“As new small business applications continue at a record-setting pace, Black business owners are thriving, but face unique challenges no matter what their business stage,” said SCORE CEO Bridget Weston.
The Downtown Dayton Partnership said Black-owned businesses, many of which are filling first floor retail spaces, are building stronger downtowns.
“We’re seeing significant growth in Black-owned businesses, and I think that’s important because we know that a diverse group of businesses is important to our downtown and to our community,” said Sandy Gudorf, president of the Downtown Dayton Partnership.
One obstacle Black-owned businesses face is capital needed to jumpstart their business. A 2021 small business survey conducted by the 12 Federal Reserve Banks found that even among firms with good credit scores, firms owned by people of color were less likely to have their financing needs met than firms owned by people who were white.
Across owner groups, Black-owned businesses that applied for traditional forms of financing were least likely to receive all of the financing they sought (13%), according to the survey. Hispanic and Asian-owned businesses (20% and 31%, respectively) were also less likely than white-owned firms (40%) to receive all of the financing for which they applied. Even among businesses with good credit scores, Black-owned businesses were half as likely as white-owned firms to receive all of the financing they sought (24% versus 48%).
Gudorf said despite obstacles Black-owned businesses face, the Dayton region has a growing network around businesses to help them, such as through building a business plan, finding space, or finding capital.
“Quite often, it’s the lack of capital that can be a barrier,” Gudorf said.
Local programs include the Downtown Dayton Partnership’s Retail Lab Pitch Contest, as well as the Entrepreneurs’ Center, which is an economic development corporation that helps start-up companies. The Greater West Dayton Incubator is another resource to help local entrepreneurs find space, capital, and education on building businesses.
A spokesperson for the Dayton Area Chamber of Commerce also said the chamber is a proponent of Black-owned businesses and overall minority business inclusivity. The chamber’s Minority Business Partnership and Business Inclusion Program connect businesses to capital, coaching and contracts.
“Downtown, we have seen an incredible amount of investment in recent years. In fact, since we started tracking our investments since 2010, we’ve hit the $3 billion investment mark, and that’s coming from large investors, small investors,” Gudorf said. She said the downtown is also seeing growth in small, locally-owned businesses.
“We’re seeing an increase in women-owned businesses and Black-owned businesses. They want to be a part of this renaissance of our community, and I think it signals, too, that they feel welcomed downtown, and they want to be a part of it, and so I think that’s critically important as well,” Gudorf said.
BLACK HISTORY MONTH
Throughout February, the Dayton Daily News is highlighting the impact of Black trailblazers and leaders on our area, showcasing Black Daytonians’ contributions to the arts, and elevating Black perspectives on solutions to shared challenges. Read all of this coverage at daytondailynews.com/black-history.
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