Despite the lack of capital, Black women are still the fastest growing group of entrepreneurs in the United States. According to a study by the Harvard Business Review, 17% of Black women are in the process of starting or running a business and more likely to start a business in comparison to white men.
Before we cheer, the numbers get dismal. Despite this fact, only 3% of Black women run mature businesses. While the drop off can occur for several reasons including the type of business started as well as racial and gender disparities, 61% of Black, women owned businesses are self funded.
When businesses don’t have access to capital it becomes difficult to grow and scale.
If you are a Black woman and have a business and feel at the end of your financial runway, you are not alone. Take a moment to assess your business—is your business model profitable? Are there ways for you to cut costs? Can you add an additional income stream into your company? Have you reached out to fellow business owners for help and advice? If the source of your problem is mainly a funding issue, then keep reading.