Collaboration gives Black entrepreneurs support and funding for success

There are huge obstacles to starting a new business, but when it’s a Black-led venture, the barriers multiply. That’s why the Black Entrepreneurship Alliance and partners, including York University, are doing the work to help give Black entrepreneurs the tools and supports they need to achieve success.

Across Canada only 2.1 per cent of businesses are Blacked-owned and that figure falls to about a quarter per cent for Black-women-led business.

“Black businesses have been historically disenfranchised from access to capital, knowledge and resources to grow their businesses. Less than two per cent of venture capital funding goes to Black founders. The absence of funding for Black-led companies negatively impacts the resilience and competitive edge of the Canadian economy,” says Olu Villasa, program manager at the Black Entrepreneurship Alliance, considered the first Black-focussed entrepreneurship program in northwest Toronto.

Addressing the challenges Black entrepreneurs face takes collaboration and teamwork to break down systemic barriers.

Through the Black Entrepreneurship Alliance (BEA) – an initiative funded through the Black Creek Community Health Centre and in collaboration with York University’s YSpace, TD Community Engagement Centre, and the Schulich Executive Education Centre – 238 ventures in Black-led tech, food and beverages have been supported so far and growing. The goal of the BEA, which receives funding from Canada’s Federal Economic Development Agency for Southern Ontario, is to increase Black entrepreneurship, help break through barriers, reduce inequity, create a sense of community and resilience, invest in those communities and support through resources and tools.

The newest development out of the collaborative initiative will help young Black men under the age of 30 to fulfill their entrepreneurial dreams through the inaugural Alfred Anucha Award in Entrepreneurship (A3E). The A3E was created and funded through an initial donation of $50,000 by the Anucha family and in partnership with YSpace and the Black Entrepreneurship Alliance.

“The generous donation by the Anucha family will serve as a lasting memory of a loving and brilliant young Black man whose light will continue to shine through the start-ups being supported through this award,” says Black Creek Community Health Centre’s Executive Director Cheryl Prescod.

Four aspiring Black entrepreneurs recently won the award, which includes $2,500 each and an opportunity to participate in free, specialized entrepreneurship programming through YSpace.

The award commemorates former York student Alfred Anucha, a visionary, young entrepreneur who passed away at the age of 26, whose mother, York Associate Professor Uzo Anucha, the York Research Chair in Youth and Contexts of Inequity, teaches at the School of Social Work in the Faculty of Liberal Arts and Professional Studies.

Prime Minister Justin Trudeau stopped by earlier on award day to speak with competitors and was greeted by York University President and Vice-Chancellor Rhonda Lenton and Black Creek Community Health Centre’s Executive Director Cheryl Prescod, while Member of Parliament for Humber River-Black Creek Judy Sgro and MP for Hamilton West, Ancaster, Dundas and Minister of Federal Economic Development Filomena Tassi, along with the BEA team and leadership staff from Black Creek Community Health Centre, were also in attendance.

As Alfred’s sister Adanna Anucha says: “Bet on Yourself. Bet on the Future. This was Alfred’s mantra and encapsulates the vision of A3E….We hope this award will serve as a living tribute and memorial to honour Alfred’s legacy as a true innovator and dreamer.”

Another way York and the Black Entrepreneurship Alliance is helping to nurture Black entrepreneurs is through the Black Entrepreneurship Alliance and YSpace’s Investment Bootcamp program to support Black founders navigate key stages in their startup journey. It’s a four-month program designed for early-stage and capital ready, Black-led startups ready to secure funding through access to bridging capital, educational workshops on navigating pre-seed and seed stage financing, mentorship, one-on-one coaching, advising on fundraising strategy, and connections building between ventures & investment network.

“We know that historically, less than one per cent of investments go to Black founders in North America. Our hope with this program is to create a greater pipeline of Black-led ventures that are investment ready as well as build a network of investors that are committed to investing in Black-led ventures,” says David Kwok, director of entrepreneurship and innovation at York University’s YSpace

By joining together, the next generation of Black-led initiatives can aspire to more on their way to success.