CLEVELAND — Getting a small business off the ground is no easy feat, and finding ways to keep it afloat can be even more challenging. However, there’s a local program that helps entrepreneurs in communities of color who find themselves facing financial roadblocks.
Statistics show Black and Hispanic small business owners had less liquid wealth in 2022, with just 5% of Black Americans holding some business equity compared to 15% of white Americans.
This creates a large barrier for those looking to grow their business.
On Good Morning Cleveland, we highlighted one of several programs in Northeast Ohio that are providing education and tools to help entrepreneurs in historically underserved neighborhoods in Cleveland manage and grow their businesses.
For one young woman with a dream, it's making a big difference.
Navigating the ups and downs of operating a small business proved challenging early on for artist Justine Johnson.
"You pour a lot more in financially than you get back in the beginning," said Johnson.
Much like the material she uses to create resin, growing a small business takes a lot of patience.
"Resin is very stubborn and is very hard to work with," said Johnson.
Johnson said she is an artist first, so the business side is not something she is at all familiar with.
Turns out Johnson is not alone.
In 2020, Chase Bank launched a $30 billion initiative to provide free coaching for entrepreneurs like Johnson.
"She doesn't have the resources, and she deserves them just like any other big business," said Latrese Steplight with Chase Bank.
The multi-billion-dollar investment is designed to grow already established small businesses in minority and underserved banking communities.
Steplight, a senior business consultant in Cleveland, said it’s a move she hasn’t seen before, and demand is huge.
"I’m very busy. It's probably the busiest I've been in the 30 years I've been in financial services," Steplight said.
Steplight is working alongside Johnson as she looks to take her business, JustDesigns, to new heights.
"The first thing we worked on was her organization because she was at capacity. She's trying to do a whole lot with just one person," said Steplight.
The checklist also included identifying Johnson's strengths and weaknesses, such as organization and some things standing in her way of accessing capital.
"I always tell people minutes turn into hours and hours turn into days, and a lot of small business owners, they just don't have time, they don't have time to learn," said Steplight.
It's an opportunity to learn what Steplight herself didn't get when she tried to launch her own small businesses years ago. So, this work is personal for her and brings her story full circle.
"If I had the help that I am giving today for free, I don't know if I'd be standing in front of you right now. So, everything happens for a reason," said Steplight.
Early on in their partnership, Johnson said she has learned a lot so far.
"I think it does more than just bridging that financial gap. There's also an educational and knowledge gap that's there too," said Johnson.
The helping hand is giving Johnson hope for the future.
"I am excited to see where my business will be this time next year," said Johnson.
There are no costs or criteria to participate in this program, and you don't need to be a Chase Bank customer.
Currently, 74 senior consultants in 35 U.S. cities are mentoring and coaching small business owners.
Chase plans to expand to 38 cities by the end of this year.
Other financial institutions like U.S. Bank, Huntington and T.D. Bank have programs and millions of dollars of grants to empower underserved entrepreneurs.
