Black women jumped full force into the micro business industry in 2023, according to a new report published by GoDaddy Venture Forward Nov. 28. In August, Venture Forward interviewed 6,000 small businesses across the US and UK for their 10th annual national survey and the report found that Black women have been dominating the micro business sector this year.
According to the survey, 15% of micro businesses in the US were owned by Black entrepreneurs and 68% of those businesses were owned by Black women. The study found a similar trend in the UK. Black entrepreneurs owned 5% of the micro business industry this year, and of those, 60% were owned by Black women.
Why is entrepreneurship so important for Black women?
Black women have been the fastest-growing demographic of entrepreneurs in the U.S. A 2021 study by JPMorgan Chase found that Black women-owned businesses grew 50% from 2014 to 2019. “Black females accounted for 42% of all women who opened a new business during that time and represented 36% of all Black employers,” the report noted.
Approximately 61% of Black female entrepreneurs started businesses in health, retail, education, government or social services.
For Black female entrepreneurs, starting a business can be a path to liberation and financial security. Black women are often underpaid and subjected to a number of micro-aggressions, racism and sexism in the workplace. As Kerry Mitchell Brown of Race Forward penned for a NewsOne piece in April, “No one wants to work within systems where they are undervalued and underpaid, especially Black women.”
Because of this, Black female business owners are plunging headfirst into the world of entrepreneurship to reclaim their time, protect their families and control their finances on their own terms, but that doesn’t come without a challenge.
Starting a business can be difficult for Black female entrepreneurs.
In 2023, micro business entrepreneurs faced a number of setbacks as they worked hard to get their companies up and running. Respondents, both men and women, said that access to financial capital, marketing tools and building their website were some of the biggest hurdles when starting their company.
Many Black woman-owned businesses often struggle to secure funding. According to JPMorgan’s 2021 report, “Black business owners who apply for funding have a rejection rate that is three times higher than that of white businesses.” Around 61% of Black women self-fund their startup capital.
While the statistic may seem gloomy, the risk could have a great reward for passionate entrepreneurs who remain committed to the grind of scaling their businesses.
According to GoDaddy Venture Forward’s latest survey, 29% of women and 38% of men in the US made over $100,000 or £180,000 annually from their micro business. In the UK, 27% of women and 34% of men earned $100,000 or £180,000 annually. Many of the micro businesses surveyed had fewer than 10 employees.
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Black Female-Owned Micro Businesses Soared In 2023, According To A New Survey was originally published on newsone.com
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