The number of employer businesses owned by black women has seen an increase from 2017 to 2020. They now account for a significant portion of all black-owned businesses. However, there is still work to be done, as women are not adequately represented in employer businesses, accounting for a relatively small percentage of the total share of owners. Women from various racial and ethnic backgrounds have different levels of business ownership. Asian American women are a significant presence among American women and female business owners. They also contribute to the overall number of business owners in the country.
Significant Growth
Business ownership among black women is experiencing significant growth, indicating a positive trend in the number of black women-owned employer businesses over the past few years. These trends reflect the increase in small and sole proprietorships owned by black and Latino or Hispanic women. These microbusinesses play a significant role in the small business landscape in the U.S. and have the potential to contribute to increased representation in employer businesses. It is important to create a supportive business environment for owners of businesses of color, particularly women, to foster the growth of their businesses.
Structural factors are the primary drivers of business ownership growth among black women, rather than a fair business environment. Black women-owned businesses tend to have a higher likelihood of being their first business venture. They are less likely to serve as their primary source of income compared to the national average. Black women were the group that initiated the highest number of healthcare businesses in 2020, surpassing other sectors such as professional, scientific, and technical services.
Reasons for Entrepreneurship
The motivations behind black women starting businesses are diverse, with structural challenges like limited job opportunities and a strong commitment to supporting local communities appearing to play significant roles. Black workers suffered significantly from job loss, primarily because they were more likely to work in frontline industries like the health care and service sectors. Black women business owners face unique challenges when it comes to accessing capital and financial support for starting a business. Black women business owners span a range of age groups, with a significant portion falling between 45-54 years old. Additionally, a small percentage, specifically 6.6%, are 34 years old or younger.
Many black women business owners have achieved advanced degrees, including master’s degrees. This suggests that black women face greater obstacles in starting their businesses, as they are unable to access the same level of economic support unless they acquire additional qualifications. However, it is worth noting the significant contribution of highly educated black women to developing new employer businesses. The economic and business environment has evolved for black women over the years, with an increase in the number of businesses owned by black women. The increase in employer businesses owned by black women may be influenced by factors related to the structure of the economy, rather than solely being a result of advancements in racial equity.
