More than half of Black women entrepreneurs self-fund their start-up capital, according to the Harvard Business Review, despite the majority having lower incomes and more debt compared to white men and women.
Quad-Cities Black women entrepreneurs face difficulties accessing capital | Business & Economy
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Ross said loans she wanted to apply for had higher income requirements than she could afford.
“The last three years of my businesses, they will consider it a hobby,” Ross said.
When starting her business, Ross bought her start-up capital outright, thinking that it would prevent her taking on debt. However, she failed to build a line of credit, which she needed to access services like insurance. Ross said entering her business with limited financial education put her at a disadvantage when making business decisions, and increased mentorship might have made her aware of other strategies, like micro-loans.
In search of networking events, Ross joined the Quad Cities Chamber, but she said the membership ended up being too expensive to maintain.
The chamber’s discounted start-up membership costs $600, according to Paul Rumler, president and CEO. A basic chamber membership costs $810, with additional charges to attend Peer Roundtables and events, according to information on the chamber membership application. The chamber also offers a nonmember rate for some networking events.
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