Starting and growing a business takes vision, commitment, and grit. For minority-owned and women-owned businesses, it also takes navigating a landscape that hasn’t always provided equal access to the tools, resources, or funding needed for long-term success.
Yet despite those challenges, underrepresented entrepreneurs are leading some of the fastest growing and most innovative businesses in the country. These businesses create jobs, uplift communities, and bring diverse perspectives to industries that need it most.
At Spartan Capital, we believe that access to funding should match the ambition of these entrepreneurs. That’s why we’re committed to providing flexible working capital solutions that empower women and minority business owners to grow on their own terms; quickly, confidently, and without unnecessary red tape.
In this blog post, we’ll dive into the unique challenges these business owners face, the massive opportunities ahead, and how access to fast, flexible capital can help close the gap.
The Growth of Minority- and Women-Owned Businesses
The entrepreneurial landscape is becoming more diverse every year. According to recent reports:
-
Women own 42% of all businesses in the U.S., generating over $1.9 trillion annually.
-
Black-owned businesses grew by over 30% between 2019 and 2023, one of the fastest increases among all demographic groups.
-
Latinx-owned businesses now represent nearly 1 in 4 new entrepreneurs nationwide.
-
Asian American and Pacific Islander (AAPI) businesses are showing strong growth in tech, retail, and professional services.
These business owners are not just participating in the economy; they are shaping it.
However, behind this upward trend lies a difficult truth: access to capital is still far from equitable.
Common Barriers to Funding and Growth
Even as minority and women entrepreneurs continue to start businesses at high rates, many find it difficult to scale not because of a lack of demand, but because of limited access to the resources that fuel growth.
Here are some of the most pressing obstacles:
1. Inequitable Access to Traditional Financing
Traditional lenders often rely on rigid criteria like high credit scores, multi-year financial histories, or extensive collateral; all of which may exclude new and underserved entrepreneurs.
Many underrepresented founders report being denied funding for reasons unrelated to their business’s performance. Others never apply at all, assuming they won’t be approved.
2. Lack of Investor Representation
Venture capital remains heavily concentrated in homogenous networks. Studies show that less than 3% of VC funding goes to women-only founding teams, and even less to Black and Latinx founders combined. For many, equity funding is simply out of reach.
3. Limited Mentorship and Advisory Networks
Access to experienced advisors, mentors, and professional service providers is critical but often uneven. Without guidance on pricing, financial planning, or business development, many entrepreneurs face slower or riskier growth.
4. Underrepresentation in Supplier and Procurement Opportunities
Large-scale partnerships and contracts often drive business expansion. But minority- and women-owned businesses are frequently underutilized in corporate and government procurement.
Despite these challenges, there’s a clear path forward and working capital can be the tool that unlocks it.
How Working Capital Helps Underrepresented Entrepreneurs Thrive
Working capital is flexible funding that can be used for day-to-day operations, strategic investments, or short-term opportunities. Unlike traditional loans, it’s not tied to a specific purchase, and it’s designed to move fast because opportunities don’t wait.
Here are some of the most impactful ways working capital supports minority-owned and women-owned businesses:
1. Fueling Growth Through Marketing and Brand Building
One of the most powerful ways to gain visibility in any industry is through smart, consistent marketing. However, executing a successful strategy requires both time and resources… something many small business owners are short on.
How working capital helps:
-
Fund digital ad campaigns, social media marketing, or influencer partnerships
-
Invest in content creation like videos, blog posts, or branded visuals
-
Hire a freelance marketing expert to build or manage strategy
-
Launch new website features or e-commerce platforms
Example: A Black-owned beauty brand uses Spartan Capital funding to launch a full rebrand and influencer campaign, tripling website traffic and increasing conversions during the holiday season.
2. Hiring Staff and Building Operational Support
Scaling often requires more hands. Whether it’s bringing on your first part-time employee, expanding your team, or outsourcing specific roles, building the right team takes capital and the sooner it’s in place, the faster your business can grow.
How working capital helps:
-
Cover onboarding costs and early payroll
-
Hire contractors or part-time employees during high-demand periods
-
Outsource time-consuming work like bookkeeping, fulfillment, or admin support
Example: A Latina entrepreneur running a growing catering business uses funding to hire additional staff and a kitchen assistant, allowing her to accept twice as many clients without burnout.
3. Purchasing Inventory and Equipment Upfront
For product-based businesses, having the right stock on hand is everything. But bulk purchases, vendor minimums, and upfront manufacturing costs can quickly deplete working cash, limiting your ability to scale or respond to spikes in demand.
How working capital helps:
-
Purchase large inventory orders in advance to take advantage of supplier discounts
-
Acquire equipment that increases capacity, efficiency, or quality
-
Prepare for peak seasons without draining reserves
Example: An AAPI-owned boutique uses working capital to place a larger seasonal order ahead of Lunar New Year, allowing them to meet demand and improve margins.
4. Investing in Technology and Infrastructure
Modern businesses need more than just products or services; they need streamlined systems to run efficiently. From CRM platforms to payment processing, the right technology helps level the playing field and improve customer experiences.
How working capital helps:
-
Upgrade outdated systems
-
Implement automation tools to reduce manual work
-
Improve customer service with better communication platforms
-
Enhance security and compliance with cloud-based solutions
Example: A woman-led law firm uses Spartan Capital funding to invest in new case management software, cutting admin time by 30% and allowing the team to serve more clients without hiring additional staff.
5. Exploring Expansion and New Revenue Streams
Growth often means taking a leap… launching a new product, opening a second location, or testing a new market. These transitions require both vision and capital.
How working capital helps:
-
Launch pilot programs or product lines without pulling from operational cash
-
Cover early rent, renovations, or marketing for a new location
-
Fund packaging, branding, and digital setup for new revenue streams
Example: A woman-owned wellness studio uses funding to launch a digital subscription platform for on-demand classes, creating a passive income stream that supports year-round stability.
Why Spartan Capital Stands Behind Diverse Entrepreneurs
At Spartan Capital, we know that the success of minority- and women-owned businesses creates stronger communities, more inclusive industries, and a better future for everyone.
Our team is proud to support diverse business owners by providing:
-
Fast access to working capital- with no long waits or excessive paperwork
-
Flexible use of funds- to be used where they’ll have the biggest impact
-
Responsive, supportive service- with a real team that understands your goals
We believe you shouldn’t have to prove your worth through endless paperwork. If your business is ready to grow, Spartan Capital is ready to help you get there.
Minority-owned and women-owned businesses are leading the way in entrepreneurship, but access to capital must catch up to their drive, skill, and impact. With the right support, these businesses don’t just survive they scale, innovate, and lead.
At Spartan Capital, we’re proud to be part of that story. If you’re ready to take the next step in your business journey whether that means hiring help, upgrading your systems, or launching something new, we’re here to provide the working capital you need to move forward with confidence.
Discover how Spartan Capital can help fund your vision.
Apply For Funding Today!