing agency NAMYNOT Inc.

Helping businesses from start-ups to Fortune 100 companies grow their brand, Antonio is a serial entrepreneur who started a tech review company back in 2009. Back then, launching on a “shoestring budget”, Antonio was able to grow the company organically into a global leader in the app review industry, and successfully sell it.

“In 2009, I started a popular mobile app review site called AndroidTapp.com. With great content, a mastery of SEO, and good ole fashion journalism. The company never received funding and was able to grow exponentially by reinvesting,” Antonio says. “The greatest challenge I faced was lack of funding [and] lack of knowledge in finding alternative ways of gaining funding. However, I turned this lack into execution by working with what I had and continually reinvesting (oftentimes 100%) until I hit a point of profitability.”

For Antonio, the most important thing in life has been to never give in when others fail to believe in you or your business. Even such a critical aspect as lack of funding for business isn’t enough reason to give up on your goal.

Business tip

Antonio’s business journey shows that strategic financial planning is vital to any startup or growing business. But on top of that, his motto is to never let even well-meaning advisors (of which there’ll be plenty) to interfere with your vision. Whatever the financial hardship, there’s a way to adapt the means to your goals. Some of the best ways to cut back on business costs are reinvesting in the business, studying profit margins, and building a simple financial model for your business.

2. Jamie R.Wright: “It’s not that I’ve always known who I would be, it was just very clear to me who I wouldn’t be.”

Starting or growing a business during a pandemic is an immense challenge in itself. Starting a business as a victim of domestic violence in the middle of a pandemic, while fighting for your safety at a women’s shelter around Houston, TX, is something that takes unprecedented courage.

Jamie Wright is one such amazing woman. Fighting not just for her life, but for the life of women in similar circumstances as she, she became a trauma & self-love advocate, author, motivational speaker and ambassador for women subjected to domestic abuse. Jamie’s story and practical advice has already been shared on BBC News, CBS, Fox 26, 60 Minutes Quibi and more.

“As a survivor of domestic violence, I share my story of triumph in a way that inspires others,” Jamie says “I also provide practical ‘how-to’ tips and tools in an effort to help others radically transform their lives. The greatest business challenge I faced overcoming my self-doubt and disempowering thoughts by realizing that all that I needed was within me. I may have been victimized, but I AM NOT a victim. Adversity is an opportunity to remind/show myself how strong and resilient I am.”

Business tip

A survivor of domestic violence that has accomplished everything through her faith and courage, Jamie’s motto is a paraphrase of Oprah’s quote, “It’s not that I’ve always known who I would be, it was just very clear to me who I wouldn’t be.” Whatever life situation you’re currently in, Jamie reminds you to find a community that will guide and support you, like an online business community for Black entrepreneurs. Seeking help isn’t about a lack of courage. It’s about real, hands-on courage. When we are backed by people who understand our experiences, we can move mountains — even in times of a pandemic and personal trauma.

3. Vid Lamonte’ Buggs Jr.: “To persevere and overcome the odds, have a warrior mindset and live a warrior lifestyle”

People often call Vid Buggs the “modern Renaissance man”, i.e., a man of many talents. He is owner of an entrepreneur, bestselling author, athlete, public speaker — and that’s just a part of his accomplishments.

But throughout his childhood, it seemed the odds were turned against Vid. Born with a medical condition that made doctors believe he wouldn’t be able to walk or run normally, and facing academic challenges in school, he went on to graduate with the highest honors, obtain multiple degrees, engage in sports, and find his life’s purpose in a hidden talent.

“It was 2013–2014 and I just was waived by an NBDL team,” Vid says. “My girlfriend and I were expecting a baby girl. [We were] in Florida without any family to help during one of the most challenging times in my life. However, due to this crossroads, I decided to pursue some goals I had put on the backburner. Those goals were starting a Publishing Company, starting an Enterprise, Publish a book, and Public Speak on a national level. Through basketball training and money I had saved up, I was able to publish my book, “You Ain’t Hungry Until I’m Starving”, with the help of Marci Wise. I also was able to start both of my companies.”

Business tip

As Vid says, “No matter what we want to do or who we want to be in life, we will go through challenges. People will doubt us, and tell us what odds are against us. In order, to persevere, overcome the odds and be successful, a person must have a warrior mindset and live a warrior lifestyle.”  In other words, if you want to change your life, start with changing your mindset and acquiring key business skills like communication, networking, sales negotiation, and digital skills.

4. “Michele Davis: “Take the time to discover what makes you happy and fulfilled in every aspect of your life.”

One day in 2016, Michele took the leap of faith many would’ve considered improbable. At 45 years of age, she became a first-time entrepreneur with no prior experience. Back then, she launched Marketing Gem Solutions, a website design, branding, and SMM company supporting female entrepreneurs.

Through her active learning and perseverance, Michele’s business story soon took off. But only three years later, personal tragedy struck. Michele’s son died, leaving her heartbroken after the greatest challenge a human being can face. Surprisingly, one day she found the courage and fearlessness to rise up and even reinvent her business.

“After I felt emotionally able to return to the world […] I decided to contact clients just to check in on their progress in their business. The more I spoke to the women, the more I realized they needed business mentorship. That’s when I decided to provide [them with] a step-by-step blueprint. My focus with Phenomenal Boss Academy is helping women launch a profitable and sustainable business in 90-days or less.”

Business tip

For many people, starting a business after 40, or even starting a business after 50 with no experience to boot, sounds frightening. But for Michele, it has become more than a plan B, but an unexpected support that helped her come back to life through helping others. This is why she’s an advocate of the spiritual, mindful approach to business concepts. “I always advise people to take the time to discover what makes you happy and fulfilled in every aspect of your life. Evaluate what you need spiritually, emotionally, financially, and so forth to make you feel happy and fulfilled.” When your business is about more than “work”, your success becomes a link between other people. To paraphrase Vernon Jordan, standing on the shoulders of others, you lend your own shoulder to those following you.

5. Jen Ngozi: “Cancel Perfectionism!”

Jen Ngozi grew up in a first-generation African immigrant family who came to the U.S. with nothing but $10 in their pockets. Growing up in a minority community, she had no corporate-American parents, birth privilege, or business role models to emulate.

Set on working hard and giving back, Jen fought for and forged her own path in business and went on to found NetWerk, a global woman in leadership movement and organization helping everyday women worldwide build the community, confidence, and skills needed to become leaders. Jen’s movement has met with worldwide acclaim and partnered up with brands like Teen Vogue and the United Nations Foundation. Her secret? Letting go of perfectionism in favor of lifelong learning.

“It’s important to embrace the entire process of building an organization, including mistakes,” Jen says. “Throughout my business journey, I learned how detrimental perfectionism is to growth. And I’ve decided that we never really make mistakes, we only get better aligned to our original purpose. [You could say that] mistakes made my vision clearer.”

Business tip

Cutting out perfectionism aka the “all or nothing mindset” is what Jen considers the biggest asset in business and life. If perfectionism is your roadblock, don’t stop doing what you’re doing. Keep on doing it while you learn more. Jen says that it’s been mentorship that propelled her business forward drastically. She relies on SCORE, the SBA’s volunteer mentor organization from/to small business owners where anyone can connect to a business mentor for free, or sign up to mentor others. If you’re starting a business, learning practical financial practices, strategies to cut back on business costs, and filling inevitable gaps in your business, sales, or marketing knowledge is a shortcut through mentorship.

Final word

Black History Month isn’t just a celebration of roots, courage, and overcoming. It’s also an important lesson for every single community, minority group, and underprivileged society. A lesson about creating our own “luck” — and fate.

Like African American film director Spike Lee said, “I believe in destiny. But I also believe that you can’t just sit back and let destiny happen.”

Don’t wait for destiny to happen. If that’s what you’ve been dreaming about, become an entrepreneur. Beat all the odds.

Mike Burton, a rapper and entrepreneur from Texas

Mike Burton, a rapper and entrepreneur from Texas also known as Keybeaux, is earning over $82,000 a year writing raps that he sells on Fiver, a popular freelancer site. For nearly seven years, he racked up more than $500,000 from all his commissions.

Mike, who has a degree in communications from the University of Houston, has always loved writing. In 2015, when he saw that writing customized raps can be offered on Fiverr, he decided to do it. However, he felt demotivated when he received his first request asking to make a song about how it's okay to listen to Eminem, which he said sounded like a term paper and not a rap.

A year later, Mike, who was then working at a call center, decided to try doing some freelance work on Fiverr again. He offered to make 30-second verses for $5 each and it gradually became in demand. By December 2016, he left his job to focus more on his commissions, which now usually cost up to $560 each.

More than making money, the 38-year-old rapper said what he loves the most is helping people express themselves through rap. He writes and produces songs for companies, businesses, podcasts, and YouTube channels, as well as personalized love songs and birthday songs. But it shouldn't involve anything about violence and profanity, saying he's not interested in requests like that.

"I'm acting as a conduit for your ideas," Burton told CNBC.

Mike says that he definitely enjoys what he is doing and that he can actually write a verse in just 30 minutes. But it doesn't mean that he doesn't run out of creative juices at times. And when that happens, he says that he just takes a break by making his own original music that he releases on music platforms under his stage name Keybeaux.

"I'll have no energy for anyone else if I don't make my own stuff," he said.

Be sure to follow Mike on Instagram @keybeaux or hire him direct on his Fiverr page.

Legendary Georgetown coach John Thompson has died, reported ESPN. He was 78.

His death was initially reported by Washington, D.C., radio station, The Team 980.

“More than a legend, he was the voice in our ear everyday,” his family said in a statement Monday. “We will miss him but are grounded in the assurance that we carry his faith and determination in us.”

Known as “Big John,” the 6-foot-10 Thompson was the first Black coach to win the NCAA championship. He led the Hoyas to the title in 1984.

He was inducted into the Naismith Memorial Basketball Hall of Fame in 1999.

Under Thompson, the Hoyas made it to three Final Fours in the 1980s. He also led the 1988 U.S. national team to an Olympic bronze medal.

With an ever-present white towel slung over his shoulder, Thompson led Georgetown for 27 seasons. He retired from coaching in 1999.

Recently, Thompson stepped down in May from the Nike Board of Directors, and his autobiography is set to be released in January.

There was no immediate word on a cause of death.

The Associated Press contributed to this story.