Author: Bob Press (TAP Financial Partners)

What is a disadvantaged business?

Recent research shows us that the numbers of women and minority-owned small businesses are skyrocketing. By the end of 2020, there were 12.3 million women-owned businesses in the United States, generating $1.8 trillion annually. Of those businesses, 64% are owned by black women, part of the more than 18% percent of all small businesses in the U.S. that are minority-owned.

Unfortunately, many of these companies, or disadvantaged businesses, struggle to get funding. Only one-quarter of women seek financing for their businesses and those that do usually get more rejections and less money than men.

Small businesses are the backbone of our economy, with female and minority-owned companies having a significant impact. Here are some resources that may be worth exploring by entrepreneurs looking to grow their businesses:

• The S. Small Business Administration (SBA) 8(a) Business Development Program is designed specifically for socially or economically disadvantaged business owners, including women and minority entrepreneurs. To qualify, you need to be certified as an 8(a) business by the SBA. Once accepted, you can compete for contracts and get valuable mentoring and training from business leaders.
• As the only federal agency tasked with promoting minority businesses and helping them grow, the Minority Business Development Agency (MBDA) offers resources to help minority and women entrepreneurs access capital, including grants and loans.
• The National Association of Women Business Owners (NAWBO) is a nonprofit organization that offers members access to educational and networking opportunities. Joining NAWBO can help you connect with other women business owners and investors around the world.
• Based in Atlanta, Georgia, Vertical 404 is a venture capital firm that invests in early-stage businesses owned by women, Black, and Latinx founders. They are specifically interested in funding businesses advancing the future of work in the health, media, and finance sectors.
• The SBA Office of Women’s Business Ownership offers multiple programs that provide business counseling and access to financial capital and credit for women business owners. Their training centers are set up around the country, and many of them offer training in multiple dialects to ensure they reach underserved populations that may otherwise be overlooked.

As a boutique merchant banking organization, TAP Financial Partners provides coaching and consulting to small and mid-sized corporations. TAP Capital brings together investors, family offices, institutional investors, and venture capitalists to offer various types of capital to clients.

Getting funding for your business as a woman or minority entrepreneur can feel overwhelming. The good news is that it doesn’t have to be. If you’re not sure where to start, TAP Advise can help you figure it out with services that include leadership coaching, portfolio consulting, and capital raising.

To learn more about women owned and minority business advisory services, contact us today.