Starting a business as a Black entrepreneur is no easy process. How do we know? Well, NUBA was created by a group of Black entrepreneurs who all started our own businesses at some point. One of the most crucial aspects of starting a business, is funding. Sure, we can work full time and attempt to budget so that we can gradually build a savings fund, but that isn't always an option (and to be clear, this method can literally take a lifetime). The reality of starting a business, is that the less access you have to funding, the longer it takes to develop your business to make it profitable. Access to working capital can provide you with the means to hire employees, purchase materials, develop your product or service, and market your brand.
So here's a few stats:
Fewer African-American small businesses are approved for financing, often at lower amounts of money with higher interest rates, according to a report in The Washington Post. Guidant reports that “wealth gap also contributes to financing challenges…making it harder to [get] financing. Without the funds to invest in as many resources as other businesses, such as hiring talent or marketing and advertising, competing for contracts or attracting clients becomes exponentially more difficult.”
8 Insights on the State of Black Entrepreneurship, from American Express reports 47% of African-American small business owners run their businesses by themselves, compared to the 33% of average small business owners. And African-American businesses have fewer employees: 38% have 2-5 employees and only 7% have 6-10 employees. This compares with the average small business owner, with 41% employing 2-5 workers and 12% employing six to 10 workers.
Every quarter we calculate all contributions and reward registered Black-owned businesses based on a submission process. Each business can only be rewarded once per year, so that each round there are new businesses to fund. Though NUBA has various funding opportunities throughout the year, the Funding is Fundamental fund runs all year nonstop.
Funds are distributed based on total amount collected and divided between the selected businesses. The more money the fund receives, the more businesses we can assist!
Funding is Fundamental.