This article is a preview of The Logic’s Daily Briefing newsletter, sent every weekday. Sign up for a free trial.

A new report from the Canadian Black Chamber of Commerce (CBCC) looks at how Black-owned businesses across the country are faring, examining access to capital, revenue and hiring talent. The report, which surveyed 53 Black entrepreneurs, draws attention to areas where founders face systemic barriers and identifies opportunities for support. Here’s a look at some of the key numbers.

35%: The share of entrepreneurs who said they’d never accessed funding programs. Another 22 per cent said they barely used available programs, while just 10 per cent said they did often. “Overwhelmingly, Black business owners were not utilizing funding opportunities available specific to the business community, nor were they aware of funding available more specifically to the industry in which they were operating,” the report reads. Respondents cited ineligibility as the most common reason for not accessing funding. Lack of information about programs was another common barrier. Several Black business owners also cited racial or gender discrimination when dealing with banks. 

71%: The percentage of entrepreneurs who launched their companies through bootstrapping rather than accessing outside investments. Forty-four per cent said they tapped federal COVID-19 support funding. Just 18 per cent of those surveyed said they felt very comfortable talking to financial institutions about funding options. 

4 years: The maximum length of time most companies (75 per cent) had been in business at the time of the survey. While most of the entrepreneurs were new to the field, they also skewed young, with 57 per cent of respondents between 30 and 40 years old.

56%: The percentage of respondents who generated no more than $50,000 in annual revenue in 2019. Another 21 per cent said they generated between $50,000 and $100,000 a year, while four per cent said they brought in more than $500,000. 

22%: Respondents who were “very familiar” with the two largest sources of public startup funding in the country: Business Development Bank of Canada (BDC) and Export Development Canada (EDC). Entrepreneurs who successfully accessed funding through BDC (which helped sponsor the report) were “few and far between.” One respondent, an attorney and business owner, said they were finally able to access BDC funding with help from their accountant. “I would try on my own for years and not be successful,” they said.

What next? The report outlines five recommendations to improve support for Black entrepreneurs. They include having financial institutions incorporating a “culturally competent lens” when working with Black business owners. “Financial institutions must partner with community organizations to ensure that equitable funding decisions for Black entrepreneurs have an Afrocentric lens and consider the community’s specific needs,” the report reads. It also suggests bolstering mentorship for Black entrepreneurs—particularly for Black immigrants—which many respondents identified as a weak spot. The CBCC also recommended improving financial literacy through programs specific to Black entrepreneurs, and urged federal funding bodies to improve relationships with Black founders. Finally, the report notes the need for the government to reframe COVID-19 aid programs—for example, by lowering revenue requirements or eliminating employee-payroll requirements—so more small Black-owned businesses are eligible.