Black Women are Leading the Black-Owned Business Revival Post COVID-19
Black women are guiding the road to business recovery for Black-owned businesses, according to a recent report by Business Insider.
The amount of Black-owned businesses are reported to have increased 30% from the number of Black-owned businesses before COVID-19 struck, largely due to Black women. The beginnings of the nationwide pandemic and the government shutdown that resulted from it closed down many Black-owned stores. At the worst of the pandemic, however, Black women turned to starting their own businesses.
In a study conducted by Gusto and the National Association of Women Business Owners, out of all the 1,200 female entrepreneurs participating, 5% were reported to have opened a business during the pandemic.
About 66% of the women in this group who recently got into entrepreneurship because of COVID are operating their shops alone. Of these new owners surveyed, Black women make up about 47%, making them the most successful sole owners of businesses post-COVID.
In another Harvard Business Review report, they found that 17% of Black women have got or are either getting their foot into the world of commerce, more than both white men and white women.
“At a time when folks are rethinking their lives and choices, it is not surprising that more Black women are electing to become CEOs of their own companies rather than waiting for their intelligence and skills to be recognized at their current firms,” said Melissa Bradley, creator of 1863 Ventures, a business program that helps Black owners expand their brand, in conversation with Business Insider.
The prospering of Black female entrepreneurs, however, comes after Black businesses were hit hardest out of any group in the U.S. by the pandemic. According to the Federal Reserve Bank of New York, Black owners lost the most as 41% of their stores shut down- substantially lower than the 17% of white-owned businesses that were forced to close.
When the Paycheck Protection Program, otherwise known as PPP, sent checks, only 20% of the states with the most Black-owned businesses received them. With the racial wealth gap, those that found the most success in using these checks to keep their businesses running were white business owners.
While 60% of the white business owners that received this loan paid found success, only 29% of Black owners were able to use this money to keep up with the rent and other expenses of running a business.
Bigger companies are working to help keep smaller Black-owned businesses open. Wells Fargo recently pledged $20 million from their Open for Business Fund to help keep Black-owned businesses in Atlanta afloat.
Capital One is also working on creating Capital One Business alongside the Association for Enterprise Opportunity. Through this program, they’ll be giving Black-owned businesses $10,000 to spend in grants and free supplies.
