Startup vs Small Business Development for Minorities

Supporting small business and startups for entrepreneurs in general has its challenges. When you are from a minority, under-served or under-represented community, there are even more, non-typical challenges.

There is a big difference between a startup and a small business. The biggest difference is in the mindset of the individuals starting the business. Entrepreneurs are unique in so many ways, and the same is true for start-up and small business.

Whether technology or place-based, and the stage of the business — idea stage, start-ready, or operating, the difference is in the mindset.

Most of the individuals in minority groups start a business because they have no other choice. They are coming from a survival perspective. As they continue to grow the business — and this is why many startups in minority groups stay small — they continue to operate in the desperation or survival mode mindset: “I’ll gather as much cash as I can, do as many jobs as I can, get so I have cash to survive tomorrow.”

A small business, meanwhile, is somewhat different as they may have a structure in place that allows them to build and grow.

Supporting small business development means asking How we can help them scale up?

Many times the startup that began in survival mode grew up to be a small business, but unfortunately the mindset stayed the same — get as many jobs as I can, keep as much cash as I can, and keep going. This does not allow for small business development to grow.

The first thing that needs to happen for those who want to support small business and startups in the entrepreneurial world of minorities, underserved or underrepresented communities is to focus on helping them shift their mindset from startup/survival mode to growth mode and on to investment mode.

That shift can be painful, scary, and it can be a big hurdle to overcome.

It takes a long time to change a culture or mindset.

That is why it is critical to provide the right support from the right people, understanding, empathizing and sympathizing with those going through the process.

BEFORE YOU GO

We see our blogs as opportunities for dialogue. Please share your thoughts as comments.

1. What can you do to support small business?

2. What can you do to support startups?

3. What insights do you have in supporting minority/under-served/under-represented entrepreneurs?

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