Empowering Black entrepreneurs with: Economic security, resources and confidence

BY PAUL JUNOR

On May 31^st, 2022, The Federation of African Canadian Economics marked its one-year anniversary. The non-profit organization was formed in 2021 with the partnership of the Government of Canada to help Black business owners gain access to loans, capital investment and additional business resources. The announcement that FACE will provide $160 million to Black businesses to address wealth gap issues is huge.

In my email communication with Chelsea Moore of NKPR, I posed several questions to Tiffany Callender, Chief Executive Officer of FACE. With respect to the type of business that received funding, she states, “The three top sectors of businesses who have received financing are in retail trade, professional, scientific and technical services, accommodation and food services.”

Companies located from or as far as Yellowknife and Victoria in Western Canada, and Moncton in Eastern Canada have received financing. It is businesses located in Ontario, Quebec and Alberta that most of the loans have been distributed to.

In response to the question,“ What has been the response of these communities?” Callender observes, “We currently have over 25,000 profiles on the FACE platform.

A large majority of existing Black business owners we financed have shared that this is the first time they have been approved for a business loan. However, through this process we have observed that many entrepreneurs require technical support to produce their corporate documents to demonstrate their readiness for financing.”

She revealed that FACE has an alternative risk-analysis model that makes them different from traditional lenders. It provides access to business development services to help businesses increase their capacity. This is done through a data-driven process that enables entrepreneurs to become ready for finance and thus ensure the sustainability of the program.

The question was posed as to how POC-led businesses increase Canada’s global competitiveness. Callendar responds “We will edge out competition in any market if the innovation and talent of owners from equity-seeking communities is nurtured and prioritized. Diversity is a competitive advantage and equally beneficial for the people as well as our country.” She states that entrepreneurship is the economic foundation for Black generational wealth. She notes specifically, “By financing Black founders and owners, we contribute to their potential in scaling their companies and generating capital that can move into wealth management.” 

FACE is pivoted in many ways to play a significant role to address the wealth gap issue for Black businesses. It can serve as a partner in achieving their short and long-term goals by building prosperity for themselves, their families and their community.

With respect to the mechanisms that FACE utilizes to ensure that funds are distributed equitably, Callender observes that there are four key pillars involved. They are:

• Information
• Best practices
• Networks
• Capital

She outlined the steps as follows:

• We are intentional in providing Black entrepreneurs access to information from experts who can provide the best practices in business planning.
• We use our platform to open networks for entrepreneurs to engage with the Canadian business ecosystem to facilitate opportunities to find mentors and sponsors that can support their growth.
• The access to capital through our organization and its partners is a first milestone for development, but we intend to support the companies we finance to scale and become wealth creators.

Tiffany Callender concluded, “Reaching this milestone is a pivotal moment in Black entrepreneurship. Acknowledging the adverse barriers that Black entrepreneurs face, is the work we do at FACE for Black business owners, across Canada. On the road ahead, we look forward to furthering our mission to empower Black entrepreneurs with: economic security, resources and the confidence to establish a more powerful presence in the Canadian business landscape.”