Black Women Business Owners Outpace All Other Startups Six Times National Average
Betting on black women to grow America’s economy
Black women are the fastest-growing entrepreneurs in the nation, starting businesses at six times the national average.
Despite such numbers, African American female entrepreneurs start their ventures with less funding then men. They also receive less money from private investors. In 2014, 36% of startups pitching to angels were women-led and 15% of these secured funding, while 24% of firms presenting were minority-led and of these 16% received angel investment, according to the Center for Venture Research at the University of New Hampshire.
In addition to access to capital, access to influential networks and mentors are challenges facing women entrepreneurs in growing their businesses.
“One of the most remarkable entrepreneurial trends in recent years is the phenomenal growth among black women. The number of firms skyrocketed. And employment and receipts are increasing too, but not nearly at the same rate. There’s a lot more to this story, and we’re excited to explore these important questions,” stated Amanda Brown, executive director, National Women’s Business Council.
BY THE NUMBERS
30% of all U.S. businesses women now own
14% of all U.S. businesses controlled by black women
9.4 M Total number of firms owned by women
1.3 M Total number of firms owned by black women
297,500 Workers employed by black women-owned firms
$52.6 B Revenues generated by black women-owned firms
Source: The 2015 State of Women Owned Businesses Report
I hope you enjoyed this article by Black Enterprise Magazine. The number’s are adding up for Women Entrepreneurs, specifically for African American Women entrepreneurs.