Thoughts on Financial Literacy Explained through the Experiences of a New, Immigrant Small Business Owner

By Josaline Cuesta, California Program Director, Small Business Majority & IEBJ Content Contributor

Women entrepreneurs have driven new business growth and job creation for the past two decades. And despite having to navigate a shecession in 2020, women persisted. However, despite their persistence, this community continues to face unique challenges in accessing capital and connecting with the right financial networks. As such, Small Business Majority has partnered with the Women’s Economic Ventures and FOUND/LA on a Back to Basics Cohort Series developed by women and geared towards better supporting women business owners to grow and thrive in the face of financial challenges.

During Financial Literacy Month, we implore women entrepreneurs to check out this interactive cohort series that will give small employers the tools they need to take charge and understand their finances.

Alma Beaty is a real-life example of an entrepreneur working to take charge of her financial future, overcome barriers and pursue her American dream. Alma is based in the southern California area and owns “Relat-Able” – an online boutique with merchandise geared toward supporting: life stages, living with disability/disabilities, hanging out with family/friends, overcoming adversity, dating, you know, Relat-Able life stuff. Alma is not a seasoned business owner with staff. She started her business two years ago, but found the courage to go public in December 2022. She is a self-employed immigrant who is also deaf. But, like many innovative entrepreneurs, she had an idea(s) and strived to see it to fruition, working through the nuances of accessing and managing capital with limited resources. Through five short questions, Alma shares advice on what she has done to strengthen her financial wellness.

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Why is financial literacy important for small business owners? “It teaches us to not only make wise decisions on what we spend/invest in (regardless of the industry we are in), but it also helps us to calculate our wins and losses. Thereby helping us see whether or not a business is profitable.”

What have you done recently to strengthen your long-term financial plan? “I have been allowing myself to get into the habit of making spreadsheets. It felt weird at first, like in a mature-responsible kind of way. But in a fun and positive way as well.”

Which do you find easiest to obtain and manage? Business credit cards or small business loans from a traditional bank? “If we can be responsible with it, and we should, business credit cards will quickly increase our business credit and make it much easier for banks and lenders if we ever need to apply for a business loan. But ask me again six months from now. My answer may change depending on how much I have in the bank.”

What was the most significant financial mistake you made when just starting? “Spending so much money on things to get Relat-Able started only to realize I didn’t need all the stuff I bought later. And hiring graphic designers, only to realize these are things I could do myself. But despite realizing later that I could do graphic designing on my own, I didn’t regret hiring these designers. If anything, it taught me the importance of patience. And if I were ever to hire a graphic designer(s) again (and I will), it would be done with intention.”

Have you found the “Back to Basics” series helpful? Can you share another “go-to” financial literacy resource? “I find the Back to Basics series to be extremely helpful! I can’t say this enough. Being able to sit at a table (virtually) and have access to a sign language interpreter with other women to learn about financial literacy taught by women is the kind of empowHERment we (women and young girls) will always need. In honor of Women’s History Month, I would love to give a shout-out to my other go-to financial literacy resources. Such as: Melody Hobson, Dash Kennedy, and Tori Dunlap.