(Editor’s note: This is the first installment in a monthly series speaking with minority business owners and leaders. Each will be asked their views on minority-business conditions in the state and for ways to improve those businesses’ chances for success.)
Lisa Ranglin’s advocacy for minority businesses grew out of personal experience. Ranglin watched her brother, who owned a landscaping business, struggle to get resources that would help his company grow, such as bank loans, government contracts and general business advice. After speaking with other minority business owners, she realized her brother was not the only one facing these challenges.
“The Black and brown business community, we were sort of invisible,” she said. “No one thought about us, advocated for us.”
Having carved her own path to success in the banking world out of an impoverished Jamaican upbringing, Ranglin founded the Rhode Island Black Business Association. Since its creation in 2011, the nonprofit has grown to 3,100 members, tackling a host of challenges faced by minority-owned businesses through a combination of advocacy, programs and resources.
The nonprofit’s biggest victory, in Ranglin’s eyes, is that a once-overlooked community is now recognized. The dual combination of COVID-19 and the racial-justice movement brought on by the death of George Floyd have only heightened that awareness – inspiring what Ranglin hopes will be systemic changes in government, banking and corporate giving that begin to reverse centuries of disparity.
“The playbook we’ve used historically has not worked,” she said. “It has to be rewritten.”
According to Ranglin, the best way to create change for the state’s still-struggling minority business community is through the people who are already working with them – RIBBA and the Rhode Island Hispanic Chamber of Commerce among them. Funding has been the biggest challenge for RIBBA, a volunteer-led organization that has continued to forge ahead with new programs and resources throughout the pandemic.
In the works is a partnership with major employers who can identity workers of color to participate in a leadership training program designed to help them advance their careers. RIBBA is also looking to expand its mentorship program for high school and college students.
Ranglin’s ultimate goal is to establish a “one-stop shop” that addresses all needs of the Black business community.
1. Do you believe racism is keeping minorities from starting businesses in the Ocean State or succeeding when they do? Yes. The impact of long-term discriminatory policies and practices based on racism and biases has stymied the growth of starting and maintaining minority-owned businesses in Rhode Island.
Businesses owned by people of color tend to be located in underserved neighborhoods, which puts them at a disadvantage when applying for a bank loan. In some instances, minority-owned businesses are unable to secure loans due to low credit scores, no banking relationship or being unbanked. In addition, the market value of houses in lower-income areas where minority-owned businesses exist is lower. This lowers the value of collateral that the business can leverage. All of these factors converge and create a system which does not provide opportunities for growth and success of minority-owned businesses.
2. How dependent do you think most minority-owned businesses are on the support of fellow minorities? Is that a sustainable business model? With adequate resources, I strongly believe that minority-owned businesses would support their fellow minority businesses. However, with inadequate or limited resources, small businesses are often in competition with each other, and face the same struggles to stay afloat and to thrive. RIBBA continues to work with federal, state and city leaders to make investment in Black and brown business a priority. We believe this would be a vehicle for eliminating health, economic and wealth disparities.
3. What one thing could Rhode Island do to boost the odds for minority-owned business success? Government and private entities ought to see the urban core as part of the larger Rhode Island economy and seek to fund and value its businesses and families appropriately. Minority-owned businesses should not be [deprived of] services needed to thrive based on ZIP code. In addition, there is an urgent need for greater focus on revitalization of underserved communities that includes significant intentional investment in existing business organizations led by people of color as potential sources of wealth and job creation.
4. Are you aware of any minority-owned businesses that have been forced to turn somewhere other than a bank for a loan? Do you believe the state’s lending institutions generally treat minorities fairly? Yes, because minority-business owners are often unable to access traditional loans; often out of desperation they turn to high-interest loaners or even predatory lenders.
To address this disparity in accessing loans, RIBBA has established a loan fund which provides low interest-rate loans with streamlined underwriting processes. RIBBA also works with businesses to conduct credit repairs, improve credit scores and create business plans, helping them with messaging as to how they will utilize the loans.
I think the state is making an effort to treat minority-owned businesses fairly. However, having a greater understanding of how racism impacts the urban core and working to address disparities will set these businesses on equal footing with their counterparts. The state should continue to learn and make a commitment to do more.
5. If a minority entrepreneur asked you where they could turn to for support for their business, where would you direct them? I would look to RIBBA as the leading organization addressing issues [affecting] Black and minority-owned businesses for the last 10 years. Our organization is membership-driven and provides tailor-made programs and services for minority-owned businesses. If for any reason RIBBA is unable to provide the service needed, we would direct entrepreneurs to our partnering organizations, such as the Rhode Island Small Business Development Center, Urban Ventures, SCORE and R.I. Commerce Corp.
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
