Businesses owned by women of color have experienced unprecedented growth over the past two decades. This research, based on national data and a series of interviews with minority women business owners, presents a summary of business owners’ motivation, challenges, support, and financial trends.
The number of women-owned businesses is rapidly growing. Amidst these increases, Black women have become one of the fastest-growing segments of entrepreneurs in the country. This work explores the many challenges and opportunities faced by Black women entrepreneurs.
Past & Present Conditions of Black Women’s Business Ownership
A) As of 2012, Black women entrepreneurs owned approximately 1,525,494 businesses across the United States and composed almost 58.9% of all Black business owners.
B) Among all businesses nationally, those owned by Black women have average sales per business of $28,000 compared to $768,000 for those owned by white men.
C) Minority-owned-women firms struggle with growth, regardless of their income status, capitalization, and hiring needed to scale and expand.
Latinx women are some of the fastest-growing entrepreneur segments in business today. While still being underrepresented as entrepreneurs, this research shows the challenges and overcomings that Latinx women have faced.
A) The number of Latinx women entrepreneurs grew at a faster rate than any other group – 137% between 2007 and 2016.
B) The United States Census Bureau projected the number of Latinx women to nearly double by 2050 and for Latinx people to become the number one minority group in the United States. The growth rate in the number of Latinx women-owned businesses is expected to continue to surge.
C) If revenues generated by Latinx women-owned businesses were matched to those currently generated by other women-owned businesses, they could add $155 billion in revenues and create 80,000 new jobs to the U.S. economy.
Military veteran women are some of the fastest-growing entrepreneur segments in business today. While still being underrepresented as entrepreneurs, this research shows the challenges and overcomings that veteran women have faced.
A) Among all privately held firms, 15.4% of women-owned veteran firms are Black or African American compared to 6.8% of veteran men-owned firms, and 14.9% of veteran women-owned firms are Hispanic compared to 11.5% of veteran men-owned firms.
B) The growth of this population has exceeded any other demographic segment of the entrepreneurial economy. For every dollar that a veteran man makes in his business, a veteran woman makes just 7 cents in hers.
C) As of 2012, veteran women-owned businesses accounted for 383,302, or 3.9% of the 10 million women-owned firms in this country. Veteran women-owned firms increased 294.7% in number from 2007 to 2012.
It is statistically proven through data that mentors shape and directly impact the longevity of multicultural women’s careers and businesses. This research shows the critical importance of mentorship in the business and professional landscape for multicultural women for women of color.
A) 30% of women said their mentoring relationship was important to them.
B) 32% of minorities found mentoring extremely important to their success.
C) Mentees are five times more likely to be promoted than employees without mentoring.