The article “From Fyre Fest to Theranos, the Invisible Racial Subtext of Raising Capital” was published by Lynnise Philips Partin. It illustrates the underrepresentation of people of color in the entrepreneurship industry. The article states that the underrepresentation of the people of color has caused the loss of multibillion of dolor of business opportunity. In American society, success is judged based on what an individual has achieved within a specific time. However, according to the article, success is judged and mirror two times. Partin (2019) pointed out that people of color are always looked down upon and therefore, most of them do not get funding to run their startup business. This, therefore, eliminates most people of color from being startup owners. The analysis of the article is, therefore, focuses on the equality myths, advantages and disadvantages, and ignorance is a privilege.
It is stated that there is an unconscious bias in raising capital, which causes a huge racial wealth gap. It is easier for the white to raise capital for their startups compared to people of color. In the article, it is pointed that Holmes and McFarland could raise money faster for its investment despite involving several sagas, which made it look like a fraud. Several investors term him as the new Steve Jobs and gave him massive funds. This means that when you are white you have the right pedigree and every white investor view your ideas as noble and this gives whites access to massive capital. But entrepreneurs with color are treated differently and for an individual to survive he or she must have means or resources in entrepreneurship. For instance, Tristan Walker, the founder of Walker and Company Brand noted that he has never been given any benefit of the doubt, which propelled Holmes and McFarland to success. He always being judged in two directions and therefore, this one of the reasons why entrepreneurs of color always fail to succeed compared to white entrepreneurs.
The entrepreneur of color struggle hard to get their products in the market. It is also difficult for them to get mentors and finances for their venture. Many of them with great ideas cannot proceed due to discrimination of entrepreneurs of color in the United States. It has caused a great loss of beautiful minds and ideas, which could change the fortune of families and the country’s economy. However, the article pointed out that the white gets more advantage and any business idea easily get funded by white investors. This has caused a lot of loses to investors because nobody is taking time to seriously question the reality of the ideas. For instance, Holmes and McFarland turned out to be a fraud and this made several investors lose their fortune. Therefore, discrimination of color and giving whites priority in business is a costly affair to investors and the market. As noted in the article, entrepreneurs of color become obsolete and could manage run their business due to open discrimination and because of ignorance such as business struggle and fail. This hurts the economy because in some cases, the preferred business ideas because of being white fails and the struggle entrepreneurs of color fail as well. It is, therefore, important to ensure that equal opportunity is given to everyone without any discrimination.
In conclusion, the article pointed out the challenges entrepreneurs of color face to get their ideas supported by investors. And based on the article, most white investors prefer to invest in anything presented by any white entrepreneurs without minding whether it will bear fruit or not. However, the ideas, which is presented by entrepreneurs of color are looking in different directions and usually ignored. This hurt the people of color and the business community hence the economy.
BIBLIOGRAPHY Pantin, L. E. (2019). From Fyre Fest to Theranos, the Invisible Racial Subtext of Raising Capital [Op-Ed]. https://www.colorlines.com/articles/fyre-fest-theranos-invisible-racial-subtext-raising-capital-op-ed, 2-15.
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