ATLANTA, Ga. (CBS46) – While women and minority entrepreneurs make up a large number of small businesses, they have a harder time raising money to launch those businesses.
According to the American Express 2018 State of Women-Owned Businesses report, women own more than 12 million companies that generate close to $2 trillion in revenue. But men raise five times as much women to launch their businesses.
Atlanta business strategist Monica McCoy of Monica Motivates, said the funding is there, but often times small business owners lack a strategic business plan and support needed to scale their businesses.
“Unfortunately small businesses are not treating their brand like a Fortune 100 company,” said McCoy. “We know that African American female business owners only received .4% of total VC funding last year and women only received $1.9 billion of the total $85 billion in venture capitalist funding from 2018.”
McCoy recently shared strategy with dozens of business owners at the Global Supplier Diversity Curriculum. McCoy launched the quarterly forum to help women and minority business owners close the gap to securing financing. Speakers included Denise Evans, vice president of Women and Diverse B2B Marketing for IBM Corp., and Adrienne Lance Lucas of the consulting firm Lance, Lucas and Associates. McCoy said it’s important for women and minority owners to be able to show potential investors that their product or company is a low risk investment.
“Investors and potential corporate partners need to understand that it is low risk to invest or partner, and a potential high rate of return on the investment,” she said.
The next curriculum event is June 27.