Entrepreneurs of Color

For the past two years, the United Way has been studying entrepreneurship in Philadelphia in the context of our mission to end intergenerational poverty. Over the course of our research a troubling story has emerged: entrepreneurs of color working to launch and grow business have odds are stacked against them -- for reasons rooted in decades of inequity. In Philadelphia, where minorities make up roughly 60 percent of the population, the field of entrepreneurship can seem inaccessible. Currently 80 percent of businesses in the city are white-owned. Addressing this inequity will require deeper understanding of the barriers entrepreneurs of color face, and investments in solutions proven to work. Our research took us beyond Philadelphia to explore evidence-based models supporting minority entrepreneurship. One solution stood out - a model called the Entrepreneurs of Color Fund - which has been implemented in Detroit, the South Bronx, Chicago, and elsewhere. These cities have developed ecosystems designed intentionally for entrepreneurs to drive inclusive growth, create jobs, and strengthen their local communities by connecting them to the three M’s: Money (growth capital), Market (connections/contracts) and Management (education/talent). In partnership with the City’s Commerce Department, Office of Diversity, Equity and Inclusion, and Philadelphia Industrial Development Corporation, we are launching a multiyear design and implementation process that will align partners and invest in entrepreneurs to drive inclusive growth through a Philadelphia Entrepreneurs of Color Fund. This fund will provide capital and business supports and create a coherent end-to-end ecosystem of entrepreneurial support organizations and resources in the city to create a more diverse class of business owners in Philadelphia. Through this initiative we aim to increase access to capital, support business growth in Philadelphia neighborhoods, and create accessible and livable jobs.