The problem of access to the capital
Starting business takes money. But not everyone has equal access to it. For many founders – especially black, Latin entrepreneurs, indigenous and veteran population – it is difficult to find capitalism. The system is not equal, and the numbers prove it.
below 2 % of all investment capital In the United States, it goes to the black founders. Latin founders receive around him 2.1 %. Colorful women? Even less. Although they are more likely to start companies, these groups face large financing barriers. Many “no” are told before they are stored from the field.
Old warriors, too, face challenges. According to the American Statistical Office, almost 6 % Among all companies owned by old warriors. But most of them lack the funding of the early stage needed to grow quickly or use a difference. Many depend on personal savings or credit cards – unimaginable options.
It is not a lack of ideas. It is a lack of access.
Why does the system prefer the few
Most early financing – whether it is investment capital, loans, or even grants – is transferred to people with networks. Warm introductions of interest to more than the floors of the stadium. Investors funded the people who mention them themselves. This means that Ivy League schools, Silicon Valley Zip, and familiar social circles.
One of the entrepreneurs said it was better: “I had numbers, traction and product. But they did not know me, so they did not trust me.”
This creates a course. If you are not already in the room, it is difficult to enter. Without reaching financing, most founders cannot compete.
The cost of the missed capabilities
This gap in financing does not harm the founders. The economy hurts.
McKinsey’s report estimated that the closure of the racist wealth gap could add 1 trillion dollars to 1.5 trillion dollars To the American economy by 2028. This is more jobs, more tax revenues, and more innovation.
The founders of the disadvantaged societies build works that reflect their neighborhoods. They solve real problems. They rent locally. It creates value as it is ignored often.
But they need support to get there.
What does not work
Many programs say they want a variety of institutional support. But many of them summarize.
Some require many documents. Others offer guidance, but no money. Some of the founders ask “to prove” more than they will have to others.
David Rocker worked with many founders who face these obstacles. “They had real revenues and customers,” he said. “But the banks said no because they are not commensurate with the traditional template. When I realized that the regime was not broken – it was built this way.”
The real solutions that move the needle
1. Start with confidence, not credit degrees
Traditional credit checks do not tell the full story. For new companies, cash flow, contracts and customer growth more importantly.
Landers and investors must consider these signals. For example:
- Do they have customers paying?
- Do they meet salary statements on time?
- Do they grow for a month?
Use the scales in actual time instead of old models.
2. Fear the founder, not only the idea
Investors love shiny ideas. But founders who often suffer from services are often boring, but important problems – such as logistics, local health care or infrastructure.
Stop chasing trends. Start supporting people who understand their markets. People who know how to extend the dollar and offer real value.
Give them flexible capital. Not only is the prize or debt prize with high interest. They need seed money, working capital and time.
3. Building the funds of the founder
The founders know what the other founders need. For this reason, we need more capital in the hands of people who built the companies themselves – especially people from an active actress background.
Money like The capital behind the scenesand Harlem the capitalAnd Collab Capital They prove this work. They invest earlier, move faster, and support better.
More institutional capital (from retirement boxes, standing, and banks) should flow to these types of money.
4. Make counseling practical, not performance
The founders do not need mysterious advice. They need answers to questions such as:
- How do I build the maximum schedule?
- How can I rent a fracture financial manager?
- What should be my cost to acquire customers?
Prepare working hours with specialists. The new founders’ association with operators, not only investors. Make it easy to ask “stupid” questions without judgment.
And pay the mentors if necessary. Free advice is not always the best advice.
5. Simplify access to local capital
Not every founder wants VC money. Many want small loans, grants or equipment rental contracts.
Cities and countries can help. They can launch local Microfunds or match local investors with companies.
CDFis financial institutions are a good start, but many of them suffer from lack of financing. More support means more small business growth.
What the founders can do now
This system will not change overnight. But the founders can still act.
- Join the founder networks. Classes like Blck Vcand Latinxvcand The veterans of the residenceOr Hello, is it not Providing tools and society.
- The stadium is widely. Do not stop in your local area. It applies to patriotism and stadium events.
- Follow your victories. Show growth with numbers – rents, retaining, and reviews.
- Request help. Search for a consultant is one step forward. Copy what is doing.
What investors and leaders should do
- Take more cold meetings. Do not rely on INTROS. Make it a goal to meet five new founders per month.
- See your wallet. How diversified – really? Fix the gaps.
- Create an open door. Hosting informal chats. Let the founders learn without a monument.
- Fund out of the direction. See beyond the program. The return of business in the real world with the economies of strong unity.
conclusion
There is a talent everywhere. But the capital is still flowing to the same few places. That needs to be changed.
Make the capital easier to reach it is not charitable. It is a smart strategy. It builds more powerful societies and economy.
like David Rock He puts it, “The best ideas are not always the highest voice. Sometimes they need someone to say yes.”
Let us say yes. Not only in words – but with real support.
