A program to introduce underrepresented communities to entrepreneurship through business acquisitions is expanding from New England across the country.
The Providence, Rhode Island-based impact investing firm New Majority Capital announced Monday plans to expand its bETA Accelerator. The program is a 10-week accelerator to help underrepresented entrepreneurs acquire, run and scale an existing small business.
“People of color own only 20% of profitable businesses in the United States, despite comprising 40% of the population (according to the US Census Bureau). With over 12 million small business owners seeking retirement in the next 25 years, underrepresented entrepreneurs have a unique opportunity to become owners and build generational wealth. We are committed to making that a reality,” Allegra Stennett, co-founder of New Majority Capital, said in a statement.
New Majority Capital launched this program in response to the high failure rates of venture-backed startups. The firm wanted to give underrepresented founders a way to de-risk their entrepreneurship journey by acquiring existing businesses.
Thirty individuals took part in a bETA pilot in Rhode Island earlier this year. The firm said the graduates are in the process of acquiring a small business.
New Majority Capital is partnering with JPMorgan Chase Advancing Black Pathways, an initiative to help the Black community find economic success, for this national expansion of the bETA accelerator.
“Advancing Black Pathways connects Black entrepreneurs with resources such as the bETA accelerator in partnership with New Majority Capital to support their business pursuits,” said Eva Brown of Advancing Black Pathways. “This program promotes acquisition-based entrepreneurship, providing a framework for entrepreneurs to follow instead of starting from the ground up.”
The next cohort is kicking off in Atlanta and will then grow to include other cities. New Majority Capital said 38 entrepreneurs have already been selected for the Atlanta program.
New Majority Capital is also in the process of raising an impact fund, named “NMC Fund I,” from investors. The firm says it uses a revenue-based financing model to fund acquisitions and transfer 100% ownership to Black, Brown and female entrepreneurs over a five to seven year period.
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