When it comes to Business, Black Women are starting businesses at an astronomical rate, According to the Center for American Progress, Black women are driving America’s entrepreneurship boom—starting six times more businesses than average and creating 1.4 million jobs. however, they are usually in the retail and service industries and earn less revenue, remain smaller.
Although the rate of business ownership continues to rise in communities of Color, there is still an unequal distribution of annual incomes and business success for women of color. A report published by the Georgia Budget and Policy Institute reported that although women of color own more businesses than white women in Georgia, their revenues trail their white counterparts.
The pandemic has caused another rippling negative impact for minorities and women owned businesses. Especially for businesses that are already located in communities of color seeking capital to support and sustain their businesses. Overall, the shutdowns and economic situation are causing a hardship for small business owners that will result in an increase in closures on a national level.
Over the last two years corporations have made major announcements and commitments to invest in black owned businesses, especially during Coved. However, the philanthropic dollars are still limited for organizations created and led by women of color. Also, groups that have not been in the trenches, invested in the work are capitalizing from marketing initiatives that now focus on “Women of Color”.
As a nonprofit organization, supporting women in business, we are continually faced with the harsh realities of funding. Nonprofit organizations founded by people of color receive less funding. A study from May 2020 found that organizations led by people of color receive less funding, with more strings attached, than those that are white-led. For organizations led by Black women, the gap is even larger.
This is a critical time for people of color to be engaged, encouraged to lead projects and initiatives that focus on challenges for Black Indigenous Women of Color (BIWOC). It is extremely important to empower women to support each other in business and to work collectively to tackle solutions.
The real support for black women is to invest in organizations and projects founded by women of color. Supporting the important work required to address the economic, market, sociocultural, and institutional barriers for women of color. Through our work at WEOP, we can directly influence other women to leadership, civic engagement and community involvement. Historically, we come from a long line of women trailblazers, like Harriet Tubman, Rosa Parks, and we can continue making history.
With a recession looming, impact of the pandemic, our communities are being hit hardest by today’s challenges. Our survival is on the line. And as women of color, we understand the barriers firsthand and must prepare to meet the challenges. If we can’t save ourselves, we can’t expect others to come in and help us.
