In the United States, black-owned businesses increased by 34.5% between 2007 and 2012 for a total of 2.6 million companies. Yet they still face greater challenges in raising capital than white-owned businesses.

The largest source of capital for black entrepreneurs, it is usually their own personal savings or loans from friends and family. Indeed, a study of Kauffman Foundation found that black founders rely on personal credit cards to fund new businesses or acquire existing businesses. The study also indicates that 6 in 10 black entrepreneurs did not seek additional financing despite the need because they believed the business would not be approved by a lender.

So where does that leave ambitious black entrepreneurs like you? Well, we have three unique ways to find financing for your business right now.

1. Crowdfunding. No, we’re not talking about creating a simple GoFundMe page. Crowdfunding is the process of asking individuals to contribute to a specific business or cause through the internet, even if it’s only small amounts. A business can also get much-needed capital in exchange for small amounts of equity from investors. And it all adds up – the global crowdfunding market the size was $ 84 billion in 2018 and is expected to grow to $ 114 billion in 2021. Now is the time to claim your piece of the pie. To get started, check out these sites designed specifically for black and female owned businesses.

Bridging the Black Wealth Gap, The 10K project is a 100% black-owned crowdfunding platform that allows micro-investors to sign up for $ 100 and invest in small black-owned businesses. If 10,000 people invest $ 100, it becomes $ 1 million. Then is Rise Fund N’Go, which is the brainchild of two Nigerian sisters. Anita Egbune and Marian Arafiena are the brains of the new platform which has already attracted five live projects. On this platform, companies can be commercial or charitable. Finally, there is a socially responsible crowdfunding platform for early stage founding black women, FBW or Fund Black Women. The founders of this platform believe that when black founders and the purchasing power of black consumers align, the future we want becomes possible.

2. Subsidies. Do you want to know how the government can play a role in funding your ideas and projects? Grants are a solid way to receive public funds, especially for projects that provide public services and stimulate the economy. Every spring and summer, the Minority Business Development Agency organizes various angel investors with the main objective of supporting small businesses through grants to minority companies.

Designed for aspiring entrepreneurs from working-class neighborhoods, Operation Hope combines business training and financial advice as well as access to financing options for small businesses. And finally, the National Minority Supplier Development Council is focused on increasing business opportunities for certified minority-owned businesses. It operates the Business consortium fund, a non-profit business development program, which provides funding programs and business advisory services to its members.

3. Competition. Entering a competition is not only a great way to fund your business, but it can also increase your visibility as a brand and often comes with great benefits. Created to help black women entrepreneurs take their business to the next level, ESSENCE® + Pine-Sol ™ team up to offer a Legacy Award of $ 100,000. This incredible opportunity includes six months of coaching with business strategist and reality star Nicole Walters. She is passionate about teaching entrepreneurs how to increase their income and can help you monetize your life. If you have a registered business (LLC, Inc., etc.) then you are ready to participate! Simply create a short video that tells us about yourself, provide a copy of your business plan, and complete an application. Registration forms can be found on the PineSol hub, so just click here for details and get started now!