Black entrepreneurs face persistent systemic barriers to starting, maintaining, and growing businesses. Education, training, and workforce development organizations (including higher education institutions, nonprofit organizations, and local government agencies) can be a source of support. This brief investigates how organizations within this space support Black business owners and help remove structural barriers.

Why This Matters

Enhancing support for Black entrepreneurs is crucial for fostering economic equity and growth. Education, training, and workforce development organizations can help assist aspiring and existing business owners to navigate obstacles and help remove structural barriers.

How We Did It

The report is based on a review of existing literature, analysis of Integrated Postsecondary Education Data System (IPEDS) data; interviews with representatives from 19 education, training, and workforce organizations; and three virtual focus groups with Black entrepreneurs at various stages of their business ownership cycle in the following cities: Fayetteville, NC; Atlanta, GA; and Washington, DC.

What We Found

• Challenges Black entrepreneurs face: Black entrepreneurs often have limited access to funding due to bias and discrimination, insufficient revenue from customers, limited contracts via government procurement, and face volatile economic conditions.
• Supports education, training, and workforce organizations provide: Education, training, and workforce organizations support all aspiring and current entrepreneurs through workshops or noncredit courses on topics such as creating a business plan, managing credit, and managing payroll; for-credit credentialed programs (associate degrees, bachelor’s degrees, graduate degrees, and for-credit certificates) in programs such as Entrepreneurship/Entrepreneurial Studies; coaching and technical assistance; and sometimes actual funding. Some organizations also offer culturally relevant programs that relate to participants such as Black entrepreneurs.
• Barriers education, training, and workforce development organizations face: The organizations we spoke to noted concerns about the political climate and backlash against diversity, equity, and inclusion initiatives; insufficient funding for their programs; and a lack of data to advocate for policy change.
• What more organizations could do: The education, training, and workforce development leaders and Black entrepreneurs we spoke with said they want to see tailored, high-quality programming to support the needs of Black entrepreneurs at various levels, enhanced partnerships and networks, and more funding.
• Recommendations: The brief provides several recommendations for education, training, and workforce development organizations, philanthropy, and public policy, including investing in research and data, providing a broad spectrum of programming, and increasing funding that gets into the hands of entrepreneurs.

Featured Cities

The report includes snapshots of local ecosystems supporting Black entrepreneurship in three cities:

• Fayetteville, NC: Fayetteville has several local organizations that support entrepreneurs, including the Center for Economic Empowerment & Development, which offers workshops on creating business plans, managing credit, handling payroll, and more. The Black business owners we spoke with said they appreciated the supports local organizations offer. A few business owners felt that there could be more expansive training. A challenge that we heard about from several business owners and service providers is the lack of opportunity for Black business owners to grow revenue and receive funding.
• Atlanta, GA: Known for its rich history of Black entrepreneurship, Atlanta boasts a substantial though declining Black population. The city has numerous organizations, including historically Black colleges and universities (HBCUs), that support Black entrepreneurs through various resources and programs. Several organizations shared that they could receive more philanthropic funding to support their programming efforts, and this is especially the case for HBCUs. Some Black business owners we spoke to said there are a lot of opportunities to find capital but wanted to see funding opportunities that matched their specific industries and levels.
• Washington, DC: As the seat of the federal government, DC offers multiple opportunities for entrepreneurs—including Black business owners—to bid on contracts. Several organizations offer training and coaching for entrepreneurs. However, the high cost of living and running a business in DC poses significant challenges. Moreover, Black business owners report difficulties in obtaining validation to bid on federal contracts at the local level. The number of organizations providing entrepreneurship programs was described as a challenge. It is sometimes hard for people to navigate to the right program for them, and there is a lack of awareness of available services.