OTTAWA — When Sean Whyte opened a fashion store in early 2020, little did he know that a global pandemic would force him to scrap his business plan within months.
Whyte’s Kelowna shop, Gray Hearts Denim, has evolved from selling a range of fashion clothing to making denim face masks.
And while finding a way to be productive during a global pandemic was rewarding, Whyte knew he needed help to get his business back on track.
When he heard the federal government launch the Black Entrepreneurship Program in September 2020, he said he was revived.
“It was a glimmer of hope for many of us,” he says.
The federal government said the program aims to help Black business owners overcome obstacles they face when navigating financial institutions and entrepreneurship in general.
Partnering with the Business Development Bank of Canada and financial institutions, the program has provided nearly $300 million in loans.
The federal government also spent $53 million to create an ecosystem of Black-led nonprofits to offer entrepreneurship support and financial planning services.
During a roundtable between leaders of Black-run business organizations and federally-elected officials, Liberal MP Greg Fergus said the program arose because of the disproportionate challenges Black entrepreneurs face during the pandemic.
Fergus said the purpose of the program is to help black Canadians pursue entrepreneurship on the same basis as other Canadians.
“We’re allowed to make mistakes, that’s ok. Everybody makes mistakes. All I’m saying is give us a chance to make mistakes at the same level (as others),” he said.
Over the years, academics and attorneys have pointed out the obstacles Black people face when navigating financial institutions.
A 2021 study by the Canadian Black Chamber of Commerce in collaboration with the BDC identified access to capital, advertising and promotional skills, and personal development and mentoring as the most pressing needs of black business owners.
However, Whyte said that even the process of getting a loan through the Black Entrepreneurship Program was challenging. Two years after the funding was provided, he is still trying to get a loan.
Despite these challenges, Whyte said he has benefited greatly from the support he has received from one of the partner organizations, the Black Business Association of British Columbia.
The association, which is part of the “ecosystem” of organizations working with the federal government, has helped Whyte navigate the loan application process and provided financial planning resources.
“It meant the world and it probably made the difference if I wasn’t here or here,” said Whyte, who now operates in both a brick-and-mortar store and online.
Nerissa Allen, the co-founder and president of the Black Business Association of British Columbia, said the program came at a time when the black community was grappling with the “traumatic” killing of George Floyd on top of the pandemic.
Allen said it helps remove barriers so black entrepreneurs can do what everyone else is doing, “that is, run our businesses and thrive and thrive and contribute to the Canadian economy in the way we’ve done.” .
On the East Coast in Halifax, Alfred Burgesson was also involved in the program. As the founder and CEO of Tribe Network, his relatively new organization works with the federal government to provide networking opportunities for aspiring entrepreneurs.
Burgesson said he wants provincial governments to step up and also find ways to support black entrepreneurs, noting that the black community has historically been marginalized.
“Canada has an incredible opportunity right now to be a global economic leader and to innovate,” he said.
“Part of that innovation is making sure people who haven’t had the opportunity to contribute before have that opportunity.”
This report from The Canadian Press was first published on February 19, 2023.
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