August is National Black Business Month, a time when Black women-owned businesses celebrate their significant presence, revenue growth, and development opportunities. According to a 2024 Wells Fargo Study, Black female entrepreneurs represent approximately 2.1 million businesses, making up 52.1% of all Black-owned enterprises. This group has emerged as the fastest-growing segment of entrepreneurs, driving cultural shifts and fostering diversity. Their business methods focus on increasing representation, access to capital, education, and narrowing the racial wealth gap.
Monica Ray, president of The Congress Heights Community Training and Development Corporation (CHCTDC), highlights the essential role of Black women in community building. She notes, “When you think about how to bridge the gap between how we build sustainable communities, we can’t leave Black women out of the conversation.”
During the COVID-19 pandemic, Black women-owned businesses saw a remarkable increase in average revenues, rising by 32.7% between 2019 and 2023, compared to an 11.2% growth for all women-owned businesses. Many entrepreneurs used the lockdown to pivot or expand into new ventures, allowing them to explore passions or secure steady incomes.
The Village Market: A Hub for Black Entrepreneurs
Dr. Lakeysha Hallmon, CEO and founder of the Village Market, has been a key figure in supporting Black entrepreneurs. The pandemic inspired her to delve deeper into the systemic challenges faced by Black business owners. On Meghan Houle’s “Pivot with Purpose” podcast, Hallmon shared her vision for creating a vibrant ecosystem that supports Black entrepreneurs with resources, mentorship, and customer relationships.
Hallmon began her outreach in 2016 with the Village Market, an Atlanta-based center for Black-owned companies. The Village Market offers opportunities through e-commerce, seasonal marketplaces, strategic alliances, and retail prospects. Hallmon’s multi-prong business model includes Our Village United and Elevate, a free 12-week incubator program providing professional insights on scaling businesses.
To date, Hallmon has generated $8.3 million in direct sales to Black businesses. She emphasizes the importance of active support, stating, “If you truly support something, you will put action behind it.”
The BLACKBONE Project: Building an Entrepreneurial Ecosystem
Monica Ray has been a strong advocate for Black women in entrepreneurship, initiating projects like the BLACKBONE Project. Launched in 2023, this initiative provides Black female founders with resources, support, and development opportunities. The program includes a 17-week incubator training that covers everything from ideation to securing capital and establishing support groups for collaboration.
The BLACKBONE Project has supported 175 businesses, with about 60 achieving significant growth. Ray emphasizes the power of community, stating, “We’ve created an ecosystem of Black women and founders who are able to talk to one another.”
However, Black entrepreneurs continue to face challenges, including limited access to financial aid. A McKinsey study revealed that less than 2% of venture capitalist dollars go to Black business owners, with even less funding for Black or Hispanic women-led companies. Despite these obstacles, innovators like Ray and Hallmon continue to drive positive change in underserved communities.
HBCUs: A Foundation for Future Entrepreneurs
Education and training are crucial components of many entrepreneurship initiatives. The Howard University and PNC National Center for Entrepreneurship exemplifies this focus. Established with a $16.8 million grant from PNC Bank, the center aims to create a national network across historically Black colleges and universities (HBCUs) to support Black entrepreneurship.
The center, along with regional hubs at Morgan State University, Clark Atlanta University, and Texas Southern University, fosters relationships with organizations that support Black entrepreneurs. Erin Horne McKinney, national executive director, underscores the importance of preparing youth for ownership, stating, “Our premise is that we won’t have a successful future if we don’t prepare our youth to own it.”
The center offers several programs, including the Faculty Fellowship Program, HBCU Startup Scholars, and the Entrepreneurship Education Innovation Grant Program. These initiatives provide financial support to HBCU students and faculty, aiming to strengthen the business network within the Black community.
Through data collection and diagnostic testing, the National Center for Entrepreneurship seeks to identify and address gaps within the industry, ensuring future generations of entrepreneurs are well-prepared and supported.
