![]() “We know that when you’re first starting out, every cost counts,” said Lauren Romer, Director of Raleigh Founded. ![]() Raleigh Founded also has a program designed to help break barriers for entrepreneurs by providing a legitimate business space. “Our DRA programs have been very successful in meeting the some of that unmet need in downtown and effecting outcome but are also proof that more gap resources are needed,” said Gaskins. ![]() ![]() She specifically referenced The NC Small Business Impact Grant Program ( RETOOLNC ).ĭRA also has two programs designed to help fill the gap for storefront business owners: the Storefront Upfit Grant, which provides up to $10,000 in direct upfit cost assistance, and the Pop-Up Shops at Martin Street, a retail incubator program for minority- and women-owned storefront businesses. “A lot of minorities are not aware, or have access to, I’ll say, some of the funding that is available for these storefront startups, or whether it is an online startup,” said McGee. Gaskins said the funding barrier is “particularly acute” in attracting minority-owned storefront businesses in downtown Raleigh. “They need capital to start and scale the business, and they need to have started the business in order to access conventional financing.” Grants and ecosystem partners hope to fill the gap “For a new entrepreneur with limited personal capital to self-invest or friend and family investors, that can be a very challenging cycle to get past,” said Gaskins. “I believe that is mainly because the majority of the businesses that are starting have what it takes to start a business but do not have access to the resources and tools they need to become bankable,” said Wright, whose organization is focused on Black and underserved entrepreneurs. The study reported that only 30% of business owners can qualify for a loan in their first year, a statistic that Mel Wright, the owner of the Raleigh-based startup incubator The Wright Village, was not surprised to hear. “So they’re thinking, ‘I need to go to a credit union, I need to go to my financial institution to get a loan for my business,’ and they’re scared to death, borrowing this money, taking a leap, asking ‘Am I going to be able to afford to pay it back?’” “I’m finding that when we talk entrepreneurship, and we talk about lending, a lot of people don’t know about crowdfunding, or angel investors, or even CDFIs,” said McGee. McGee said that many new entrepreneurs are not aware of nontraditional funding. “This only underscores the need for flexible and non-conventional financing options to supplement conventional financing for entrepreneurs to better adapt to a quickly changing market,” said Gaskins. Gaskins said that timing delays highlight the need for access to capital. “Contextually, those timing delays are increasing across the board the same as inflation and other costs are rising as well.” Storefront startups need capital, but many can’t access “A three-month delay in a business opening and the subsequent revenue doesn’t delay the three months rent that is due,” said Gaskins. Gaskins said that in addition to well-known startup costs, storefront owners may face “hidden” speed-to-market costs, like construction delays, permitting requirements, and staff recruitment. Upcoming accelerator for insurtech & fintech startups headlines Triangle Startup Guide additions Will Gaskins, VP of Economic Development and Planning for the Downtown Raleigh Alliance (DRA), says these estimates may be “just the tip of the iceberg.” (Applications for ENCEP open in July, and the next cohort begins in September.) $100k in their first year, plus “hidden” costsĪccording to the study, storefront business owners are spending $100k on average in their first year, while online businesses averaged $35k. “A lot of our programming helps startups really get off the ground with minimal cost,” said McGee. McGee’s firm was contracted to create the cohort-based Eastern North Carolina Entrepreneurial Promise (ENCEP) program, launched by Partner Community Capital and the National Institute of Minority Economic Development and funded by NC IDEA.
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