Despite financial challenges, Black women entrepreneurs have been driving business formation during the last few years. The recently released 2024 Wells Fargo Impact of Women-Owned Business Report sheds light on our remarkable achievements and ongoing challenges.
Revenue Growth: Black women-owned businesses have generated a combined revenue of $98.3 billion between 2019 and 2023. Our businesses grew to nearly 2.1 million, representing about 15% of all women-owned businesses. This impressive growth outpaced men-owned businesses by almost twice the rate.
Majority Share: Black women’s businesses were the only women’s demographic with a greater-than-majority share of businesses owned (52.1%) compared to their male peers; highlighting our resilience and determination.
Pandemic Resilience: Despite being hit harder by pandemic lockdowns due to presence in industries like restaurants and retail, Black women entrepreneurs rebounded better than during the 2008 financial crisis. Revenues rose nearly 33% to $47,300 in 2023, compared to all women-owned businesses’ 11.2% rise to $192,600.
However, challenges persist. Black women business owners face obstacles in raising enough capital. Black women businesses are smaller and less profitable, which limits financial resources. While they grew revenue by nearly 50%, they still lag behind white men-owned businesses, which generated nearly 16 times more revenue.
The report also underscores the need for addressing the racial wealth gap and providing greater support and resources to Black women entrepreneurs. Limited access to capital can hinder business growth, creating operational challenges and cash flow issues.
So, as we prepare to celebrate National Small Business Week, let us remember to celebrate Black women business achievements AND advocate for equitable opportunities and resources to empower Black women entrepreneurs. 💪🏾🚀
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