Black Women Become Entrepreneurs 6 Times Faster Than National Average

11 comments
July 21, 2014 ‐ By Ann Brown
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Black women love doing business. No, it’s true. Black women are becoming entrepreneurs at six times the rate that the average American is. Women in general are going into business at a faster pace, but it is black women who are driving the entrepreneurial train.

“As more and more African-American women obtain higher degree levels, they’re more likely to start their own businesses because they feel that they are better prepared to do so,” said Bruce James, Dean of Business at Philander Smith College.

There are more than one million African-American female business owners in the U.S. today, reports THV11, an outstanding figure, especially when you consider that African-American women make up just 13 percent of the female population in the United States.

And despite a number of challenges unique to being a woman and/or African-American, black women are thriving as business owners. “The number of companies started by African American women grew nearly 258 percent from 1997 to 2013,” reports Center for American Progress. “The number of African American women-owned businesses in 2013 was estimated at 1.1 million, comprising 42 percent of businesses owned by women of color and 49 percent of all African American-owned businesses.” And black women are employing large numbers of workers. According to the Center for American Progress, African-American women-owned businesses employed 272,000 workers. They also generated $44.9 billion in revenue in 2013. And of the top 10 fastest-growing private firms owned by black entrepreneurs from 2009 to 2012, 27 percent were owned by black women.

Despite these gains, there are still several factors holding back black, female-owned businesses. Most firms owned by black women are sole proprietorships that generate less revenue on average than other women-owned businesses, or even companies owned by black men, reports The Grio.

“Eliminating the gaps between African-American women and others is an opportunity to improve the lives of these women and their families, but it is so much more,” Farah Ahmad of the Center for American Progress stated. “It is an opportunity to strengthen our workforce and purchasing power—and that’s good for the economy, which means that it’s good for everybody. But it will happen only if we choose to seize it.”

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  • Kristen

    So glad to hear this. My dream is to become an entrepreneur.

  • 9Boots

    Good job ladies! Keep it up! I predict within the next 10 years our rate will be 20 times the national average. A little birdie told me.

  • Youknowwhatiitis

    Myself included ;)

    • 9Boots

      Good for you!

  • Food4Thot

    And I bet those women are STILL opening their legs and getting pregnant by Pookie and Ray-Ray n’ nem.

    At the end of the day…..THEY’RE STILL IDIOTS NO MATTER HOW MANY DEGREES THEY ACQUIRE!

    • Guest444

      some broke unemployed livin off a woman child support payin nagga is all up in his feelings today. Dont hate on the sistas, bro. Get out there & get ur own. Stop being the typical broke assz Pookie, Ray Ray n’nem – go get an education, a job then go get ur own.

      • 1Val

        The idiot has a point.

        Black women unlike other races of women lack men capable of providing for them.

        So black women without men must earn a living for themselves.

        And black women will be left with Ray Ray and Pookie littering their dating pool.

        • 9Boots

          This is why I tell BW to fee BM. There are not enough pillars to hold the community of women.

    • Guestest

      That’s a really beautiful picture of your mother.

  • Marie Bano

    Please find out what business start up money there is locally in your area. Under Obama there is money out there to support black business. Congratulations to all the women that are contributing to the black economy.