The Role of Mentorship in Supporting Racialized Entrepreneurs

Framework curated by Nicolle Jaramillo, Research Analyst at MindFrame Connect

‍
In the dynamic realm of entrepreneurship, the significance of racialized groups is increasingly recognized, revealing a nuanced landscape where minorities play a pivotal role. The presence and contributions of ethnic minority businesses have been acknowledged as crucial to the economic fabric of nations [1]. Despite this recognition, the term “minority entrepreneur” remains complex, encompassing immigrants and marginalized communities, and reflecting broader societal issues [1]. Scholars have long explored the racialized and gendered dimensions of entrepreneurship, often framing these studies within psychological or economic contexts [2].While some research delves into the intrinsic qualities of marginalized founders, others focus on the external barriers they face [2]. Understanding these dynamics is vital for funders and mentors aiming to foster inclusive and equitable entrepreneurial ecosystems.
‍

Mentorship is vital for the success of entrepreneurs, particularly those from racialized groups. Here’s how it plays a critical role:
‍

• Building Self-Efficacy: Mentors help entrepreneurs develop self-efficacy through role models and social comparison, enhancing their entrepreneurial skills [1].‍

• Addressing Unique Challenges: For Black American and immigrant entrepreneurs, mentors who share similar racial or cultural backgrounds can provide relevant guidance on navigating microaggressions and systemic biases [1].

• Expanding Networks: Mentors assist in accessing crucial business resources such as financing and equipment, which is especially important for those with limited local networks [1].

• Bridging Knowledge Gaps: Personalized mentoring helps disadvantaged entrepreneurs who lack formal education or high-skilled experience to gain essential skills for business scaling and profitability [3].

• Dynamic Power Relations: In mentoring relationships, both mentors and mentees hold power. Mentors offer knowledge and connections, while mentees decide how to apply this advice, making the relationship mutually beneficial [2].

• Fostering Business Growth: Mentoring through incubators can provide the support needed to improve business operations and achieve long-term success, addressing gaps in knowledge and experience [3].

Negative experiences in mentorship can also shed light on areas needing improvement, particularly for racialized groups. Key issues include:
‍

• Lack of Encouragement and Unrealistic Expectations: Participants often felt unsupported and overwhelmed. Despite these challenges, some used the experience to forge their own entrepreneurial paths, valuing the lessons learned [1].
• Power Dynamics and Training Separation: An accelerator program separated "inclusive leadership" training from primary mentorship training. This separation, with inclusive training conducted after mentorship began, conflicted with the accelerator’s diversity goals [2].
• Ineffective Diversity Tools: Tools for supporting diversity were not subject to iterative feedback like those for business goals within the accelerator program of analysis. This separation may perpetuate the underrepresentation of minoritized groups [2].
  ‍

Mentoring racialized groups is crucial for fostering an inclusive and vibrant business environment. Effective mentorship not only addresses unique challenges but also builds self-efficacy, expands networks, and bridges knowledge gaps for marginalized entrepreneurs. However,  it’s vital to address issues like power dynamics and inadequate diversity tools to enhance mentorship effectiveness. By committing to continuous learning and improvement, funders and mentors can better support diverse entrepreneurial talent, driving both innovation and economic growth across communities.
‍

Do you want to explore more?

• Take a look at MindFrame Connect's Framework

• Watch one (or more) of these Ted Talks:

- The Value of Mentoring Women and Minorities in Tech‍

- Defining Successful Mentorship

- Mentorship will change the world

• Listen to the Finding—and becoming—great mentors and sponsors podcast episode.
‍

References

[1] Smith, T. D. (2022). A Narrative Inquiry of Black Women Entrepreneurs and Their Perception of the Mentoring Process (Doctoral dissertation, University of Phoenix).

[2] Campbell, B. (2024). Doing diversity in entrepreneurial accelerators: A mentor’s view of tools, translations, and the (re)production of social structures. Scandinavian Journal of Management, 40(4), 101344.

[3] Assenova, V. A. (2020). Early-stage venture incubation and mentoring promote learning, scaling, and profitability among disadvantaged entrepreneurs. Organization Science, 31(6), 1560-1578.

‍