Black women in America share unique experiences as business owners, often grappling with systemic sexism and racism that result in significant challenges, including limited funding options. To shed light on these obstacles and offer guidance, we spoke with five successful Black female entrepreneurs who shared their journeys and provided valuable advice for others in similar positions.
1. Overcoming Funding Hurdles
Black women entrepreneurs often face substantial barriers when seeking financial support. According to a 2021 report from the Federal Reserve Banks, Black entrepreneurs, on average, complete more applications for financial assistance than any other group. Yet, they are half as likely to receive full approval for small business loans compared to their white counterparts.
One effective strategy to mitigate these funding challenges is to save money before reaching out to investors. Tiffany Griffin, who launched a scented-candle company with her husband, emphasized the importance of financial independence. Griffin’s business, which highlights the Black experience through culturally inspired scents and names, faced investor pushback due to its race-based product line. By saving capital before launching, Griffin and her husband were able to maintain their core values without compromising to secure funding.
“With financial stability comes freedom,” Griffin explained. “We’ve learned to plan meticulously and stick to our values.”
Lesson: Save money before launching your business to avoid reliance on investors who may demand compromises on your business values.
2. Knowing Your Worth
Janna M. Joyner, who founded the creative marketing agency Leap Innovative Group, shared her struggle with setting appropriate rates for her services. Initially, she underpriced her work due to a lack of confidence. However, observing her white counterparts’ confidence in pricing themselves higher, she sought mentorship and realized her worth.
“Our white counterparts are used to having capital and pricing themselves higher with confidence,” Joyner noted. “I realized if they could do it, so could I. I am confident in my expertise and worth the price I set.”
Joyner urged Black female entrepreneurs to research market rates and not take rejection personally. She stressed that a client’s unwillingness to pay is not a reflection of your value.
Lesson: Research the market to set appropriate rates and confidently stand by your worth.
3. Starting Small and Early
Britney Winters, who transitioned from a corporate career to founding Upgrade Boutique, a hair extension and wig company, emphasized the importance of selling products early. Limited funding options led her to set up a pop-up store where she sold out her stock in three hours. This initial success provided the capital and customer base needed to continue growing her business.
“We often want our ideas to be perfect before launching, but it’s crucial to work with what you have,” Winters said. “Starting small allows you to build and refine your business gradually.”
Lesson: Begin selling products early to generate capital and grow your customer base.
4. Networking for Success
LaTonya Story, founder of LPS Consulting PR, highlighted the power of networking in overcoming barriers. Despite starting out in a field dominated by white men, Story leveraged her networking skills to sign her first clients. Her persistence and assertiveness in reaching out to potential clients and mentors played a critical role in her success.
“My first opportunity came from calling a radio ad and volunteering for a public relations event,” Story recounted. “Networking allowed me to connect with professional athletes and secure my first paid client.”
Lesson: Actively network to gain clients and mentors, and don’t hesitate to reach out to people you want to work with.
5. Conducting Market Research
Genera Moore, founder of Motorparts Nation, emphasized the importance of market research in identifying business opportunities. After discovering a need for auto parts in Ghana, Moore leveraged her expertise in international trade to establish a successful distribution business. She found that being a Black woman could be an advantage in certain markets, as it allowed her to build trust and integrity with her clients.
“Conducting market research helped me identify a community in need and provided a foundation for my business,” Moore explained. “Black women reinvest in the community, which amplifies our impact.”
Lesson: Conduct thorough market research to find business opportunities and identify communities that need support.
6. The Importance of Mentorship
Mentorship is crucial for Black women in business, as it helps navigate challenges such as securing funding and accessing high-worth networks. Tiffany Griffin noted that mentorship provides valuable one-on-one advice and learning opportunities from those who have successfully managed similar struggles.
“Mentorship is vital because it combats inequalities and provides guidance,” Griffin said. “I have the responsibility to share what I know with other women.”
Janna M. Joyner also highlighted her commitment to hiring Black women out of college, providing a safe space for them to learn and grow without fear of mistakes harming their careers.
Lesson: Seek mentorship to gain insights and support from experienced entrepreneurs.
The Resilience of Black Female Entrepreneurs
Despite ongoing issues of racial inequality, Black women continue to demonstrate remarkable entrepreneurial spirit. According to a 2019 American Express report, Black women account for 42 percent of new women-owned businesses, although they represent only 14 percent of the entire female population. Between 2014 and 2019, Black women-owned businesses grew by 50 percent, the highest rate among all female demographics.
Education also plays a significant role in this trend. Black women pursue higher education at higher rates than other female minority groups, equipping them with the confidence and tools necessary to launch and operate their businesses.
