Broadening the reach of Black entrepreneurs
Although the number of Canadian Black-owned businesses has grown to an estimated 144,980, the variety of sectors in which they operate hasn’t expanded as significantly. Francisque says while there are some examples of Black innovation in sectors, like technology and health, there are just as many cases where the businesses find better financing in the U.S. market.
“I see businesses that are ready to take off and unless they have a founder rooted in Canada, wanting to grow in Canada for Canada, they are at risk of leaving,” she says.
Broadening the scope of sectors where Black firms operate isn’t just good for Canada, but it’s important for diversity as well, notes Mello Ayo, vice-chair of the Canadian Black Chamber of Commerce (CBCC) Board of Directors. The CBCC shares knowledge and resources, including advisory and mentorship programs, marketing, and guidance to accessing capital with its members.
“We need to diversify to other sectors such as big tech, finance and banking, media and communication, energy, metal and mining, only to name a few,” says Ayo.
“Black businesses have been ghettoized in the sense that they’re largely limited to a narrow range of sectors—food and the service industry, mainly. This heavy concentration in a limited number of sectors is, by and large, due to a lack of access to information, networks, venture capital and restrictive inequitable applications of rules that prohibit Black innovation,” he says.
Overcoming those barriers and creating new opportunities for growth, as well as access to capital, are major priorities in 2024, says Francisque. The focus will be on export opportunities, information about EDC export trade tools and creating connections between the business community and Black entrepreneurs.
“Every organization has their equity-diversity-inclusion matrix and want to be more involved, so EDC is playing a major role in connecting them. Not all businesses are export-ready, but we’re connecting and meeting them where they’re at. A lot of organizations are also providing wraparound support, doing a lot with little, so where we can contribute more to those entrepreneurs making an impact, we’ll be there,” she says.
“Long term, the goal is to create a path for the next champions, to create business leaders, to continue to empower them and their communities. When we see it’s possible with others, we know we can get there.”