Diverse Entrepreneurs Create a Stronger Economy
As a society, diversity in business ownership is a powerful driver of economic growth and community resilience. Minority-owned, women-owned, and LGBTQ+-owned businesses help create jobs, innovation, and economic equity. Yet, no matter how much they contribute to giving our communities vibrancy and character, they often face systemic barriers when they try to access capital.
Basically, traditional bank loans and venture capital act the way they have in the past. They favor businesses with established connections and collateral, which textbooks will say is “smart,” but it leaves many minority small business owners at a disadvantage. Equity crowdfunding is changing that narrative, giving business owners direct access to their communities for financial support and eliminating gatekeepers who have historically excluded them.
The Importance of Funding Minority Small Business Owners
We see things a little differently. We believe - we know - Investing in diverse entrepreneurs isn’t just the right thing to do—it’s also smart economics. The research doesn’t lie. It shows minority-owned businesses boost local economies, create jobs, and drive innovation - all things most people want in their communities. According to the U.S. Minority Business Development Agency, minority-owned firms generate over $1.4 trillion in annual revenue and employ more than 8.7 million people.
When they try a bank to get growth capital, they often struggle to secure funding. Traditional financial institutions have historically underserved diverse entrepreneurs, limiting their opportunities for expansion. Crowdfunding and community-driven financing models provide a smart alternative, helping all small business owners have access to the capital they need.
Equity Crowdfunding Works: An Example
Equity crowdfunding is helping diverse entrepreneurs grow, and one great example is LegitFit, a minority-owned, LGBTQ+-owned, and woman-owned business based in Braddock, PA.
LegitFit: Strengthening Communities Through Fitness
Led by award-winning personal trainer Lish Danielle (Melisha Hutchins), LegitFit is on a mission to make fitness accessible, dynamic, and community-driven. What started as a personal training and wellness coaching business is now expanding into a dedicated brick-and-mortar location, thanks to support from everyday investors through crowdfunding.
With her raise of over $28,000 on the Honeycomb platform, Lish was able to build out her state-of-the-art content studio, a centralized brick-and-mortar gym, and purchase high-quality fitness equipment that allows people of all strengths, abilities, and mobilities to workout.
Final Thoughts
When diverse entrepreneurs succeed, we all win. Their businesses strengthen local economies and create jobs. Yet, too often, traditional financing models overlook these business owners. Equity crowdfunding is providing an alternative path—one where small businesses can grow with the support of their strong communities, rather than being at the mercy of traditional lenders.
By investing in diverse entrepreneurs like LegitFit, people are supporting businesses— AND they’re fueling communities, inclusivity, and economic growth. Together, we can champion funding diversity and help small businesses thrive.
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