NEMIC Inequality Resilience Report of Minority and Women Business Enterprises
A Bright Future for Innovation Among Minority and Women Business Enterprises in Rhode Island
By Gloria Kuzmenko-Latimer, NEMIC Program Intern
Upon arriving in Rhode Island for my first year at Brown University last fall, I had not given the state much previous consideration, nor did I expect to find such a vibrant entrepreneurial ecosystem. Rhode Island is home to countless small businesses, exciting new ventures, and non-profit organizations, making it both an exciting and, at times, overwhelming environment for aspiring innovators to navigate.
With that said, the charming Ocean State is by no means immune to the challenges and inequalities that exist within business and entrepreneurship as a result of centuries and decades of systemic inequalities in the US. Specifically, these challenges most impact Minority and Women Business Enterprises (MWBEs), or businesses that are more than 50% owned and run by those that identify as racial minorities and/or women. Over the past year, the New England Medical Innovation Center (NEMIC) has pioneered the EMPOWER Program, an accelerator providing funding, mentorship, and education resources specifically to MBE and WBE business owners and leaders. Working with NEMIC on this program only further illuminated the uniquely challenging experiences of women and minority founders in building their businesses in a number of areas from education, to networking, and funding. Listening to the experiences, successes, and challenges of these founders, therefore, becomes an invaluable guide for bringing positive change to the entrepreneurial environment in Rhode Island.
Over the past 6 months, NEMIC worked to engage with MBE and WBE/MWBE founders through interviews and surveys to hear their specific accounts of what it means to pursue business and entrepreneurship as a woman and/or minority in Rhode Island. This research culminated in the creation of the Inequality Resilience Report of Minority and Women Business Enterprises, a report highlighting the experiences of MWBE founders and their stories. The report pulls from previous literature and research, as well as informational interviews and surveys with 22 founders with a diverse range of backgrounds, focus areas, and identities. The insights from the generous efforts and initiative of these founders in sharing their journeys reveal a number of areas for improving access to education opportunities, networks and connections, and funding for minorities and women in business. Below is a brief overview of the findings of the report, which only begins to illustrate the stories and experiences shared by the participating founders. The entire report, providing far greater detail, can be found at the link above.
Of the founders surveyed and interviewed, 91% agreed that women and minority founders experience unique challenges in entrepreneurship, and 72% encountered these barriers in their own work.
Access to education in business can hinder the progress and confidence of an individual looking to launch a venture. From navigating new jargon to understanding business concepts, starting a business often presents a number of knowledge barriers for those without previous access or guidance in the entrepreneurial space. As stated by Melissa Nassaney, founder of Full Circle Pelvic Health, “...if you don’t have the money or a program guiding you it's really hard to even just make the connections on what to do.” Many of the founders interviewed had passion, drive, and extensive expertise in their industries. But this alone is often not enough to break through the barriers of bringing an idea of a business to reality, especially when the industry is significantly dominated by a specific demographic of already-advantaged individuals. Many of the founders were introduced to business and entrepreneurial education through the programs offered in the Rhode Island entrepreneurial ecosystem, highlighting the importance of these programs.
Seventy-two percent of survey respondents identified that more opportunities for building a professional network would increase the ability of minority and/or women founders to thrive in the Rhode Island entrepreneurial ecosystem.
In addition to access to knowledge and understanding of business as a whole, specific guidance and expertise play a critical role in the success of a venture. This kind of support can come in the form of mentorship, strong professional networks to lean on, and introductions and referrals all of which can make a significant impact. Often, this area posed unique challenges for the founders interviewed in this report, many sharing co-founder of Revive Therapeutic Services Akos Antwi’s sentiment that there is “...difficulty accessing mentorship and networking opportunities for minorities and females.” When asked about their access to mentorship opportunities, a number of the founders shared that they did not feel as though they had mentors in their entrepreneurial journey, much less mentors who shared their identity and a deep commitment to standing by them in all of the unique challenges they face as MBE or WBE founders.
Of the founders who completed the post-interview survey, 60% claimed that the entrepreneurial ecosystem in Rhode Island has been lacking in funding and financial support specifically for minority and female business enterprises.
A number of the founders included in this report described their current progress on their respective ventures and the ways in which funding hinders their progress. WBE founders specifically shared a common concern regarding funding: the stark inequalities in VC funding to women founders. Geanina Oana Costea of Q2Behave revealed her concerns about the prospects of gaining VC funding, knowing that “raising funds is a lot about connections and networking. Certainly getting venture funding for women-owned businesses is incredibly challenging, as we know, the statistics are not great.” Almost every single founder, whether looking to raise funds through Venture Capital or other means, shared a sense of significant uncertainty in the financial futures of their ventures.
All of these factors beg the question: what can be done to increase the opportunities for current entrepreneurs who identify as women and/or minorities and future generations of founders who share these backgrounds?
While there are current programs, resources, and opportunities available for business owners and entrepreneurs in the Rhode Island ecosystem, there is evidently still work to be done. This is a clear indication that founders from disadvantaged backgrounds want their experiences, voices, and hopes to not only be heard– but be acted upon. Based on the findings of this research, below is an outline of areas of focus that would have a significant impact on the experiences, opportunities, and outcomes of Minority and Women Business Enterprises in Rhode Island:
Raising and allocating additional funding for MBE and WBE founders through specific scholarship programs, grants, and accelerators that recognize the unique challenges of securing funding as an MBE or WBE founder.
Creating programming that specifically takes into account the experiences, unique challenges, and lack of resources that are often a reality for MBE and WBE founders. This may be as simple as adding a section to current programming addressing these challenges, eventually creating entire programs that specifically support MBE and WBE founders.
Creating opportunities for networking, connections, and relationship-building among MBEs and WBEs. This might look like creating networking events and opportunities specifically for MBE and WBE founders to meet each other and experts with a drive to promote diversity and inclusion.
Providing training and resources to mentors to better understand how to work with minority and women founders and tackle the unique challenges they face. In addition, business owners and founders with mentors should have a deep commitment to going the extra mile and standing by them in the challenges they face due to their identities.
Creating more streamlined processes for communicating the various available programs and opportunities for founders. The wealth of programs centered on businesses and entrepreneurship in Rhode Island, while incredible, can be overwhelming to navigate.
Asking the MBE and WBE founders themselves about the challenges that they are facing in their businesses and considering how these challenges may be combatted. All of the founders who contributed to this report did so on an entirely voluntary basis, and their willingness to share must be met with an even greater willingness to listen.
“There are a lot of people out there with good ideas and good intentions to solve the big and the small problems, and they just need a hand forward.”
These are only a few ideas of change that may be able to increase the opportunities and potential for innovation across Rhode Island when MBE and WBE founders feel fully supported. This report hopes to highlight the potential that Rhode Island has to become an even stronger entrepreneurial ecosystem, one that leads the way in inclusion, diversity, and equity in business. Let’s work together to create a place that any founder, no matter their identity or background, can call home and use as a launchpad to bring about a brighter future in Rhode Island and beyond.
