It does not matter how much of a higher purpose you ascribe to your goals of going into business for yourself, ultimately you hope and expect to make MONEY. You will quickly learn that it takes money to make money. Whether it’s your money, invested capital, purchased money, or a loan, you cannot generate a dollar until you have put some in.
This represents a real paradox for some groups of entrepreneurs. In the Black community in particular, family wealth is extremely limited. According to the Federal Reserve 2019 Survey [of Consumer Finances], “Black families' median and mean wealth is less than 15 percent that of White families, at $24,100 and $142,500, respectively.”
This means that if you are an aspiring Black business owner, access to capital may be a real barrier to entry. Lack of access to capital also creates a barrier to sustaining, scaling, and pivoting your business whenever necessary.
Getting the money you need is not easy, and making the wrong choices about what money you do get can slow your progress, or in the worst-case scenario, tank your business. At the end of the day there really is good money and bad money. So, what is the difference?