Did you know that, according to a report by McKinsey and Company in 2020, only 4% of Black-owned companies in the U.S. survive past the launch stage, even though 20% of the Black Americans are business owners? The pandemic also forced several businesses worldwide to shut down. And this, in turn, led to around 58% of Black-owned businesses facing financial distress in the U.S. The report also states that 41% of such businesses closed their doors between February and April 2020.
In another study by the advocacy groups, The Main Street Alliance and Color of Change, 40% of Black-owned ventures could have only another six months as compared to around 55% of their White-owned business counterparts. But several Black-owned businesses even boomed during the pandemic, all thanks to the right step by the owners. Start-ups are sprouting and the future of Black entrepreneurs is looking better in every way.
BETA-I Canada resolved to find an approach that would help the Black entrepreneurs improve their success. It started through Acquisition Incubators which is aiming at equipping the Black Canadians with the right tools for becoming the CEOs of existing small-to-medium-sized enterprises.
What’s its Objective?
BETA-i engages the proven ETA model to expand and enhance all the needs of the Black searches for a successful business. It offers the right kind of support to substantially allow the searchers to maximize their rewards on the business front.
The model was created with 5 distinguishable objectives:
1. Boost awareness regarding the search funds and maximize the number of Black searchers in Canada.
2. Increase the success of the searchers in finding, closing, and managing small-to-medium high potential businesses.
3. Deliver unrivaled training, guidance, and support to everyone from their in-house mentors, advisors and investors.
4. Incorporate the structures which are culturally diverse in their training techniques, and focus on the mandates which are generally overlooked but have had great successful solutions in the past.
5. Significantly turn the odds of success in favor of all the Black searchers.
About the Incubation Structure of BETA-I Canada
BETA-i, being the first non-profit organization to enhance the Entrepreneurship Through Acquisition (ETA) model for Black-owners, provides the tools and knowledge that are needed to pursue the entrepreneurial dreams of the aspirants. The ETA model was first developed in 1984 at Harvard University and later on standardized at Stanford Graduate School for Business. Soon after, it started spreading its wings to different business schools and entrepreneurs worldwide. BETA-i primarily focuses on the Black entrepreneurs and its search fund incubator will act as a step that will eventually allow the Black entrepreneurs to find, acquire, manage and grow a privately-held business.
Wrapping it Up,
BETA-i provides one-on-one mentorship and coaching for the searchers and works closely with them. They take into account the expertise of different professionals and search experts. This is one critical principle that they follow from the very beginning of a search till the closing of the deals. Their approach is truly beneficial for the Black entrepreneurs who get the right guidance for achieving what they need. They also can get more focused on achieving the best deals and then navigate through the business transactions in a successful manner.
BETA-i was founded in 2020 and it is the first-ever Black-focused acquisition incubator in the world and the very first search accelerator in Canada. It influences the ETA model to expand and enhance the needs of Black-owned businesses. Their model also offers extensive training, resources, support in financing, and providing world-class proficiency in search. It aims at increasing the probabilities of success dramatically for entrepreneurs to accelerate their time in finishing the ETA journey and becoming the most successful CEOs right at the beginning of their careers. Please visit www.betaicanada.org to know more about them or to support the evolution of Black entrepreneurship in the country.
For more such features on several businesses across industries in Canada, do not forget to subscribe to our CanadianSME Small Business monthly magazine.