Boyce Watkins, the founder of The Black Wealth Bootcamp, mentioned on one of his YouTube videos that if only black women would stop buying expensive weave and black men stop buying Jordan’s we could use that money to Invest in the stock market or start a business…
Blacks are starting businesses at greater rates, but they are also failing at greater rates, according to a recent study by the Ewing Marion Kauffman Foundation.
2 out of every 5 working class black people I know, including myself, have tried to start a business and failed. I have never owned a pair of Jordans and I don’t wear weave… In fact, I am rather frugal, yet I still managed to fail at business… Not because of a lack of business savvy or a lack of ambition, but we failed because of a lack of capital! Statistically, I am not alone.
For example, 1.7 million firms will still be in existence four years after they were started. Of those, only 3,200 will have grown to 100 or more employees.
Of those 3,200, only 1% will be African-American owned.
If the majority of white own businesses fail because of lack of capital and cash flow problems, imagine how that affects black business owners who are 20 times less likely to have capital inherited and more likely to be turned down for an SBA loan compared to any other race in the U.S… I’ll wait!
According to a U.S. Bank study, a whopping 82% of businesses that fail because of cash flow problems.
It’s amazing how people try to capitalize from spreading miseducation. Boyce Watkins believes if we start more black owned businesses we will be in control of our lives and be able to accumulate lasting wealth we can pass on for generations, but how true is that statement?
While black men and women are 50% more likely to attempt a business start-up than their white counterparts, the numbers show many of those new black businesses never get off the ground. And for those that do actually start, they are not growing as quickly or as big as white-owned companies.
Even for white entrepreneurs, when starting a business, the majority of business will fail within 5 years. Starting a business has a HIGH FAILURE rate, so why on God’s green earth does Boyce Watkins use starting a business as the only hope and only solution for black Americans to achieve economic freedom and success?
A bit more than 50 percent of small businesses fail in the first four years.
In fact, of all small businesses started in 2011: 4 percent made it to the second year. 3 percent made it to the third year.
Selling false hope not rooted in reality is how a lot of these motivational speakers and pyramid schemes become so big.
People want to believe there’s equal opportunity on the job and in the entrepreneurial world because it’s easier to believe a lie than it is to accept the harsh truth of reality.
A realistic business plan, not rooted in black fantasies of richness and wishful thinking, can be a reality check to most black entrepreneurs. A business plan constructed in reality will tell you right away when and how your business will fail before you even start!
The problem is wishful thinking. We just hope the business plan is not true and we go on striving and hoping that something comes through for us to turn the tide of our inevitable misfortune due to lack of capital.
We want to believe that we can overcome the hurdle that capital is to the success of our business, but all the hoping, wishing and praying in the world won’t stop the harsh truth from manifesting.
Of course, if you accept reality, you have to do something about it.
It appears wishing and hoping is believed to be more productive than discussing the facts about the dire reality of both starting a business while being black and working as an employee while being black!
Yvette Carnell, Founder of Breaking Brown Black Media… Breaks it down better than I can. Please watch this video if you are tired of being told lies and you are ready to hear the truth, accept and create a plan rooted in reality that can uplift our community and put money in African Americans and poor white working class pockets!
Subscribe to her channel, live shows air every Monday and Wednesdays 8:00pm CST/ 9 pm EST
Dr. Boyce Watkins said that the wealth gap is an illusion despite the data that proves it’s a hard fact! what a socially engineering, miseducating thing to say.
Boyce can acknowledge the wealth gap and still preach his do for self-gospel but for some reason he wants to go against the data when he can be using it as an argument to benefit his Business.
I never hear start up enthusiastics talk about the RISKS, advantages and disadvantages to start a business while black…
Starting a business requires an investment of money, time and resources. How much money it takes to start a business depends on the business but Data doesn’t lie, please consider this before you run off and file your LLC paperwork…
For those 1-in-4 businesses, the most frequent primary impact that a lack of funding had was preventing them from growing their business (especially for women- and minority-owned businesses).
It also sometimes left them unable to finance sales and forced them to lay off employees.
So the next question is, how much money is required to start a business to prevent it from closing down due to lack of capital?
How much startup capital do most small businesses need?
Well, it depends on who you ask: two surveys had very different answers to this question. According to the Wells Fargo Small Business Index, $10,000 is the average amount of startup capital required by a small business owner. But the Kauffman Firm Survey suggests that the figure is more like $80,000.
Wells Fargo is an active agent in lending blacks predatory loans, so I’d take their advice about business capital with a grain of salt… The Kauffman firm’s projection of $80k is much more believable.
“So when you piece together the various data, you can see the story that unfolds, which is a story about a tremendous gap between a minority’s dream of entrepreneurship and the reality of making it happen,” says Wendy Guillies, spokesman for Ewing Marion Kauffman Foundation.
By Janell Hihi Copyright@2017