MadameNoire Study Reveals Trends With Black Women And Entrepreneurship
Black women are becoming entrepreneurs at noteworthy rates, but running—and financing—a company isn’t easy. So how are so many women doing it?
We partnered with Civic Science to conduct the MadameNoire Financial Behavior Study by implementing a reader poll of more than 500 Black women to learn more about their money habits. Here are a few highlights regarding entrepreneurship:
- Approximately one-third of Black women polled are entrepreneurs.
- Individuals who made more than $150,000+ annually are most likely entrepreneurs.
- Individuals with a graduate degree are most likely entrepreneurs.
“Business ownership really opens the doors to unlimited earning potential,” says Tiffany ‘The Budgetnista’ Aliche. “Entrepreneurship shows women that they can (and should) unapologetically charge what they’re worth for their products, services and time. As this happens, they are better able to support themselves, support their families, and invest for the future.”
According to experts, it isn’t surprising that many six-figure earners are also business owners. “More women of color are attuned to the slights of being passed over for deserved promotions and race/gender-based pay gaps. Entrepreneurship is a way to remove some of those limits and provides an opportunity to follow one’s own path,” says Aliche. While education (formal and informal) and money are great resources for budding businesswomen, history proves you don’t need either to start a small biz.
“You don’t have to be rolling in dough, but running out of cash is a big reason many small businesses fail,” says Aliche. “If you know your money is a little funny, find a way to scale back your plans a bit and research local start-up assistance programs that your business may be eligible for.” Having a viable business plan that anticipates your needs can also help level the playing field.
The reality is that many Black female entrepreneurs won’t have the complete cocktail of privilege, such as degrees, extra savings, and experienced mentors, to rely on when launching a business. That doesn’t mean you shouldn’t go for it. Instead, tap into the resource you have to get closer to what you want.
Regardless of resources, experts suggest that aspiring entrepreneurs create a solid business plan before taking the leap.
Interested in learning more about the financial habits of Black women? You can find additional study highlights here.