Celebrating Diversity By Recognizing Black Women Owned Businesses

[Photo credit: Victoria Heath/Unsplash; Samuel Zeller/Unsplash; Lydia Dishman/FastCompany]

In 2019, women of color opened more businesses than any other demographic, according to a report by BusinessWire. While Black female entrepreneurship is rapidly growing, they're historically underfunded. Businesses with CEOs who are women of color get less than 1% of venture capitalist funding each year, according to Forbes.

What the data tells us: 

  • Women of color account for 89% (1,625) of the new businesses opened every day in 2019. This number has grown faster than the overall rate of new women-owned businesses in the past five years—21% versus 43%. The number of firms owned by African-American women grew even faster, at 50%. This is despite the fact that revenue is decreasing. The average declined 3% from $67,800 in 2014 to $65,800 in 2019.
  • According to a report by American Express, since 2007, the number of firms owned by African-American women has grown by 164%. Nearly half of women-owned businesses in the United States, or 44%, are controlled by minority women, according to Census data and projections by research firm Womenable. That’s up from 20% in 1997.
  • Minority women are more likely to have a side hustle. Over the last five years, the number of women with side hustles has increased to 39%, compared to a 21% average rate of entrepreneurship. Among minority women, it’s even higher: 65% compared to 32%, respectively.
  • These entrepreneurial ventures are concentrated in three sectors: service businesses like hair and nail salons and pet care; healthcare and social assistance; and professional/technical services like lawyers and bookkeepers.

As we celebrate diversity and inclusion, we encourage you to check out the list below of various articles recognizing Black female-owned businesses and ways to support them.

Resources to continue celebrating diversity:

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