Beyond 5 is a Business Survivability Study for New Majority Entrepreneurs produced by 1863 Ventures with funding from Living Cities, Surdna Foundation, Wells Fargo, M&T Bank, Capital One and Georgetown University.
The 1863 Ventures team found that Black and brown businesses survive at least 8.5 years, compared to the median of six years. What would it take to support BIPOC businesses to thrive well beyond the 8.5 year mark, so they can build generational wealth?
Every sector has a role to play in building an ecosystem that supports BIPOC entrepreneurs to sustain and grow their businesses.
- For government leaders and policymakers:
- Redefine CRA guidelines to account for gentrification
- Create small business committee as part of city council
- For ecosystem builders and Business Serving Organizations:
- Increased coordination and collaboration amongst training programs to reduce time used by founders
- Acknowledge the disparities between founders of color and white founders and adjust screening and selection criteria to support diverse cohorts.
- For entrepreneurs and founders:
- Find a community that makes you feel safe and supports your growth.
- Be steadfast in your values and flexible in the journey
We also looked to BIPOC founders for solutions that could result in increased support networks and investment in BIPOC owned businesses. Their recommendations include:
- Increased collaboration within entrepreneurial ecosystems.
- More holistic approaches to investor due diligence.
- Institutions investing more in understanding communities of color.
- More government assistance towards supporting business viability.
- More diversity on boards of investor committees.
- Cultural competence courses in MBA programs.
Download the report for more insight on data-informed recommendations for government leaders, investors and ecosystem builders on how to use their power to increase the growth and longevity of firms owned by people of color.