Black Women Are Starting Businesses in Droves

Black women are becoming entrepreneurs at a faster clip than any other demographic – and a chillier corporate world has a lot to do with it.

Take Erin Giddens.  She had long dreamed of becoming an entrepreneur—but not while she earned a steady paycheck in the corporate world.

Then came the layoff from her communications-associate role and a months long job search that went nowhere. By the time she decided to focus full time on her own video-production company last fall, she says, the move came down to this:

“Do I want to get back working in corporate, where they’re still going to have my career in their hands, or am I going to bet on myself?” she says. 

Guess what she did?  Read on about how she and many others like her are tired of the anxiety in corporate America and are creating their own destiny.

After all, that is why we started Escape From Corporate America July 7, 2004!  Check out that post. 

Black Women Shoulder Additional Burdens On Their Path to Success

Black women shoulder additional burdens beyond men on their path to success, especially in accessing venture capital funding, including networking gaps and less access to personal investment due to racial wealth gaps.

Alicia Sheares’ research on Black tech entrepreneurship in Atlanta and Silicon Valley identifies additional barriers faced by Black women in the field due to negative assumptions about their abilities, signals that they do not belong, sexual advances, and distractions relating to their appearance and attractiveness.

These challenges for Black women are distinct from those reported by Black men and by white women. 

For her presentation to the Clayman Institute, Sheares dug into her research on Black women.

Fasting Growing Group of Entrepreneurs: Black Woman-Owned Businesses

Although Black women make up less than 10% of the U.S. population, they’ve emerged as the fastest-growing group of entrepreneurs in the country. 

According to the Brookings Institution, between 2017 and 2020, the number of Black women-owned small businesses increased by nearly 20%, far exceeding the growth of women-owned businesses and Black-owned businesses overall. 

In this interview, Jean Chatzky is joined by Tiffany Dufu, President of the Tory Burch Foundation and author of Drop the Ball: Achieving More By Doing Less. Tiffany shares the best ways to support Black women-owned businesses right now.

Path to Liberation: Entrepreneurship

Many people celebrate the impressive volume of Black women launching and running businesses.

JPMorgan Chase found that “[t]he number of businesses owned by Black women grew 50% from 2014 to 2019, representing the highest growth rate of any female demographic. Black females accounted for 42% of all women who opened a new business during that time and represented 36% of all Black employers.”

But what is seldom discussed about black women entrepreneurs:  Why are they starting the businesses?

According to this article, black women are leaving workplaces in record numbers due to racism, sexism, and an inability to bridge pay disparities between white men and white women.

As the article states at the end:  "Our workplaces need seismic shifts in policy, structures and society – shifts that specifically see and center Black women. Companies should not assume what Black women need; they should engage with us to co-create self-determinate solutions. In other words, ask Black women what we need, and be prepared to offer it."

Black Women Entrepreneurs Give Their Best Startup Advice

These badass business owners featured in the article below are changing the game from skincare, to life coaching, to mental health-conscious apparel.

When Black women are still making 63 cents for every dollar a white man makes, it’s imperative that we support each other – whether that’s through a purchase, a referral, an Instagram follow, or a retweet. When one of us comes up, we all come up!

Here, five entrepreneurs are asked about their mission, and what it means to them to be a Black woman entrepreneur.  They also share  advice for the next class of melanated moguls.

Black Women Entrepreneur Excellence

The Women's Entrepreneur Leadership Lab (WELL) is a network of Black women business owners that facilitates peer-supported growth by fostering relationships that build community, collaboration, confidence, and capital.  It set out to address the lack of support Black women founders receive as entrepreneurs by banding together and creating a community to support each other.

Data illustrates how far funding needs to progress to support Black women, who accounted for 42% of net new women-owned businesses, while only being 14% of the female population from 2018-19, according to the 2019 State of Women-Owned Businesses Report, which analyzed U.S. Census Bureau data, and extrapolated forward based on Gross Domestic Product data.

Learn more to participate and recommend to others.