Black female entrepreneurs are on the rise and statistic figures are showing it.
From how much they earn, to how many of them are starting a new business compared to white men and women, as well as black men, statistics can show us every detail.
So, let’s dig in deeper and find out!
Key Black Female Entrepreneurs Statistics (Editor’s Pick)
- Black women own 2.7 million US businesses.
- Black female entrepreneurs earn $24,000 average revenue.
- Less than 4% of startups are founded by black women entrepreneurs.
10 Black Female Entrepreneurs Statistics
1. In the US, 2.7 million businesses are owned by black females.
According to black female entrepreneurs 2019 statistics data from American Express, there are 2.7 million black female-owned businesses in the United States. Moreover, 42% of new women-owned businesses in the US are started by black women.
Source: American Express
2. Just under one in two black businesses owners in the US are women.
According to Guidant Financial black female entrepreneurs statistics 2021, 46% of black business owners are women. In comparison, this number is 53% higher than white small business entrepreneurs.
Source: Guidant Financial
3. Companies with black female owners grew 50% from 2014 to 2019.
According to data from the U.S. Census Bureau, companies with black female owners grew 67% between 2007 and 2012. In comparison, the growth for all-women businesses was 27%, and 13% for white women. Furthermore, between 2014 and 2019, they grew by 50%.
Source: U.S. Census Bureau
4. Just under two in 10 black women (17%) are in the process of starting a new business.
According to Harvard Business Review, 17% of black women were in the process of starting a new business in 2021. In comparison, so were 10% of white women and 15% of white men. However, only 3% of black female entrepreneurs continue to run a mature business afterward.
Source: Harvard Business Review
5. Black female entrepreneurs earn $24,000 average revenue.
According to 2019 data from American Express, black female entrepreneurs earn $24,000 on average. For comparison, all-women businesses earn $142,900 on average. In conclusion, there is still a big discrepancy in earnings based on the race and ethnicity of female entrepreneurs.
Source: American Express
6. 21% of all women-owned businesses in the US are run by black female entrepreneurs.
According to the 2019 State of Women-Owned Business, over 12 million American businesses are run by women. Out of them, 21%, or 2.7 million businesses, are run by black women.
Source: American Express
7. Between 1997 and 2105, African American female-owned businesses grew 322%.
According to a report in Fortune Magazine in 2015, African American businesses owned by women have grown 322% since 1997. Based on this figure, black women entrepreneurs are the highest-growing out of all entrepreneur groups in the United States.
Source: Fortune
8. Black women start less than 4% of startups.
According to a report from 2018, black women found less than 4% of startups. However, the number has doubled since 2016, when it was less than 2%. Nearly half of those are founded in California or New York.
Source: Project Diane
9. 61% of black women entrepreneurs self-fund their businesses.
More than six in 10 (61%) black female entrepreneurs self-fund their ventures, according to Babson. Furthermore, only 29% of black women entrepreneurs come from households with an income higher than $75,000.
Source: Babson
10. Black US women are starting a business at six times the national average.
In the United States, black women are leading in opening businesses, starting businesses at six times the national average. Moreover, they make up for 45% of all minority women and women of color enterprises.
Source: Office of Advocacy
Final Verdict
To sum everything up, black female entrepreneurship is reporting record heights, but there is still a long way to go. While they are starting the biggest share of new businesses in the US, they need to go a step further to ensure they can run the business for a longer time. Moreover, entrepreneurs statistics can teach us a difference in female, male, and minority entrepreneurs statistics. Furthermore, we can also compare black female entrepreneurs statistics with female entrepreneurs statistics.
