‘A lot of catching up to do.’ Black entrepreneurs embrace financial literacy in bid to create generational wealth

Sariah Morgan and sister Ariella are busy holding court in the busy Bramalea City Centre directing shoppers to vendors selling all manner of merch in the square.

The founders of lip gloss firm iAh Beauty and fashion house Bossari Kids are just 13 and six but are already firmly on the path of entrepreneurship. Through a third company, Young Bosses in Business, the pair also provide pop-up experiences for kids between six to 17.

The initiative has drawn dozens of youth entrepreneurs from various locations in the GTA, and this summer YBB will host its third event that will include classes on financial literacy, a fashion event and a pitch contest.

We didn't feel supported by adults," said Sariah of the spark that launched Young Bosses. People were underestimating us. We wanted to create something for ourselves."

Her mom, Shantell, adds that the girls also wanted to pass on lessons they've learned as small business owners, sharing customer service and marketing tips along the way.

Stories of entrepreneurial seeds being sewn are growing and a sign that Black Canadians are beginning to take their financial future into their own hands with an eye to building generational wealth. And the numbers back it up.

According to a report from Statistics Canada, Black businesses led by men doubled from 1.8 per cent in 2005 to 3.5 per cent in 2018. Meanwhile, Black women-owned businesses increased from 1.3 per cent to 2.2 per cent during the same period.

But a February 2023 report from Statistics Canada also suggests Black-owned businesses in Canada are typically smaller and less profitable than firms led by white people or other racialized groups.

Government agencies, Black organizations and Canada's big banks are all working to change that through programs such as Futurpreneur's Black Entrepreneur Startup Program and Foodpreneur Lab's Start to Scale Path.

Efforts are also being made with the federal government's Black Entrepreneurship Program, working with organizations like Foundation for Black Communities. And financial institutions are stepping in, working with organizations like The Black Opportunity Fund to boost Black entrepreneurship to create access to capital and financial education.

Faith Biyapo, regional manager of Black community business development at TD Bank Group, said the attitude toward financial literacy and education has shifted in the last decade among diverse groups, despite the traumas that often come with discussing and understanding finances.

Financial literacy is a continuous, lifelong learning thing, and for us as a Black community, we have to understand - and we're starting to - that we're very behind when it comes to other groups," Biyapo said. History hasn't been nice to us, so we have a lot of catching up to do."

And for too long, he added, lack of financial literacy has cost business owners opportunities to expand and access capital.

Something I've seen quite frequently is that businesses under-report their revenues or profits, thinking that they're going to pay less in taxes, but that harms them in the long run," Biyapo said. When you come to the bank and your business hasn't declared any profits but want to get a loan? The chances are slim if you can't prove you have cash flow potential."

Black mom and pops on the rise post-pandemic

Omobolanle Helen Abajngim owns Zena's Gourmet Popcorn, an online food brand based in Sudbury.

She created the company at a time when many businesses emerged during the pandemic. A June 2022 survey by Intuit, the firm that makes TurboTax and QuickBooks, suggests nearly a quarter of small businesses in Canada were started in the last two years.

We couldn't do much with being stuck inside. Either you were working from home or watching Netflix, or just lounging at home," Abajngim said. I felt the need that people would want to experience going to the movies and enjoying popcorn even at home. I threw flavours that are not regularly bought and sold and started at local farmers markets."

Her hobby-turned-business recently debuted at the Toronto Food and Drink Fest showcasing her products to a big-city audience for the first time.

People were telling me, I like this flavour, or I prefer this one,' so it was an eye-opener for me because it helped me streamline what flavours I'm going to try and get on store shelves," Abajngim said.

But with just two years in business, she admits she has a lot to learn and wants to reach out to Black organizations like Futurpreneur and Foodpreneur Lab.

Biyapo works with business owners to complete applications through TD's Black Entrepreneur Credit Access Program, which provides support for people like Abajngim who need financing, structure and guidance to jump to the next level.

Don't get me wrong. We have some great, high-profile Black businesses in our community, but we need more," Biyapo said. There are levels to financial education, and we have to invest in learning ourselves. It's you saying to yourself, I'm making all this progress. How can I make sure I prepare for growth and prepare for the next 10 years?'"

Fortunately, financial literacy and education are becoming relevant topics of discussion among members of the Black business community, especially with the advent of social media.

Earn Your Leisure podcast hosts Troy Millings and Rashad Bilal along with Master Investor" Ian Dunlap and other guests attracted thousands of Black Canadians for two sold-out Market Mondays" at Meridian Arts Centre in North York in April.

The pair discussed everything from real estate, investing and stock options to artificial intelligence, growing your company and networking.

Get information, learn information, and teach information so people can execute - that's what it's all about," Millings told Black Dollar Magazine. We put the medicine in the candy by being authentically who we are. People gravitate toward things they can understand, so mixing the entertainment aspect with financial education makes it fun."

How to invest in small-market real estate, how to use AI tools like ChatGPT to your advantage, and the best companies to invest in were among the discussions.

We must continue to do this type of work, to educate the community, inspire them, and make them see the importance of financial literacy," Biyapo said. We have to talk about relationships. We have to be comfortable talking about money and spend time working on ourselves on a daily basis."

Those sentiments were echoed by Sariah, who is busy preparing for a pop-up in August showcasing 31 vendors.

It's an important life skill," Sariah said. We want to make sure that under-represented youth are given the opportunity to become entrepreneurs and young leaders so that they can be well educated and confident within themselves and know that they are never too young to start doing what they love."

Jordan Maxwell is a freelance writer in Toronto and is the publisher of Black Dollar Magazine, an online publication for Black entrepreneurs in Canada and the U.S.