“Small-business owners without connections still struggle to raise capital, said Tim Ferguson, founder and chairman of Next Street, an advisory firm that works with communities to help small businesses.
“There’s a whole ecosystem of support that exists in tech, biotech, life sciences that doesn’t exist for small businesses in underserved communities,” he said. And if there are no friends and families to help, getting started can be difficult.
Mr. Ferguson said he wished philanthropists would invest parts of their portfolio in loans to small businesses. “The philanthropists are doing really important work, but they could be doing so much more if they thought about their capital in a different way,” he said.”