It’s National Small Business Week! According to the Small Business Association (SBA), small businesses have provided 55% of all jobs and 66% of all net new jobs since the 1970s. While large businesses have eliminated jobs since 1990, small businesses have added 8 million new jobs.
African Americans have launched entrepreneurial endeavors in record numbers. From 2007 to 2012, the number of black-owned businesses increased 34.5%. Black women have been particularly active in starting businesses; outpacing all other demographics in creating startups by six times the national average.
While these are great achievements for black-owned businesses, making a business successful requires a lot of grit, determination, and knowledge.
For National Small Business Week, we present the essential small business guide for black entrepreneurs. It’s a package of our best advice, quick tips, and financial strategies for the small business owner.
First Moves for Launching a Small Business
- In business and life, timing is everything. Here’s how to recognize the signs for when it’s time to launch your business, and what to expect along the way: Are You Ready to Start a Business? Recognize the Signs it’s Time to Launch.
2. Succeeding as an entrepreneur takes focus and resolve. Not only do you need to be passionate about your business, which will ultimately motivate your drive after setbacks, you need to have a market fit. Here are best practices for testing your idea: How to Test Your New Idea (and Still Keep Your Day Job).
3. Build a successful partnership by finding a co-founder who motivates you, and who you motivate in return. Here’s how to find that person: 6 Qualities to Look for in a Strong Co-Founder.
Read even more great advice on how to successfully get a business off the ground here.
Financing
- If you’re in the early stages of funding your business, you can borrow between $35,000-$50,000 from a small, community-based nonprofit organization called a microlender. With about 160 microlenders throughout the country, these lenders work with the SBA. To get started, read this: How Microlending Can Help You Start a Business.
2. These tips can help you get funding in ways that you may not have known even existed: 5 Simple Ways to Raise Capital
3. These are seven grants black women should consider when launching a startup. Learn more about these grants here: 7 Top Grants or Free Money for Black Women Entrepreneurs.
Even more on financing your business is available here.
The Best Ideas for Running a Home-Based Business
- Earlier this year, Etsy announced two new and exciting ways for sellers to make extra cash, which you can read about here: Here’s How Etsy Wants to Help You Make Extra Cash.
2. According to the U.S. Small Business Administration, 52% of U.S. companies operate as home businesses. With that in mind, check out: 5 Home-Based Business Ideas.
3. In 2009, Maxine P. Gill’s business, which was based out of her Laurel, Maryland-home, grossed $131,000. By 2010, it had nearly tripled its revenue to $348,000. Here’s how she did it, and how you can, too: How I Made $100,000 from Home.
Get even more home business ideas here.