Starting a new business can be hard anytime, but starting one right now might sound downright crazy. Nationwide protests, an economy in free-fall, and a world-wide pandemic might not seem like ideal conditions…unless you take a closer look. A recent article in the Wall Street Journal says that “Americans are starting new businesses at the fastest rate in more than a decade” and that “spending is picking up as cities and states lift restrictions on everything from restaurants to retailers”. Markets are changing, leading to a more sustained shift in consumer behavior than in previous downturns.
So while current conditions have devastated some businesses, it has opened up new markets for others. With respect to Black entrepreneurs, there are particular factors that could prove favorable for starting a business now. Growing, wide-spread support for “Black Lives Matter”, new resources for small businesses and new opportunities due to Covid-19 are key factors. So while nothing takes the place of a great product, smart plan, and adequate start-up capital, let’s look more closely at 3 reasons why now might be an opportune time for Black Entrepreneurs to start their business now:
1. Black Lives Matter has opened new doors
Most importantly, BLM is shining a light on justice & equity in policing, but it also appears to be inspiring wider support of the Black community by all sectors of society. You’ve no doubt seen the many whites and others marching in support of BLM. Companies like Microsoft, Airbnb, the NFL now tout their support of BLM.
More importantly, is the renewed sense of mutual cooperation within the Black Community and their support of Black businesses. In my hometown of Columbus, Ohio, an enterprising young black woman launched “Columbus Black Owned Business” in May of 2020, during the height of protests and pandemic. By October, they had amassed over 72,000 followers who are making inquiries, referring friends, and most importantly, spending money with black business.
2. New economic resources for minority and women-owned businesses
The National Bureau of Economic Research has announced in June 2020 that the U.S. economy is officially in a recession, leading to the federal government’s Paycheck Protection Program (PPP) and Economic Security act (CARES). And while experts warn that the vast majority of small businesses may be denied these funds, it doesn’t mean you shouldn’t try. Private businesses and organizations are also stepping in to fill the gap with funds aimed at helping small businesses, as evidenced by a recent CNBC article.
While there’s no guarantee, new money for small businesses is being made available. Someone’s gonna get the money, so why not apply?
3. COVID 19 offers unique business opportunities
As mentioned earlier, current conditions are not to be celebrated. Many have lost their jobs, homes, and unfortunately, their lives. Yet there’s a precedent for companies succeeding during even the most difficult market conditions by adapting and responding to the unique needs of challenging times. GE, Disney, and HP all thrived during the Great Depression. Airbnb, Uber, and Venmo were all founded during the previous Recession. Social distancing sent Zoom stock up 569%, making the nine-year-old company worth more than IBM. School closings are opening up new opportunities for child care and educators to support distance learning. And the 140% increase in the Home improvements consumer market is directly attributable to more people staying home.
New problems require new solutions, and if you can solve those problems your new business might just succeed.
In closing, I’d be remiss if I didn’t also say that many new start-ups won’t pan out and will fail. More than half of new businesses fail within five years and small-business revenue was down 21% as of mid-September versus January levels, according to data and technology company Womply. Yet even in the face of these challenges, there’s still another reason to throw your hat in the ring – we need you. Small businesses are a critical engine of job creation. They historically have accounted for around one-fifth of job creation. Firms with fewer than 500 employees accounted for nearly half of private-sector employment in 2017, according to the Census Bureau.
Understanding the business impact of changing views on race, taking advantage of newly introduced financial resources, and solving the unique problems brought on by Covid-19 are all reasons why now’s the time to consider starting your business now.
I believe in you.*
Organiksol Marketing is an accomplished, collaborative & innovative marketing team recognized for driving sales and engagement. Using our experience with musical instrument manufacturers, record labels, non-profits, artists and entrepreneurs, we “speak” the customer’s language like few can. By focusing on their values, likes & dislikes, we implement strategies, campaigns and content that emotionally connects with customers to get results. Read more on What we do.
Organiksol Marketing – we naturally grow business
*Facts and excerpts from WSJ, Sept 2020 article, “Is It Insane to Start a Business During Coronavirus? Millions of Americans Don’t Think so”
