How To Start A Minority-Owned Business

Starting a new business can be a challenging and intimidating process for anyone, and minority-owned operations have historically been underrepresented.

Minority-Owned Business Statistics

- There are now 8 million minority-owned businesses in the US  - Only 11% of minority-owned businesses have employees - Sales have grown 35%, but profits have dropped by 2% - 59% of minority-owned businesses are in the service sector - About 30% of minority business owners feel discouraged from seeking a loan 

Steps to Starting a Minority-Owned Business

Step One – Decide Your Brand and Write a Plan

Much like any venture, minority business owners will need to start by deciding their niche. First, identify your strengths, skills, expertise, and the product or service you’re going to sell.

Step Two – Find Funding

Almost every new venture will need some capital to get off the ground, and it’s been historically difficult for minority-owned businesses to find funding. Luckily, there are a growing number of lenders that’ll provide small business loans as well as government programs that could help you out.  

Becoming a minority-certified business can open up a range of benefits at local, state, and even federal levels. For example, being a member of the National Minority Supplier Development Council (NMSDC) can connect you to more than 1,400 corporations like Apple, Google, Accenture, Microsoft, and General Motors, helping you land more lucrative contracts.  

Step Three – Become Certified as a Minority-Owned Business

Never underestimate the power of networking. Not only is it a great way to build up a list of potential clients, but you can also use it as an opportunity to find other minority business owners as mentors.

Step Four – Build Your Network

There are many more resources to help minority business owners than you might think, each offering all kinds of different benefits. For example, the Black Business Association, the Hispanic Business Enterprise Program, and the Pan Asian American Chamber of Commerce Education Foundation all offer resources to help you with networking, setting up a new venture, and training programs tailored to your specific needs.  

Step Five – Take Advantage of Additional Programs

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