Black women are driving America’s entrepreneurship boom—so why do their businesses earn less revenue, remain smaller, and have a higher failure rate?
earned by white women-owned businesses. Hispanic women’s companies make just 28 percent.
A history of social and racial inequalities means that women of color often operate at a disadvantage. For instance, they have less access to capital due to wealth disparities and lending discrimination. Women of color also have fewer mentorship and training opportunities, which also means they tend to have less social capital .
Let’s face it: A business cannot grow or scale without a variety of credit resources—especially if the business owner plans to pursue contracting opportunities. Entrepreneurs need a steady cash flow to keep their businesses operational and support the business through times of crisis.
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