Access to early-onset entrepreneurial experiences in cities like Minneapolis matter…especially for minorities and women.
Early-stage exposure to entrepreneurship—whether through incubators, mentorship programs, or access to resources—is crucial for leveling the playing field. Entrepreneurship is a powerful vehicle for economic empowerment, but historically, certain groups, particularly minorities and women, have faced significant barriers to accessing entrepreneurial opportunities. In cities like Minneapolis, where economic diversity and innovation are key components of the urban landscape, providing minority and women entrepreneurs with access to early-onset entrepreneurial experiences is not just an opportunity—it’s a necessity.
According to the U.S. Census Bureau’s 2020 data, Minnesota ranks in the top 10 states for the number of women-owned businesses, yet women still represent only 36.1% of all businesses in the state. Meanwhile, in Minneapolis, the disparity is more pronounced, with minority-owned businesses often struggling to secure the same levels of capital, resources, and opportunities as their white counterparts. Minority entrepreneurs face unique challenges such as limited access to funding, mentorship, and networks, which stymies their ability to scale and thrive.
In Minneapolis, Black and Indigenous entrepreneurs face particular challenges in accessing venture capital. The 2021 State of Black Minnesota Report indicates that Black entrepreneurs in the state encounter significant barriers to capital, noting that access to financial resources remains limited, especially compared to their white counterparts. Data from organizations like the Kauffman Foundation and the National Venture Capital Association (NVCA) show that the share of venture capital directed toward minority or women entrepreneurs in Minneapolis and across the country remains disproportionately low.
The Center for American Progress notes that minority entrepreneurs, particularly Black and Latino individuals, often have less family wealth to rely on and may lack access to professional networks that can provide guidance. Minneapolis has a well-developed entrepreneurial ecosystem, with a strong focus on tech and innovation. However, the entrepreneurial ecosystem remains somewhat less diverse in comparison to larger cities, which can limit opportunities for minority entrepreneurs. A significant issue, is that in Minnesota intergenerational poverty has had a particularly persistent affect communities of color. Data shows that poverty in the city has been disproportionately high among Black, Indigenous, and People of Color (BIPOC) populations, which is compounded by factors like racial disparities, limited access to high-quality education, housing instability, and systemic barriers to economic opportunity. The history of racial segregation in Minneapolis, combined with the legacy of systemic racism, education disparities, and lagging impact of efforts to support inclusivity. Networks in Minneapolis can be less diverse, which may pose challenges for entrepreneurs of color who lack connections in the predominantly white business community.
In Minneapolis, in particular, access to capital and social networks isn’t just a challenge for minority entrepreneurs. In terms of gender equity in funding, many studies reported that, in Minnesota, only about 2-3% of venture capital funding goes to women-led startups, a stark contrast to the around 30% representation of women in the entrepreneurial space. Another key statistic in the 2020 report by PitchBook shows that nearly 80% of venture capital funding in the U.S. goes to companies founded by men, with the majority of this capital directed at white male entrepreneurs. This trend holds in Minneapolis as well, where data notes that white male founders continue to receive the lion’s share of funding. Undeniably disparities persists despite increased efforts to encourage diversity and equity. Providing early-onset entrepreneurial experiences through formal education, internships, etc. Local community support structures can mitigate these challenges.
The Benefits of Early Onset Exposure
In fact, data shows that entrepreneurs who receive early-stage support are more likely to succeed. According to a report by the Kauffman Foundation, entrepreneurs who receive mentorship are five times more likely to succeed than those who do not. This is particularly crucial for minority and women entrepreneurs, who may not have the familial or professional networks that many white, male entrepreneurs benefit from. The benefits of early-onset exposure to entrepreneurship are manifold, especially in a city like Minneapolis, which boasts a vibrant, diverse community and growing entrepreneurial ecosystem. Providing mentorship and resources in the early stages helps equip entrepreneurs with the skills, confidence, and knowledge to navigate the often-difficult landscape of starting and growing a business.
Building Confidence and Competence: The early stages of entrepreneurship are riddled with uncertainties. For women and minority entrepreneurs, these uncertainties are compounded by the lack of role models and mentors who share similar cultural backgrounds. Early exposure to entrepreneurial training programs, which could include technical skills development, financial literacy, and business management, provides the foundation for confidence and competence. By learning these skills early, entrepreneurs are more likely to take the risks necessary to grow their businesses.
Creating Economic Mobility: Minority and women entrepreneurs who receive early-stage entrepreneurial training are better positioned to create wealth not just for themselves, but for their communities. According to a 2021 report from the U.S. Small Business Administration, minority-owned businesses contribute over $1.4 trillion to the U.S. economy. By fostering an ecosystem where these businesses are nurtured from the outset, cities like Minneapolis can create sustainable, long-term economic growth.
Access to Capital: One of the most significant barriers to entrepreneurship is access to capital, and this is particularly true for women and minority entrepreneurs. In 2021, only 2.6% of venture capital funding went to Black entrepreneurs, and just 1.9% went to women entrepreneurs, according to Crunchbase. Early-onset exposure through accelerator programs, pitching events, and other initiatives can connect entrepreneurs with potential investors, helping them access the capital necessary to launch and scale their businesses.
Building a Stronger, More Diverse Economy: When minority and women entrepreneurs succeed, they contribute to a more diverse and inclusive local economy. Minneapolis, with its increasing focus on diversity and inclusion, stands to benefit greatly from a more balanced entrepreneurial landscape. The city is home to a growing number of initiatives, such as the Minneapolis-St. Paul Economic Inclusion Plan, aimed at increasing the participation of underrepresented groups in business ownership. By giving these entrepreneurs access to early entrepreneurial experiences, Minneapolis can accelerate progress toward these inclusion goals.
Expanding the Local Job Market: Startups are often the backbone of job creation, and minority- and women-owned startups are no different. Research from the National Women’s Business Council shows that women-owned businesses employ over 9 million people in the United States, generating billions of dollars in revenue. When these entrepreneurs are given the tools and experiences they need to succeed, they can hire employees from their communities, contributing to a thriving local job market.
A Call for Action
Cities like Minneapolis are uniquely positioned to support the growth of minority and women entrepreneurs through early-onset entrepreneurial experiences. Public and private sector collaboration is key in fostering programs that provide training, mentorship, and networking opportunities to entrepreneurs from underrepresented groups. Minneapolis has the resources, talent, and willpower to become a national model for inclusive entrepreneurship.
By supporting early-stage programs and investing in the development of women and minority entrepreneurs, the city can unlock the full potential of its diverse population. The result will be a more robust and resilient economy—one that benefits all residents and drives innovation across industries.
As the data clearly shows, the key to success for these entrepreneurs is exposure to the right resources at the right time. For cities like Minneapolis, providing early-onset entrepreneurial experiences is not just a smart economic strategy—it’s imperative if we ever want to see equitable entrepreneurial access, success, and sustainability as a lived reality.
