As a woman and parent, it’s disheartening to see the media fixating on whether a woman can actually break through the national barriers and win the presidency. We currently have two formidable female candidates on the campaign trail, yet the question lingers—why do we still need to prove our capability to lead?
It’s about time we shift the focus to the incredible women who are redefining success and outperforming their male peers. Particularly, we need to highlight the remarkable achievements of women of color, who are making significant strides in the business arena.
Recent statistics reveal that female entrepreneurs are establishing an average of 1,817 new businesses daily across the United States, resulting in approximately 663,205 new companies annually. Notably, women of color account for 89% of female startup founders, a figure that has seen substantial growth over the last five years. Today, female-led enterprises represent 42% of nearly 13 million newly established companies in the U.S., largely due to the groundbreaking efforts of Black women.
This surge in entrepreneurship can be attributed to advancements in education and economic opportunities. However, women from all backgrounds have been gradually stepping into leadership roles for some time. According to Mia Rodriguez from the U.S. Small Business Administration, “Women have been taking control, frankly, for centuries. But now we’re talking about it.”
Moreover, discussions surrounding the challenges faced by women of color in their entrepreneurial journeys are becoming increasingly vital. The unfortunate reality is that men continue to receive the majority of funding necessary to launch new ventures. In fact, women were awarded a mere 2.8% of all venture capital funding available to U.S.-based entrepreneurs last year. Thankfully, there is a shift occurring, with more female-focused funds emerging to empower women of color in the business landscape.
Access to capital remains one of the most daunting obstacles for Black female entrepreneurs. Esme Carter, founder of the innovative shopping app Trendify, emphasizes the loneliness of entrepreneurship within minority communities. “There’s this notion that we don’t exist,” she explains. In response to the lack of representation, she created Black Women Innovate, a nationwide initiative designed to support and uplift Black women in launching their own businesses.
In addition to financial hurdles, many women of color often juggle side hustles to afford the investment and time needed to build their companies. Recent data indicates that 39% of women have side jobs, compared to an average entrepreneurship rate of 21%. Among minority women, that figure jumps to 65%.
So, what keeps women of color from securing the financial backing they need? Natalie Green, founder of EmpowerHer, asserts that a lack of relatability plays a significant role. “Investors tend to connect with those who look like them, and unfortunately, many in positions of power struggle to relate to Black women,” she explains.
Further complicating matters, racial bias continues to plague female startup founders. A study by the Ewing Marion Kauffman Foundation revealed that first-time Black business owners receive nearly three times less overall funding than their white counterparts and are three times less likely to get their loan applications approved.
It’s also worth noting that over half of female business founders previously worked in corporate settings, many leaving due to dissatisfaction with those environments. Women of color often experience heightened workplace harassment and are held to stricter standards than their white male colleagues. They frequently lack the support and encouragement needed for career advancement.
Despite these significant challenges, women of color are breaking through barriers that have long been deemed unbreakable. Whether it’s the systemic issues at play or the biases they face, women of all backgrounds are pushing back against adversity. They are making invaluable contributions to our economy and society and deserve the recognition and support they have earned.
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Summary:
Black women are leading a surge in entrepreneurship, with a notable increase in female-led businesses. Despite facing significant barriers such as lack of funding and racial bias, they continue to innovate and break through systemic challenges, contributing immensely to the economy.