Authors: Leslie Lum and Judith Paquette
There is a lot of discussion about the impact of the pandemic on startups. 2020 year 4.3 million companies opened, An increase of 24% over 2019. By the end of July 2021, the rate of increase was even greater, an increase of 41% over 2020.
What’s even more exciting is that these new entrepreneurs are more likely to be black, Latino, and female. The proportion of black companies has more than tripled, and female companies have almost doubled. Could it be a silver lining for the pandemic?
Prior to Covid, the rate of entrepreneurship had been declining for a long time. This is a disturbing trend because start-ups create jobs, promote innovation, and diversify the economy. The tremendous growth of entrepreneurship has made people hope that a turning point has come, and our country is back on the track of becoming a hot spot for entrepreneurship in the world. More importantly, BIPOC companies are also included.
When we opened the Innovation Lab in the fall of 2020, we tasted this new vitality. The ten companies that signed up for the course are all people of color. Seven out of ten people are women. They are eager to learn how to take their business to a new level.
Innovation laboratories are regarded as part of the entrepreneurial ecosystem to nurture new businesses. Five cities in the East Side and the Port of Seattle (Kirkland, Bellevue, Redmond, Renton, and Issaquah) can see that the pandemic is closing businesses. Stimulus funds can help older and larger companies, but new companies really have no support. Three years ago, they formed a consortium called Startup 425 to start the business, and now the two of us are involved in the development of post-Covid recovery solutions.
It helped us participate in two decades of the UW Foster Consulting and Business Development Center, which has been incredibly successful in working with underserved companies and has a proven knowledge base. But entrepreneurs need more than knowledge. They need to be motivated and take action. We recruited mentors and expert consultants who participated free of charge.
We have established a pilot innovation laboratory with ten companies. The results of the two API businesses in the pilot are simply miracles. Yavnika Cana, Is the founder and chief impact officer Impactika Consulting LLC, A digital marketing, strategy and social change consulting company. She said: “I was introduced to a group of great mentors, teachers, and real changers who are passionate about changing the status quo through business. Every week I meet with a group of benevolent people who want to improve, learn more and build a local network. Together. Since I joined the Innovation Lab, my business has doubled.”
Daniel Ingetaraji K, Co-founder and CEO Document 3C , Tells how the pandemic has dealt a huge blow to his company’s sales as the world shifts to “remote everything” and changes their business methods forever. Companies have to switch to a digital model. He said that the innovation lab may be one of the best things that happened to them during the pandemic. “They let us think critically about our business model, our customer base, and our value proposition using the business model canvas-honestly, this provides us with broad fresh air to think strategically about our business.” They Act quickly to adapt to themselves and help their clients adapt to the remote world. The results are shocking. The first quarter of 2021 is their best ever. They are currently doubling the number of employees to meet customer needs, and if all goes well, they expect to increase by 125% to 150% in 2020.
These success stories are even more amazing because According to the data, 130,000 more Business closures during the pandemic This makes the already bleak survival rate worse-only half of the companies can live to 5 years. It is expected that the shutdown rate will be higher by 2021.
Unfortunately, the story does not end there. Research done by Gusto It shows that BIOC business owners have higher signs of pressure. Although 51% of companies think they will go bankrupt within a year without support, a larger percentage of BIOC companies—73% of black owners and 71% of AAPI owners—have the same feeling.
There are many partners in the region who are determined to make the surge in BIPOC entrepreneurship a turning point, not a flash in the pan. Pushing BIOC towards digital maturity is an important part of survival under the new normal. The one-day seminar Boost on Saturday, September 25 has developed and provided this training aimed at getting more digital, no matter where the company is.
Boost is full of strategies and tools to help small businesses publish stories online. You will hear the three superstars BIPOC CEO Brandon Ting, Ana Castro and Lewis Rudd talk about their amazing growth, which is largely driven by a great digital strategy. Three promising start-ups led by BIPOC women will show how they can quickly transform their businesses. Online giants Google and Facebook will attend. They and other generous sponsors are offering this seminar to businesses for free.
Registered address: https://app.brazenconnect.com/events/xBE1E