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Women Who Launch

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Women, particularly women of color, are the fastest-growing demographic of entrepreneurs in the United States today. This trend has been particularly notable among African American women, who have been leading the surge in new business formations. Here are some key insights:

  1. High Growth Rate: Over the past five years, the number of businesses owned by African American women grew by 50%, which is the highest growth rate among all female demographics. Women of color now account for 89% of the new businesses opened each day.
  2. Revenue and Employment Impact: Women-owned businesses, especially those owned by women of color, generate significant revenue and employment. For example, minority female entrepreneurs contribute $422.5 billion in revenue to the economy.
  3. Challenges: Despite their rapid growth, women of color face significant challenges, particularly in accessing capital. Many rely on personal savings, credit cards, or support from family and friends to fund their businesses due to limited access to traditional financial resources.
  4. Economic Contribution: Black women-owned businesses have demonstrated resilience, especially during the COVID-19 pandemic. They saw a significant rebound with a 33% increase in revenue from 2019 to 2023, despite facing financial obstacles and higher closure rates compared to other groups.
  5. Motivations and Industries: Many women of color start businesses to achieve economic independence and to follow their entrepreneurial dreams, often as a response to limited professional progression opportunities in traditional workplaces. Their businesses are often concentrated in service industries such as healthcare, social assistance, and retail.

As a woman of color and entrepreneur myself, it’s good to know that I’m not alone. Women are at the forefront of entrepreneurial growth in the U.S., driving substantial economic contributions despite facing barriers. Our entrepreneurial spirit and resilience continue to reshape the business landscape and redefine what’s possible.

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