Meet the fastest-growing group of entrepreneurs in America: Black women. February is Black History Month, so it’s an especially opportune time to learn a little more about this segment of women in business.

According to the American Express State of Women-Owned Businesses Report, Black females represent 42% of all women who started businesses between 2014-2019 and 36% of all Black employers. Black women are more likely to own their own businesses than at any time in U.S. history – and the numbers keep rising.

The trend has continued post-pandemic. A 2023 Wells Fargo Impact of Women-Owned Businesses Report found that 2.1 million Black woman-owned businesses employing 528,000 people and generating $98.3 billion in revenue exist in the U.S. Black women are reentering the workforce after raising children, turning hobbies or side-hustles into for-profit ventures, and/or trading in corporate titles for more flexible, innovative consulting roles. Some are blazing new trails for race and gender by launching their BIPOC, female-owned businesses in industries traditionally dominated by male CEOs. The residual impact is creating an expanded, supportive, and more diverse ecosystem in these types of industries.

For example, Leslie Frelow, who founded the online store and subscription company The Wine Concierge after directing a non-profit agency in Washington, D.C., did so in spite of the fact that less than 1 percent of US-based wineries are Black-owned. According to her CNBC.com profile, Leslie’s growing company is now helping to support sommeliers, farmers, and winemakers of color.

And while Black female entrepreneurship has made waves recently for trending upward, it’s not exactly a novel concept. Littie Brown, president and co-owner of SpeedPro Marietta, who with her partner Karen Brown, became the first Black women business owners in the SpeedPro franchise in 2013, overcame common start-up challenges to grow into a “mature” business (defined as those surviving past 5 years). This month, SpeedPro Marietta proudly celebrated its 11th anniversary.

Littie and Karen count blue chip companies, like Lockheed Martin and Kaiser Permanente, and major league sports teams, like the Atlanta Hawks and Atlanta Braves, as customers, but their work extends beyond the corporate structure to educational and community endeavors where, like Leslie, they are elevating the face of diversity in an industry in which most companies are led by men. Case in point, Littie is currently the president of the PIAG trade association.

Yet, despite standout examples like the women above, it’s important to not gloss over the bumps in the road facing Black women business start ups. A harder look at the numbers tells an underlying story of challenges, but at the same offers a hopeful glimpse into possible solutions that can make this demographic’s entrepreneurial growth more meaningful in the long run.

Consider the following:

  • Only 3% of Black woman-owned companies are considered “mature businesses,” defined as those surviving past 5 years.
  • Black woman entrepreneurs earn an average of $24,000 annually, as compared to $142,900 annually among all women-owned businesses.
  • 61% of Black women entrepreneurs start their companies in fields like health, education, and retail. These sectors are typically defined by low margins and high competition, and are notoriously difficult to sustain long-term.

The most glaring challenge facing Black women entrepreneurs appears to be lack of access to capital. J.P. Morgan.com reports that 61% of Black women self-fund the launch of their own businesses. The financial services giant further reports that this demographic is rejected for business financing at a rate three times higher than White business owners; in 2020. Only 2% receive venture capital funding, according to TechCrunch.

Fortunately, both the private and non-profit sectors are taking note of the entrepreneurial spirit of Black women in America, and are making strides to address financial pitfalls that damper enthusiasm and depress solid revenue gains. For instance, JPMorgan Chase has committed $30 billion over five years to provide increased lending and technical assistance to traditionally underserved communities, like Black females, in an attempt to bolster economic opportunity.

The Wells Fargo Foundation is funding a mentoring program, Milestone Circles, for women business owners that is offered by the Nasdaq Entrepreneurial Center. 86% of participants in the program identify as Black, African-American, and/or Afro-Caribbean.

And, as Black women continue on a path to transform their place in the entrepreneurial ecosystem, more grants and funding paths are becoming available. For BIPOC women in print or other sectors, Nerd Wallet has curated a list of options worth exploring.

Time will tell if the programs and services above succeed in elevating Black-owned women businesses, but it’s clear the desire on all sides is strong and the future state of Black female entrepreneurship looks brighter than ever.

Are you a BIPOC women working in the print and graphics communication industry? If so, Women in Print Alliance would love to hear from you. We’re on a mission to widen the circle of voices and faces in our industry and always welcome content contributors. Contact us here.