Community leaders look to increase entrepreneurial diversity

While 13% of the U.S. population is African American, the demographic comprises just 2% of all business owners. Pervasive entrepreneurial disparities among minorities and women extend locally.

Duggan Cooley, CEO of the Pinellas Community Foundation, said Black entrepreneurs own 14% of area businesses yet account for only 1% of generated revenue. He and dozens of stakeholders met at the University of South Florida St. Petersburg campus Jan. 24 to address the issue.

The foundation’s Tampa Bay Entrepreneurship Support Summit began by discussing local hurdles, highlighted in a 2024 regional survey. Attendees then separated into groups to workshop ideas for actionable, potentially fundable strategies that help sustain minority and women-owned businesses.

“JPMorgan Chase and their research tells us that if we could close the revenue gap for diverse home and mid-size businesses, we’d generate another $1.3 trillion in annual revenue,” Cooley said. “That is incredible growth for families and individuals throughout the country.

“To increase prosperity for individuals and families in our region and bring that locally, we’ve got to be able to increase the number – and the sustainability – of our underrepresented entrepreneurs and their businesses.”

JPMorgan Chase has recognized Pinellas County as a key market for generating more generational wealth. The financial conglomerate pledged $250,000 over two years to bolster the local entrepreneurial support system.

Pinellas Community Foundation will use the money to award grants through its Diverse Ventures Fund. The nonprofit is accepting proposals for collaborative projects that help launch and sustain minority and women-owned businesses.

David Ponraj, founder and CEO of market research firm Economic Impact Catalyst, used recently compiled data to highlight how those entrepreneurs could use the help. He said most local small business owners cannot access capital and instead use their savings, credit cards and online lending platforms.

“It is more easy to get capital from online lenders than from traditional banks,” Ponraj said. “They have a very high interest rate. Many are predatory because they’re not regulated.”

The platforms eschew the laborious red tape required to receive traditional loans. Ponraj said speed trumps quality for struggling business owners.

He noted studies have shown minority business owners disproportionately utilize online lenders. “The lack of a banking relationship is a big deal,” Ponraj said.

He said access to capital is “always top of mind” for entrepreneurs. Additional related hurdles include customer and talent acquisition.

Ponraj stressed the difficulty and importance of hiring people who can create websites and navigate e-commerce platforms. He said mental and physical well-being is another challenge for small business owners who often lack medical insurance.

The Economic Impact Catalyst’s study found that 20% of local entrepreneurs sought “micro-loans” under $10,000, and over 50% needed less than $50,000.

However, most traditional institutions will not underwrite less than $200,000. Ponraj said many small business owners “disenfranchise themselves from the capital access process” because they fear disapproval.

He said local entrepreneurs seek networking, mentoring and “classroom-style” educational opportunities. Ponraj also noted that most underrepresented groups launch businesses out of necessity.

“When we provide better support for our business owners … their survival rate triples,” he added. “They achieve profitability, they stay on to help other business owners in the community and actually put money back in the local community.”

After the workshopping session, Karen Chassin, consultant to the Diverse Ventures Fund, said the foundation was fortunate to have a “room full of practitioners” who teach, mentor and help raise capital for local entrepreneurs. She said they realize the need to align their clientele, investors and performance metrics.

The overarching goal is to share resources and multiply efforts to enhance support for underrepresented business owners. Chassin said attendees stressed the importance of creating cross-sector partnerships.

“People were so enthusiastic,” she continued. “We think we’ve got something to really build on for the second year of funding.”

Chassin called the funding modest and said awards will likely not exceed $20,000. However, she noted that is enough to pilot “some really cool new programs and approaches.”

The groups discussed one of four topics: Overcoming silos, enhancing capital access, holistic entrepreneur support and creating sustainable networks. “I am very excited about the energy in the room,” Chassin said.

The foundation will begin offering virtual office hours to discuss proposals Feb. 28. Chassin said the organization would also “take a deeper dive” into national best practices that could bolster the local small business community while “building on the strengths we currently have.”