How a contest is helping to remove barriers for Black entrepreneurs

Two British Columbians have made the shortlistin a competition for a $25,000 prize under a new nationwide contest for Black entrepreneurs.

It's an opportunity being provided by Jackee Kasandy,the founder of the non-profit Black Entrepreneurs and Businesses of Canada Society, who says there are not a lot ofoptions for the Black business community to access funding to scale their businesses.

"It's important to have programs like this that eliminate barriers because we're just trying to get to as equitable a standard as everyone else," said Kasandyfrom her Vancouver retail store.

Over 120 entrepreneurs entered the contest by sending a short video talking about their businesses and how they would use the money.

Five finalists have been chosen, including Deress Asghedom, of Vancouver, and Mwenda Dyck, of Abbotsford, whowill pitch their ideas to a panel of judges at the Black Business Summit 2023 later this month.

Barriers for Black entrepreneurs

Kasandy said the pitch contest is "barrier-free" as it's easier to access than other grants.

Many other programs require applicants to submit a full business plan. Kasandy's contestasked fora two-minute video and was open to people at any stage of their business.

Kasandy says Black entrepreneurs face many obstacles when trying to start or grow their businesses, from their race to having poor credit scores and difficulty qualifyingfor a loan.

She says members of the Black community also have to take extra steps when trying to pitch their business and its viability.

"I have to first prove myself. I have to prove my humanity. I have to prove my smarts before someone can look at the business. But my other counterparts, they'll just walk in with their business plan, and someone will look at them and will trust them," Kasandy said.

A recent survey from the African Canadian Senate Group, conducted by Abacus Data, showed three in four Black Entrepreneurs surveyed believed their race has made it harder for them to succeed as entrepreneurs in Canada.

Kasandysays other factors like a lack of collateral or not owning a home also make it hard for people to get a loan from the bank to kick-start their businesses.

Black Canadians have some of the lowest home ownership rates in Canada, according to Statistics Canada.

Less than half of the Black population lived in a home owned by a member of their household in 2018, while the national home-ownership rate was 73 per cent.

"[A] majority in the Black community do not have collateral, and if you don't have collateral,you can't get funding," Kasandy said.

Finalists from B.C.

Asghedom and Dyck say the contest has helped them connect with other Black business owners.

"I didn't realize there was such an extensive support network of people, "said Dyck, a 22-year-old working on a vertical farm business specializing in growing microgreens tiny vegetable based-greens which are harvested very soon after sprouting to add sweetness or spiciness to foods.

Asghedom, 46, is working on an app called Vaster which willgive peopleinformation about cannabis products.Users scan the product with their phone camera, and the app pulls up information such asCBD levels and side effects.

He says it's important for him to be in the cannabis space, which has disproportionately criminalized Black people.

"I wanted people to see that there is another side to the industry. There's another side to opportunities that can be available to people that look like me."

He saysbeyond the prize money, winning means recognition and validation.

"It helps to show other people that it is possible in spite of the hardships and hurdles that there is a way that you can persevere."

Kasandy hopes to fundraise more money in future years to help more Black entrepreneurs.

"My dream is we're able to give five to 10 businesses a year this amount of money."

For more stories about the experiences of Black Canadians from anti-Black racism to success stories within the Black community check outBeing Black in Canada, a CBC project Black Canadians can be proud of.You can read more stories here.