Photo by Godisable Jacob: https://www.pexels.com/photo/photo-of-woman-wearing-yellow-floral-top-871495/
Getting into new business ventures for Black Business Women isn’t an easy task. During the COVID pandemic, when thousands of businesses were unraveling, they received the least support from the Government. Entrepreneurship, in general, is highly beneficial for the economy, and when you expand it to marginalized groups like Black women, the benefits multiply exponentially.
Today, black people make up around 14.2% of the US population, but own just 2.2% of 6 million businesses in the country. Evidence shows that the economy can turn faster than expected by putting black women first.
The Fastest Growing Entrepreneurial Group
You might be surprised to know that Black Women Entrepreneurs are the most rapidly expanding group of women in the business sector. The hurdles in their path have become blessings, as they have discovered niches and markets that value their products and services. Black females today own 21% or 2.7 million of all female-owned businesses in the United States.
A Strong Consumer Core
Consumers drive the economy, and Black women are at the forefront of this landscape with a significant influence. The buying power of the Black population in the US is set to reach $1.8 trillion by 2024, a number with a substantial potential impact on the US economy. From music to film to fashion, Black Women Influencers set trends that are followed avidly by their communities, resulting in increased sales of the products.
The concept of self-care has slowly made a stronghold among Black women who now spend on products that satisfy their demands. For instance, 38% of Black women say they’ll prefer buying hair care products from Black-owned businesses, developing a sense of entrepreneurial community.
Highest Employment Participation
Black women aren’t just capable entrepreneurs, as they also fuel the economy as diligent workers. Today, they are the most active group of women in the labor market, which has been like that for many years. Their labor force participation stands at 61.2%, the highest among all other groups of women, which shows how much they’re willing to contribute to the economy.
Investing in Black women and providing them opportunities is indispensable for saving US Economy. Despite being ignored and facing several hurdles, they have cemented their spot as hardworking and smart women willing to take risks and steer the economy out of trouble.
Thankfully, policymakers and different institutions have taken note and have started to support them. For instance, Goldman Sachs has pledged to spend $10 Billion as direct investment capital in Black women over the next 10 years. Moreover, they’ll also spend $100 million as philanthropic support for over 1 million Black women.
The same report by Goldman Sachs claims that there is no better investment avenue available today than investing in Black women. They can provide incredible returns for every dollar spent on them by creating more than 1 million jobs and adding $300-450 billion to the GDP.
Given all the evidence, it is clear that investing in Black women and providing them a level playing field can transform the economy. Not only have they got a strong entrepreneurial spirit, but they also represent a massive chunk of the consumer market. By providing them with funding and the right environment, there is no doubt that they can cause a cosmic shift in the economy never witnessed before.