Barriers for Black entrepreneurs persist around funding

OTTAWA –

Sean Whyte opened his first fashion store in 2020. He didn’t know that a global epidemic would force him out of business.

Grey Hearts Denim, Whyte’s Kelowna company, expanded from selling fashion clothes to making denim facial masks.

While it was rewarding to find a way to work during a pandemic, Whyte knew that he needed support to get his business back on track.

He was invigorated when he learned that the federal government would be launching the Black Entrepreneurship program in September 2020.

He stated, “It was the beacon of hope to a lot of of us.”

Federal government officials stated that the program was designed to assist Black business owners in overcoming obstacles they face when navigating financial institutions or entrepreneurship generally.

Through the partnership of Financial Institutions and Business Development Bank of Canada, almost $300 million was made available to loan recipients through the program.

Federal funds were also used to create a network of non-profit organizations led by Black leaders to offer financial planning support to entrepreneurs.

Liberal MP Greg Fergus stated that the program was created in response to the extraordinary challenges Black entrepreneurs faced during the pandemic.

Fergus stated that the program’s purpose is to assist Black Canadians in pursuing entrepreneurship on equal footing with other Canadians.

“We all make mistakes. That’s okay. He said, “I’m just saying, let us have the chance to make mistakes at a similar level (as other people).”

Academics and advocates over the years have highlighted the obstacles Black people face when navigating financial institutions.

The Canadian Black Chamber of Commerce and the BDC conducted a 2021 study that identified the most urgent needs of Black business owners. It included skills for promotion and advertising, mentorship, and capital access.

Whyte stated that even applying for a loan through Black Entrepreneurship Program was difficult. Even though funding was made available two years ago, Whyte is still trying for a loan.

Despite these difficulties, Whyte stated that he has benefited greatly from the support from one of the partner organisations, the Black Business Association of British Columbia.

The association, which is part of the “ecosystem”, of federally funded organizations, has helped Whyte with her loan application process. They also provided financial planning resources.

“It’s been the best thing in the world, and it’s made me feel like I’m here and not there,” explained Whyte. He now runs both an online and brick-and-mortar shop.

Nerissa Allen, co-founder and president of Black Business Association of British Columbia said that the program was created at a time when Blacks were dealing with George Floyd’s “traumatic” murder, as well as the pandemic.

Allen stated that it removes barriers for Black entrepreneurs to do the same thing as everyone else, which is to run their businesses and make a contribution to the Canadian economy in the same way they have done.

Alfred Burgesson from Halifax on the East Coast has also been involved in this program. His relatively new company, Tribe Network has worked with the federal government to offer networking opportunities for entrepreneurs.

Burgesson expressed his desire for provincial governments and other support to Black entrepreneurs. He noted that the Black community is historically marginalized.

He said that Canada has an extraordinary opportunity to become a global leader in innovation and economics right now.

“Part of innovation is making sure people who aren’t able to contribute have that chance.”

This report by The Canadian Press first appeared February 19, 2023.