There are three key areas U.S. small business owners struggle — lack of capital, marketing and overall business operations. Coupled with significant economic, sociocultural and institutional barriers, Black entrepreneurs face even more unique challenges when creating businesses. Small business grants have proven to be a saving grace for entrepreneurs in our community looking to fund their dreams without the burden of debt.
What are Business Grants?
A business grant is a financial investment granted by a funder, whether it be a government entity, foundation, organization, corporation or bank, to an individual or business entity for a specific purpose. Unlike loans, grants do not need to be repaid, making them attractive sources of funding for Black entrepreneurs looking for equitable ways to build their businesses without getting into debt.
Grants, traditionally seen as a non-profit tool, are now more popular for profit-seeking businesses. Following the COVID-19 pandemic and the murder of George Floyd, millions of dollars in financial commitments to Black businesses popularized grant funding through pitch competitions, accelerators, boot camps and giveaways. Today, hundreds of grants are published every month and available to small businesses.
Why Should You Apply for Grants, and How Are They a Pathway to Sustainability?
While the monetary value of grants or investments should not be underscored, many grant programs provide additional benefits beyond funding. These benefits can include mentorship, technical assistance, and networking opportunities that are invaluable for small businesses.
The Black Ambition Prize by Pharrell Williams is a non-profit that funds Black and Hispanic entrepreneurs. Their rigorous application process is designed to prepare founders for fundraising. Whether you win or not, having applied would have made any applicant a stronger candidate for future grants.
Funding is a crucial tool. Business owners fund their businesses in a myriad of ways: fundraising, bootstrapping and applying for loans. But for many of us, these traditional methods are not readily accessible due to lending discrimination. Grants can create equity and provide Black businesses with the capital they need to grow, sustain and scale their businesses.
Small Business Grant Writing Tips
At For All Things Digital, we use an approach called “Brand Before Bucks,” emphasizing how a strong brand and marketing are key to attracting investors and grants. Instead of “money first,” approach and learn how to build a sustainable, grant-worthy business that attracts investors naturally.
Branding Comes Before Filling Out a Grant
Brand strategy is the key to winning grant applications. Branding is how you reach people, tell your story and show them why they should care about your mission. And when it comes to securing grant money, those same branding rules still apply.
When competing with hundreds or even thousands of other grant applicants, you need something to make you stand out.
That’s where your brand comes in. Your brand is your story. It’s what makes you unique. It’s why people should invest in your ideas.
So how do you build a strong brand?
- Define your brand identity: What are your core values? What makes your business special?
- Develop a clear brand message: What do you want people to know about your business?
- Create a consistent brand voice: How do you want your brand to sound?
- Design a professional brand identity: This includes your logo, website, and marketing materials.
By following these tips, you can build a strong brand that makes your business stand out and fundable.
List of Grant Programs Black Entrepreneurs Should Look Out For:
Black Ambition Prize – Black Ambition is a non-profit organization founded by Pharrell Williams that provides funding, mentorship, and networking opportunities to Black and Latinx entrepreneurs in the tech, healthcare and entertainment industries.
- Fearless Fund – The Fearless Fund is a grant program specifically for Black women entrepreneurs.
- Black Entrepreneurs Day – Black Entrepreneurs Day provides grants and resources to Black entrepreneurs.
- Black Girl Ventures – Black Girl Ventures is a venture capital fund that invests in Black and Latinx women-led startups.
- New Voices Fund – The New Voices Fund invests in women-led businesses in media, technology and healthcare.
- Mogul Millennials – Mogul Millenials is a grant database for young entrepreneurs of color.
- For All Things Digital – For All Things Digital is an open-source grant-sharing platform.
Adebukola Ajao is a passionate advocate for small businesses, empowering them with creative and affordable digital marketing strategies through her agency, B.D.Y. CONSULT and open source business resource platform, For All Things Digital. As an adjunct professor at Northeastern University and a sought-after expert, she’s shaping the future of marketing while sharing her knowledge to help small business owners thrive.
