If you’re a woman or minority entrepreneur, chances are you’re not as well-connected to the resources needed to grow your company compared with your white male counterparts, according to Social Venture Network (SVN).
For over 25 years, the San Francisco-based nonprofit made up of values-driven business leaders and investors has been helping “profit with a purpose” entrepreneurs get off the ground, but one gap for this movement of mission-driven companies is the absent level playing field for women and minority entrepreneurs.
The traditional “old boys’ network”, SVN explains, has always been a powerful source of support and money for promising entrepreneurs. But an Emory University study shows that it makes business sense to support women and minorities too.
To be exact, it found that women-led social enterprises generated an average of 15 percent more revenue than their male-led counterparts, yet they are 40 percent less likely to be funded. Similarly, minority-led firms are 35 percent less likely to receive venture capital financing than non-minority-led firms.
In response to this problem, SVN launched an Indiegogo campaign last week to fund scholarships and support services to women and minority social entrepreneurs. The goal is to raise $25,000 but as a “flexible funding” campaign, all funds will go to SVN even if it doesn’t reach its target. The campaign is well on its way to success. So far, over $10,000 has been raised between 22 funders in just the first week, with over a month left before the campaign ends.
“We’re raising money to offer scholarships and valuable support services to women and minority entrepreneurs — resources that can help them connect to investors, mentors and peers. And we can’t think of a better investment than that,” SVN addressed.
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