By Pauleanna Reid, Forbes
Black women have outpaced white men in starting a business according to recent studies. Yet despite being among the fastest growing demographic of entrepreneurs, only 3% of Black women are running mature businesses. This is largely because building a strong, growing entity that has moved past its starting stage requires access to capital. A barrier for growth that highlights the inequities women of colour continue to face in finance. Black women run businesses not only get approved for loans at rates 20 percent lower than men but also receive significantly smaller loan amounts as well.
For Dr. Roshawnna Novellus, a fintech and investing expert and founder of EnrichHER, her mission is to change that. EnrichHER, the only digital lending platform specializing in connecting diverse entrepreneurs to capital, is Novellus’ solution to fuel inclusive economic growth by providing business owners with capital, coaching, and connections.
“I believe that women entrepreneurs are the cornerstones of society; our businesses not only create jobs, but they strengthen economies and sustain whole communities,” states Dr. Novellus.
In 2017, Dr. Novellus founded EnrichHER by gathering 50 organizations in Atlanta to test her idea. The full program launched in February 2019, receiving applications from 3,000 women-led businesses. “EnrichHER is the perfect name because we’re trying to put money into companies that have gender diversity in the leadership position. And by doing so, we’re enriching the business and enriching her,” Dr. Novellus explained. The platform focuses on two different types of customers. One being the funder profile – either an angel investor or a small angel group – that wants to fund a new majority founder. The other funder type is for a larger organization such as PayPal to deploy greater sums of money to well-qualified business owners. Providing the ability to make a financial transaction directly through EnrichHER makes it frictionless for funders to make investments. “Everything is built into our platform, and they can walk away a year later with a principal plus interest payment and knowing that they have funded new majority founders,” stated Dr. Novellus.
In 2017, Dr. Novellus founded EnrichHER by gathering 50 organizations in Atlanta to test her idea. The full program launched in February 2019, receiving applications from 3,000 women-led businesses. “EnrichHER is the perfect name because we’re trying to put money into companies that have gender diversity in the leadership position. And by doing so, we’re enriching the business and enriching her,” Dr. Novellus explained. The platform focuses on two different types of customers. One being the funder profile – either an angel investor or a small angel group – that wants to fund a new majority founder. The other funder type is for a larger organization such as PayPal to deploy greater sums of money to well-qualified business owners. Providing the ability to make a financial transaction directly through EnrichHER makes it frictionless for funders to make investments. “Everything is built into our platform, and they can walk away a year later with a principal plus interest payment and knowing that they have funded new majority founders,” stated Dr. Novellus.
Dr. Novellus is no stranger to gaining access to resources. She is one of very few Black women founders who has raised over $1 million in venture capital. But her journey toward economic empowerment and leveraging the power of investments began when she was just 15 years old. Recognizing that she would require a strategic plan to reach her goals, Dr. Novellus raised over $600,000 in scholarships to fund 11 years of higher education. She achieved this herculean feat by reaching out to over 200 companies to inquire about scholarships. Her persistence worked, and companies decided to invest in her educational goals.
Much of her determination and advocacy for economic equality began with the conversations held in her household growing up. Defying common misconceptions about women and their perceived lack of financial knowledge, Dr. Novellus was taught differently, “My mother always told me that women were the best at managing money and managing finances, even though other people often tell us otherwise. Women are the best because they typically have to manage all the money in every household.” Dr. Novellus’ mother encouraged her daughter to be knowledgeable and feel confident in any kind of financial transaction by giving her hands-on experience from an early age. “Outside of learning how to invest in the stock market at 12, I told my mother that I wanted to do the taxes for our family, so she allowed me to read through the tax books. And she believed that I could do it,” Dr. Novellus explained.
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