Black Vulnerability in Business
- April Mata
- Dec 30, 2025
- 4 min read
Safety, Sustainability, and the Cost of Misinformation
There is a quiet moment many Black entrepreneurs share. You decide to bet on yourself. You open a browser tab. You search, How do I start a business? And suddenly the internet turns into a crowded market of promises, urgency, and price tags.
Pay for this. Pay for that. If you don’t, you’ll be behind.
This is where vulnerability enters business ownership. Not because we lack intelligence or drive, but because systems have rarely been built with our safety in mind. What follows is not a warning meant to scare. It’s a guide meant to protect.
This article exists to help you research before you invest, especially when forming an LLC, and to name the ways misinformation preys on our communities under the guise of “this is what wealthy people do.”
The Business of Selling Fear
Many first-time entrepreneurs are charged hundreds or thousands of dollars for things that are free or inexpensive:
Paying someone to obtain an EIN (which is free)
Paying for basic incorporation paperwork while operating as a staff of one
Being told you must set up payroll, complex tax strategies, or multiple entities immediately
These services are often marketed as insider knowledge. They are framed as shortcuts to legitimacy. And they are frequently justified with phrases like:
“This is how rich white folks do it.”
But context matters.
What works for a multi-generational, asset-backed business does not automatically work for a new solo entrepreneur. When advice skips context, it becomes dangerous.
Why These Traps Catch Us More Often
Black entrepreneurs face structural barriers that make misinformation more costly and more common.
1. Unequal Access to Capital
When traditional funding is harder to secure, paid services can feel like the only option. The pressure to get it right the first time creates urgency, and urgency is fertile ground for exploitation. Think about check cashing scams, payday loan scams, rent-to-own scams, and more that prey on our desperation. In 2022 alone, payday and similar small-dollar loans drained more than $2.4 billion in fees from borrowers across the U.S., money that’s mostly coming from low-income individuals. That same year, borrowers took out over 20 million predatory loans totaling nearly $8.6 billion in loan volume. These scams have an average APR of around 390 %. You heard us right: Three Hundred Ninety Percent APR. We cannot allow a lack of access to make us pay TEN TIMES the standard bank loan APR.
2. Limited Wealth Buffers
Without intergenerational wealth or collateral to soften mistakes, a single bad decision can ripple for years. Spending thousands unnecessarily is not a small inconvenience. It can be the difference between sustainability and shutdown.
3. Smaller Access to Vetted Networks
Many entrepreneurs rely on word-of-mouth guidance because formal mentorship pipelines have historically excluded us. Unfortunately, misinformation travels just as fast as wisdom.
4. Fear of Falling Behind
Racism, bias, and constant scrutiny create a sense that we must overperform to be taken seriously. That fear makes us more likely to accept costly advice without verification.
This is not a personal failing. It’s a systemic one.
The Real Consequences of Bad Advice
We’ve seen this before.
During the PPP loan era, thousands of people were encouraged to apply without understanding eligibility, documentation, or long-term implications. Now, many are dealing with audits, repayment demands, and legal stress, even jail time.
Misinformation doesn’t just waste money. It creates exposure.
Business safety is just as important as business growth.
Three Legitimate Resources You Can Trust
These are places designed to inform, not profit from your confusion.
Applying for an EIN is free. You do not need a third party to do this for you.
Website: https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number
If someone is charging you for this service, it is a scam.
The SBA provides clear guidance on:
Choosing a business structure
Registering your business
Understanding taxes and compliance
They also connect you to free or low-cost counseling.
SBDCs offer free, one-on-one support from trained advisors who can help you:
Decide if an LLC is right for you
Understand state filing requirements
Avoid unnecessary expenses
Website: https://www.sba.gov/local-assistance/resource-partners/small-business-development-centers-sbdc
Three Ways to Fact-Check Before You Pay
Before you invest money, pause and verify.
1. Ask: Is This Required or Optional?
If something is legally required, it will appear on a government website. Optional services are often framed as mandatory to increase sales. Watch out for "bundles" or price plans that often have these added.
2. Research the Seller
Search the company name along with words like complaint or scam. Look beyond testimonials. Patterns matter.
3. Ask a Free Expert First
Before paying anyone, ask an SBA counselor, SCORE mentor, or SBDC advisor:
“Is this something I actually need right now?”
If the answer is no, believe them.
Sustainability Is the Goal
Business ownership should not require unnecessary sacrifice or silent suffering. Sustainability means:
Knowing what you can do yourself
Paying for expertise only when it truly adds value
Protecting yourself from legal and financial exposure
Vulnerability in business is not weakness. It is honesty in a system that often relies on silence.
When we share information, we reduce harm.When we research before we invest, we build safer futures.
Your business deserves protection, not pressure.
This article is part of an ongoing effort to increase safety, sustainability, and informed decision-making for Black artists.
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