Mark Cuban, a well-known entrepreneur and billionaire, recently shared valuable advice for Black women entrepreneurs at an SXSW panel. Cuban, who has built a successful business empire through strategic investments and ventures, emphasized the importance of bootstrapping and self-funding for Black women business owners. “I would tell you not to look for outside funding,” Cuban stated.
“You have to figure out a way to use sweat equity to build it on your own, even if it means starting smaller and slower.”
Cuban highlighted the twofold learning process that entrepreneurs must undergo: understanding their business to make it loanworthy and learning the language of those making investment decisions. He stressed the importance of taking the necessary time to get it right, even if it means facing initial rejection from banks or lenders. “You can’t rush it,” he added.
Advice for Black women entrepreneurs
“You have to take whatever time needed to get it right because if you go into a bank or somewhere to try to get a loan and you don’t get it, you need to be in a position to keep moving forward.”
Despite the challenges Black women entrepreneurs face, such as receiving only 0.35% of venture capital dollars, Cuban believes that self-sufficiency and financial preparedness are key to long-term success. By bootstrapping their businesses, Black women can maintain full ownership and control, though it may require financial discipline, strategic growth, and reinvesting profits to scale over time.
Cuban’s advice comes at a time when Black women entrepreneurs are the fastest-growing group of entrepreneurs in the nation. His perspective suggests that self-funding can lead to long-term stability and independence, particularly for those navigating barriers to securing traditional funding. The SXSW panel, hosted by Clover and featuring Tabitha Brown as Chief Empowerment Officer, aimed to support small business owners.
Cuban’s insights provide much-needed guidance and encouragement for Black women entrepreneurs looking to build successful ventures in the face of systemic challenges.
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