The Funding Crisis For Black Entrepreneurs, Part 3: Why Ecosystem Builders Are the Key to Lasting Change

Why Ecosystem Builders Are Critical for Black Entrepreneurs

1. They Strengthen Infrastructure That Outlasts Any Single Initiative

Too often, funding for Black entrepreneurs focuses on short-term programs, accelerator cohorts, and temporary interventions—none of which create lasting change if there’s no infrastructure to support entrepreneurs beyond those initiatives.

Ecosystem builders anchor this infrastructure. They work across sectors, ensuring that entrepreneurs don’t just receive support once, but have a continuous web of resources, mentorship, funding opportunities, and policy advocacy that evolves with them.

2. They Break Down Barriers and Open Doors to Capital

Many Black entrepreneurs don’t lack talent, vision, or work ethic—they lack access. They often operate outside of traditional funding pipelines, facing challenges such as:

• Lack of relationships with mainstream investors and lenders
• Limited awareness of available funding opportunities
• Institutional biases that create unnecessary hurdles

Ecosystem builders remove these roadblocks. They help entrepreneurs navigate complex financial landscapes, advocate for more equitable funding mechanisms, and hold funders accountable for inclusive investment practices. Without them, many Black entrepreneurs remain invisible to the systems that could support them.

3. They Foster Collaboration Instead of Competition

The current funding model often forces Black-led organizations into scarcity-driven competition, where they must fight over the same limited resources. This weakens the ecosystem as a whole.

Ecosystem builders create pathways for collaboration rather than competition. They bring together entrepreneurial support organizations (ESOs), business development providers, community leaders, and investors to build cohesive, well-connected networks that strengthen the ecosystem for everyone.

Rather than funding isolated initiatives, investing in ecosystem builders ensures that resources are coordinated, shared, and leveraged for maximum impact.

4. They Serve as Bridge Builders for Generative Conversations and Community Healing

Many ecosystem builders are entrepreneurs themselves and bring the lived cultural experience necessary to navigate complex conversations about race, economic trauma, and systemic harm. If properly equipped and supported, they can serve as facilitators for generative one-on-one or group conversations that address key issues such as:

• Historical and systemic economic harm
• The impact of past and present disinvestment
• Power dynamics that perpetuate exclusion
• Pathways to community healing and trust restoration

These conversations aren’t just theoretical—they lead to real progress. They foster stronger partnerships and create opportunities for Black entrepreneurs that wouldn’t otherwise exist. They are also often called on to help mitigate toxic power dynamics between organizations that can get in the way of centering the entrepreneur; these situations are all too common because Black organizations often find themselves in unhealthy competition for scarce resources. In the end, it is entrepreneurs that lose when organizations are unable to effectively work together.

Regardless of the source of the relational challenge, ecosystem builders are uniquely positioned to stand at the intersection of past harm and future opportunity, uniquely positioned to facilitate dialogue that unlocks new pathways to generative solutions. By investing in equipping and training ecosystem builders to take on this role, funders can help create a more inclusive, and transparent entrepreneurial ecosystem that faces challenging people dynamics head-on and leads by modeling a culture of healing.

Why Funders Overlook Ecosystem Builders (and Why That Must Change)

Despite their critical role, ecosystem builders are often unpaid, underfunded, or expected to do this work off the side of their desks.

Many funders still operate with a “direct-to-entrepreneur” mindset, assuming that putting money into businesses alone is enough. While direct investment is essential, without the infrastructure and guidance that ecosystem builders provide, that capital won’t reach its full potential.

Funders often struggle to quantify the impact of ecosystem builders because their work doesn’t fit neatly into traditional metrics. Unlike a startup that can report revenue growth, an ecosystem builder’s success is measured in the strength of networks, the quality of partnerships, and the long-term sustainability of entrepreneurial ecosystems.

But just because it’s harder to measure doesn’t mean it’s not valuable. In fact, it’s one of the smartest, most strategic investments funders can make.

When ecosystem builders are properly resourced, the results are undeniable. More Black entrepreneurs gain access to capital, mentorship, and growth opportunities. Entrepreneurial support organizations (ESOs) work together, rather than competing for scarce funding. Local economies benefit from stronger networks of Black-owned businesses. Generative conversations lead to trust restoration, stronger partnerships, and systemic change. Funders achieve greater, long-term impact with their investments.

By funding ecosystem builders, we’re not just supporting individual entrepreneurs—we’re strengthening the entire economic infrastructure that allows Black businesses to thrive.

What’s Next: A Call to Funders

If you’re funding Black entrepreneurs but haven’t prioritized investment in ecosystem builders, it’s time to ask:

• Who is holding the ecosystem together in the communities you serve?
• Are those individuals receiving the funding and support they need to sustain their work?
• Are you investing in long-term infrastructure, or just short-term initiatives?
• Are you supporting the bridge builders who can facilitate the difficult but necessary conversations that create lasting change?

One way to directly support ecosystem builders is to fund professional development and peer network memberships with entities such as Black Innovation Alliance and Startup Champions Network. These networks provide critical peer learning, mentorship, and leadership development that allow ecosystem builders to refine their strategies, expand their networks, and sustain their impact.

Another way is to fund ecosystem builders en masse by sponsoring or funding organizations that train and equip Black ecosystem builders, such as Forward Cities. Organizations like these provide the technical assistance, coaching, and infrastructure ecosystem builders need to be effective in their communities.

Ecosystem builders are the connective tissue that ensures entrepreneurial funding doesn’t just exist—it reaches the right people, at the right time, in the right ways. They are the key to lasting change.

Forward Cities is committed to championing ecosystem builders and ensuring they receive the investment they deserve. If you’re a funder or policymaker looking to make a deeper, more strategic impact, let’s talk.

Interested in learning more? Connect with us to explore how we can invest in ecosystem builders together.