Networking

The next major problem that minority entrepreneurs face is a lack of business connections and networking opportunities that can be very helpful during the process of starting a business. Having valuable connections can open many doors, like providing funding opportunities, receiving useful advice and help from those who have successfully launched a business, or being able to work together for potentially lucrative partnerships with more experienced and successful companies. In a paper written for the Brookings Institute, a prestigious Washington D.C. think tank, Michael Barr writes that “[b]usiness networks can help any firm to build its customer and supplier base, improve access to debt and equity finance, and provide useful advice and support. Such networks can be especially beneficial for new and smaller firms, which because of their size often have a narrower range of contacts. Moreover, peer networks may be particularly valuable for entrepreneurs facing similar problems, or located in the same communities. Women- and minority-owned businesses often cannot effectively access business networks even though they might benefit the most from them” (Barr 6). This quote shows the importance of having connections in the business world, and so the fact that many minority entrepreneurs don’t have these valuable connections is very detrimental to their chances of being successful. There are many ways that the business community is trying to fix these networking problems. As mentioned above, PowerMoves is doing a great job of connecting up and coming entrepreneurs with established, successful business owners to create just the type of connections that can prove to be so valuable. Another way to fix this problem is just to raise awareness that minority business owners are out there and attempting to find people to help them. The general American population has never heard of some of the best emerging entrepreneurs across the country, and so promoting them and getting more people to learn about the outstanding ideas that these people have could only be a positive thing in the long run.