More Women of Color are Becoming Entrepreneurs

A new report by the Center for American Progress has shown that women of color are a major driving force in the United States economy by virtue of entrepreneurship. Women of color own about one-third of all women-owned firms in the U.S. Between 1997 and 2013, the number of female-owned firms and businesses in the U.S. grew by 59%, Black women-owned businesses grew by 258%, the highest of any racial group. 

• Black women-owned businesses grew by 258 percent. 
• Latina women-owned businesses grew by 180 percent. 
• Asian American women-owned businesses grew by 156 percent. 
• Native American and Alaska Native women-owned businesses grew by 108 percent. 
• Native Hawaiian and Pacific Islander women-owned businesses grew by 216 percent.

This increase in entrepreneurship has been attributed to inequalities and challenges faced by women of color in the traditional workplace. Some of these challenges include limited access to mentors, exclusion from elite networks, and gender wage gap. In 2012, Black women made 64 percent of their white male counterparts’ wages, compared to Latino women (53%), Asian women (87%), and White women (78%).

While there has been major growth and success experienced by Black women in entrepreneurship, challenges still remain. Almost half of all Black women business owners reported facing challenges in trying to obtain business financing. Research has shown that women are less likely to receive loans compared to their male counterparts. Also, minority-owned businesses encounter difficulties in receiving loans from financial institutions, compared to white-owned business. This puts Black women business owners in an extremely difficult and daunting predicament with being both a woman and a racial minority. Reducing prejudices and inequalities, especially in the financial sector, will help foster a successful and fruitful environment for Black women in the entrepreneurship sector.

I say that one can find ways to bootstrap their businesses. 
Sell items on ebay, work while building your business until you can let the job go. 
Invest in money making opportunities to fuel your business. Reach out to family for a loan.