In September 2020, the Government of Canada announced the Black Entrepreneurship Program (BEP) designed to support Black entrepreneurs in their recovery from the COVID-19 pandemic and foster sustainable future growth. To ensure the program effectively addressed the unique needs of Black entrepreneurs across Canada, Innovation, Science and Economic Development Canada (ISED) conducted comprehensive consultations. This post summarizes the key insights gathered during these discussions, highlighting priorities and concerns raised by Black entrepreneurs, business organizations, academics, and other stakeholders.
The consultations took place virtually over seven weeks, including 11 sessions with 125 participants from 64 different organizations, complemented by phone calls and written submissions. The feedback directly shaped the design and implementation of the BEP.
Key Themes from Black Entrepreneur Consultations
Holistic Support for Black Entrepreneurs
Participants emphasized that the type of support offered is critical to the success of Black entrepreneurs. Training and support services emerged as the most frequently requested needs, including mentoring, coaching, and capacity building. Black entrepreneurs highlighted the importance of wrap-around supports to guide them through various business development stages. These supports should be available to both new and established Black entrepreneurs, fostering a knowledge-based ecosystem. While funding was deemed extremely important, participants consistently noted that it should complement other forms of support rather than being the sole focus.
Persistent Barriers Facing Black Entrepreneurs
A significant portion of discussions focused on the ongoing barriers faced by Black entrepreneurs. Access to capital was identified as the most critical issue, with participants citing systemic bias and racism within the banking system as contributing factors. Black entrepreneurs also face challenges in accessing data, knowledge, and business education. Furthermore, organizations that directly support Black entrepreneurs often operate with limited resources.
A Program By and For Black Entrepreneurs
There was strong consensus that the BEP should be run by the Black Canadian community for Black entrepreneurs. While most agreed on the importance of this principle, some also highlighted the need to prioritize expertise alongside cultural background. Key elements for organizations leading the program included demonstrating alignment with program objectives, the ability to tailor support for Black entrepreneurs, transparency, and a history of positive engagement with the Black community.
Building on Existing Knowledge and Avoiding Duplication
Black entrepreneurs and organizations agreed that the program should learn from past and existing initiatives to identify what works and prevent unnecessary duplication of efforts. Streamlining program delivery through connections between relevant organizations supporting Black entrepreneurs was also suggested.
Flexibility and Responsiveness to Diverse Needs
The program must be flexible to address the diverse needs of Black entrepreneurs, considering varying stages of business development, industry sectors, social realities, and financial requirements. The administration of the program should also be adaptable and avoid overly restrictive definitions that might limit participation of Black entrepreneurs.
Prioritizing a Decentralized and Local Approach
Almost all Black entrepreneurs and participants favored a decentralized and local approach to program delivery, with some also acknowledging the importance of addressing regional differences to ensure Black entrepreneurs across Canada can access support.
Insights into Specific Program Components for Black Entrepreneurs
Black Entrepreneurship Loan Fund
The size and type of funding were key concerns for Black entrepreneurs. A major suggestion was to include grants (either standalone or tied to program completion) or partially forgivable loans. Black entrepreneurs advocated for loan amounts to be determined by individual business needs, with many suggesting that the minimum loan amount should be lower than the announced $25,000, with $5,000 being a frequently mentioned figure.
Black Entrepreneurship Knowledge Hub
Discussions around the Knowledge Hub emphasized the importance of trust and transparency in data collection about Black entrepreneurs, which participants believed should be decentralized and potentially gathered from organizations, banks, municipalities, and chambers of commerce. The objectives of the hub should include creating and utilizing collected knowledge, driving policy change, supporting Black entrepreneurs, and integrating with education and training efforts. Participants identified significant knowledge gaps regarding barriers to access, opportunities for success, and Canadian consumption habits, highlighting the need for data to provide better context for Black entrepreneurs’ needs and long-term success.
Black Entrepreneurship Ecosystem Fund
Defining a “Black-led organization” was a key discussion point. Opinions varied, with the majority favoring a definition requiring at least two-thirds ownership by Black individuals, while a smaller group suggested a majority ownership (at least 50% +1). Participants also strongly emphasized the importance of addressing intersectionality within the Black entrepreneur community, ensuring inclusivity for all minorities within the minority, with a specific focus on gender, youth, linguistic minorities, and new Canadians.
Conclusion
The extensive consultations undertaken by ISED provide valuable insights into the needs and priorities of Black entrepreneurs in Canada. The feedback received underscores the importance of a multifaceted approach that combines financial support with tailored training, mentorship, and capacity-building initiatives for Black entrepreneurs. The emphasis on a community-led program, flexibility, and a focus on addressing systemic barriers highlights the unique challenges faced by Black entrepreneurs. The specific feedback on the Loan Fund, Knowledge Hub, and Ecosystem Fund will be crucial in shaping the effective implementation of the Black Entrepreneurship Program to support Black entrepreneurs across Canada.
