USA TODAY International Edition

Women of color have a steeper climb when opening businesses

- Zoe Nicholson

GREENVILLE, S. C. – As a Clemson University student in the ’ 90s, Nekita Sullivan and her friends had to pile in a car and drive to Greenville, Seneca or Anderson for Black beauty products and hair care.

The inconvenie­nce of traveling two or three towns over for beauty care gave Sullivan an idea: a multiethni­c beauty bar where students and university employees of all races and hair textures could go in the heart of downtown Clemson.

Sullivan finally realized that dream after more than 20 years, but she didn’t know how difficult it would be.

Women, especially women of color, face more obstacles than their white, male counterpar­ts when opening a small business, according to Ana Parra, director of the newly opened Women’s Business Center in Greenville.

For Sullivan, it took nearly three years after signing a lease at U Center, a mixed- use building in downtown Clemson, to customize her salon and open it. It took months to find a salon manager, hair stylists, nail technician­s and estheticia­ns who were capable of working with all types of hair.

Funding was a major obstacle.

“I was turned down by several banks, I was not able to get a traditiona­l SBA ( Small Business Associatio­n) loan,” she said. She said the lenders wouldn’t “take a chance” on her since they didn’t think her business could be as profitable as her physical therapy job, which earns her up to $ 120,000 a year.

Without a loan, Sullivan used credit cards to get cash. She dipped into her savings, her retirement fund and her monthly income. She is leasing her Greenville house for rental income. She moved back in with her parents to keep costs low.

She estimated she’s more than $ 150,000 in debt. She’s sunk another $ 100,000 of her personal income into the salon.

While there is a “small community” of Black- owned businesses in Clemson – where orange and purple are the colors of choice – racial prejudices and stereotype­s often associated with the South are still around, said Bryant Smith, a Black business owner and

leadership consultant.

“We can’t pretend that people don’t make decisions based on race and culture and those kinds of factors, because people do,” Smith said.

Even with the obstacles and fears – and after 24 years as just a dream – Sullivan opened Butterfly Eco Beauty Bar in downtown Clemson on Valentine’s Day.

Then, a pandemic happened – recession- level layoffs, Clemson University sent students home, the governor ordered salons to shut down.

As of Sept. 10, Sullivan had yet to fully reopen.

Through it all, COVID- 19 has illuminate­d the barriers small business owners face in opening and staying afloat, according to Ben Smith of the Clemson Small Business Developmen­t Center. And in Clemson, COVID- 19 has shown just how reliant entreprene­urs like Sullivan are on the student population.

Women and minorities struggle to access funding

Sullivan’s struggle to find traditiona­l funding was not a rarity, Parra said.

White applicants are more likely to be approved for business financing at banks than their Black counterpar­ts, 80% compared to 62%, according to the Federal Reserve Bank study.

Parra said this is mainly due to white businesses traditiona­lly being more successful, and from the systemic practice of banks not funding Black customers, a Jim Crow- era practice that had lasting consequenc­es.

“Historical­ly, when it comes to communitie­s of color, they have been underserve­d by traditiona­l banking institutio­ns ... we’re addressing many years of people not paying attention to equity and not addressing these biases,” Parra said.

And being a woman of color means your chances of success are even more limited, according to a 2019 report from American Express. Black- womenowned businesses earn less than 17% of the average yearly revenue for all women- owned businesses, the report found.

The Women’s Business Center, a Small Business Administra­tion program, aims to address these equity gaps in the Upstate region, Parra said. The center mentors women, including Sullivan, who own small businesses.

Sullivan said she spent all her money “rushing to open” the store in February, “that money had to come from somewhere, so we had to step back from marketing and advertisin­g to just open.”

But Parra said marketing oneself as a woman- or person of color- owned business is one of the strongest assets women like Sullivan have.

“Business owners like Nekita might not realize that they can bring their authentici­ty of self to their business and might be shrinking themselves … they don’t realize the greatest asset is who she is or what she’s bringing to the table. And I think that we would never, ever advise anyone to hide who they are,” Parra said.

Black- owned business in Clemson lack tracking system

When she was opening the salon, Sullivan did take steps to conceal her identity, fearful of how the downtown Clemson business community would perceive her as a Black woman.

“I was very meticulous about that. When I came here, I was always very cautious about not being seen outside of the front of my building, coming through the back door and not actually identifyin­g myself as the owner ... I did not want that to be a reason why people did not support me,” Sullivan said.

She said she’s tried to overcome her own prejudices and fears and reach out to neighbors in recent months, and has not encountere­d any of the outright racial prejudices she feared.

Pickens County is 89% white, one of the least diverse counties in the state. Nearly 80 years ago, a rural Pickens County road was the site of the lynching of Willie Earle. When members of the Clemson football team hosted a Black Lives Matter demonstrat­ion in June, a caravan of trucks carrying the Confederat­e Flag drove by, drawing online and in- person criticism.

But Sullivan also sees the resurgence of Black Lives Matter rallies as a source of hope, especially in the younger student population­s in Clemson.

“I’m hoping with what has happened with George Floyd and Black Lives Matter and all of that, that it will allow people to be even more comfortabl­e with coming and being more receptive.”

Since Floyd’s death while in Minneapoli­s police custody, about 1 in 5 Americans have made a concerted effort to shop at Black- owned businesses, according to a study from financial health website Finance Buzz.

Smith, the Black business owner in Clemson, said knowing which businesses are owned by members of the African American community is important because putting money into a Black business means it will go to churches, other businesses and nonprofits that support the community. “I understand how I want my dollars to circulate.”

But nobody seems to know just how many Black- owned businesses there are in Clemson.

“I have been trying to get one ( a list) for months. No one has it that I can find,” said Susan Cohen, president of the Clemson- Area Chamber of Commerce.

That’s why Smith and Cohen, along with a newly formed committee aimed at addressing racial equality in Clemson, are compiling a list of Black- owned businesses in the area.

‘ I feel like if I fail, I fail them, too.’

Sullivan said organizati­ons like the Chamber of Commerce and Small Business Developmen­t Center at Clemson University have been incredibly helpful while she’s been closed, but nothing can replace getting customers in the door.

When the pandemic shut salons and close- contact businesses in March, Sullivan lost all her employees. While she was able to secure a Small Business Administra­tion loan, it’s not enough to keep the lights on for much longer, she said in August.

She’s afraid she might fail: “The whole experience is hurtful, not just for me, but for everybody that’s helped me … because I feel like if I fail, I fail them, too.”

Yelp, an app used to review businesses, estimates 80,000 businesses closed between March and July. In the Upstate, several restaurant­s have shuttered their doors in recent weeks.

But Sullivan hasn’t given up. While she has yet to find a new salon manager or new stylists, she’s working to hire a massage therapist and use the space to teach yoga.

And even though reality might look different right now, Sullivan has not lost sight of her dream.

“Sometimes I’m saying to myself, ‘ I probably shouldn’t have done this’ … but I wouldn’t change my decision.”

 ?? MATT BURKHARTT/ USA TODAY NETWORK ?? Nekita Sullivan, owner of Butterfly Eco Beauty Bar in Clemson, S. C, opened her salon in February before being forced to close down in March because of COVID- 19.
MATT BURKHARTT/ USA TODAY NETWORK Nekita Sullivan, owner of Butterfly Eco Beauty Bar in Clemson, S. C, opened her salon in February before being forced to close down in March because of COVID- 19.

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