MACON, Ga. — There are many things to think about when starting your own business. Getting a loan to kick off your company for things like advertising, supplies, and even paying employees, but a Mercer Africana Studies professor says many Black businesses have an extra hurdle--- trouble getting a loan.
Katrina Cohens, life and leadership coach, started her life culture and consulting business in 2021 to help others no matter their background, race, or religion.
"I work with individuals one on one, helping them achieve their goals creating action plans and helping them understand that life comes at everybody," says Cohens.
She knows life can come at business owners hard, especially when jump-starting it.
"It's going to be ups and downs in every business, especially when you're getting started," says Cohens.
One hurdle she avoided was that she didn't need a loan, but that's rare. The Harvard Business Review stated in 2020 that Black founders received roughly 1% of venture capitalist funding.
They say one of the reasons: capital investors who are largely white aren't good at recognizing and developing black entrepreneurs.
"When you're talking about Black businesses, there is clear proof that many financial institutions don't want to loan money to them," says Chester Fontenot, Director of Africana Studies at Mercer, added the cold hard numbers from research don't lie.
"On one hand, it becomes race and not wanting to loan money to black businesses, and there have been studies on that," says Fontenot.
Some programs have options specifically to cater to minority businesses. Including the U.S. Small Business Administration, which offers funding options all the way to mentorship programs so you can live out your dreams