Dr. Velma Trayham on why Black businesses fail

The Black Chamber of Arizona CEO shares insights on closing the wealth gap, building sustainable businesses, and the shift happening for women in entrepreneurship
Dr. Velma Trayham leads two groundbreaking ventures that are reshaping how Black Americans access wealth and housing. As President and CEO of the Black Chamber of Arizona, she oversees one of the country’s largest and most influential Black business chambers. She also founded HomeAccess America, the first Black-owned modular housing manufacturer in the United States.
A best-selling author and Presidential Lifetime Achievement Award recipient, Trayham brings a unique perspective to entrepreneurship, having grown up in poverty with a mother who had her at 14. Today, she serves on 21 boards and advises corporations and government entities nationwide on economic empowerment strategies.
Tell us about the Black Chamber of Arizona. What’s its mission and vision?
The Black Chamber of Arizona is a 27-year advocacy organization that supports small businesses across the state. We govern 27 counties and provide access to resources and technical assistance for contracting opportunities. We are the only chamber in the country that has a focus on youth development, increasing entrepreneurial impact and workforce readiness with youth. We’re also the only chamber in the country with a program focused on justice-impacted individuals.
I’ve been in this role now for almost two years. We are one of the most innovative chambers in the country by way of how we’re helping entrepreneurs to become employer firms. An employer firm is an entrepreneur or a small business owner that creates job opportunities in their local communities.We don’t operate like a traditional chamber. We have KPIs that we measure our success upon. Data shows that 8 out of 10 small businesses fail in the first two years. One of the things that I focus on is sustainability and making sure that businesses have a very strong, viable model. If a business is solving problems, and they’ve done the proper research, they can be successful regardless of who’s in the White House or the economic climate.
What are some of the biggest barriers you’ve faced while working to close the racial wealth gap?
When I think about closing the racial wealth gap, obviously a lot of things are systemic. If we’re going to close the racial wealth gap, we’re going to have to do that by way of public and private partnerships, being able to partner with corporations, banks, universities and economic development agencies.
The barrier is that it’s not something that we learn in school. My knowledge in this space and the success that I’ve had in bringing together public and private organizations and being the bridge to community directly impacts small businesses. One of the barriers is knowledge, really having the knowledge and the expertise to be able to bridge the gap.
What were you trying to solve with HomeAccess America?
Right now, we are 7 million homes short in the United States alone. People are priced out of their homes. They cannot afford to live close to where they work. If we’re not innovating, if we’re not creating solutions, then there’s no way that we’re going to be able to collectively sustain housing and economic mobility.
HomeAccess America is focused on workforce housing and affordable housing. This product is currently in over 100 different countries. We hold the exclusive manufacturing agreement for the United States of America. The product is created in a factory and assembled on site. No construction. It will outlive a traditional build because it is concrete and steel beams.
I know that oftentimes when we hear modular, we think of some low-grade something. But no, this is high quality, it’s sustainable, it’s solving a problem, and it’s innovative. I read an article not too long ago that said 40% of Fortune 500 companies over the past 10 years has been displaced due to disruptive business models.
Money follows solutions to problems. This leads me to my next point about poverty. Poverty is a state of mind. My mom had me at the age of 14, and I decided that my end did not have to look like my beginning. I was determined to solve a lot of problems so that I could break myself out of poverty. I believe my life purpose is helping people to rise above poverty through empowered entrepreneurship.
Photo courtesy of Dr. Velma Trayham
You’re sharing the stage with Pinky Cole at The Shift on December 13. What will you be discussing?
Pinky Cole is incredible. I love what she’s done with Slutty Vegan. What we are going to be talking about is The Shift. I believe that there is a shift happening right now, and if women do not step up and use their voice and understand their collective power, we’re going to be left behind.
We’re going to talk about how we’ve built multimillion-dollar companies. We’re going to share strategies on how women can take their lives to the next level. We’re going to share business tips, executive presence tips and purpose-driven leadership tips. These women will be able to walk away with a solid blueprint on how they will go into 2026 with this information. It should not just be information, but it should be impartation for transformation.
A lot of women are afraid. They’re afraid to negotiate their salaries. They’re afraid to share what their value is. They’re afraid to have a voice. This is the time, this is the shift. Women will leave empowered, inspired and with practical next steps.
What are some common mistakes Black women make when starting up a business?
One of the mistakes that Black women make when they start a business is they start a business based on something they like or want to see. I believe that we should start businesses based on problems that we can solve. We need to identify problems to solve. We need to do the proper market research, and we need to create a strong business model.
Most Black business owners and people of color don’t have a lot of resources. I grew up poor. I didn’t have billionaires and millionaires that talked to me about creating wealth. This is why I think the work that I’m doing is so very important, because now I can help other people to mitigate their risk. I’ve helped hundreds, maybe thousands, of entrepreneurs across the country to build scalable business models. Some of these businesses have gone on to sell their businesses. Now they’re operating in generational wealth.
People don’t put value on the problem that they solve. They’re afraid to say, “Hey, I charge $25,000 and up for consultation.” People are not confident in their value proposition. That’s a huge barrier.
The other challenge is we tend to operate in silos. We need to partner with others. Airlines are merging together. Transportation companies are merging together. Government agencies are merging together. Banks are merging. There is no way you’re going to have the capacity to build something that is going to be scalable if you’re not partnering. The reason that I’m able to run multiple companies is because I create opportunities for other people. I want to solve problems, and I know that takes strategic partnerships.
The Black Chamber of Arizona is celebrating its 27th anniversary with the Pinnacle Pathways Gala and Business Awards. Can you tell us about this event?
I am seeing registrations coming through from people in California, Nevada, Texas and Colorado. When I think about Arizona’s economic climate, it’s a beautiful state. There’s a lot happening from an economic standpoint. There are large companies and small businesses expanding here.
We have over 25 corporate partners. Our presenting partners are Arizona State University, Bank of America and APS, which is one of the largest utility companies in Arizona. We have small businesses that are being honored by way of the work that they’re doing in being employer firms and creating job opportunities.
People say it’s less than 5% Blacks in the entire state of Arizona. We’re working to change that. We’re working to show not just Arizona, but people in the United States that Arizona is very diverse. There is a rich culture here and it’s thriving. The Annual Pinnacle Pathways Gala is about bringing leaders together.
Photo courtesy of Dr. Velma Trayham

Source link