Black Women Microbusiness Ownership Surges, A New Report Has Found
Black women remain the fastest-growing group of entrepreneurs, more than doubling in number since August 2019, according to a new report by GoDaddy Venture Forward.
GoDaddy Venture Forward is a research initiative that quantifies the impact of over 20 million microbusinesses on their local economies and provides a unique view into these entrepreneurs’ attitudes, demographics, and needs.
In August 2023, Venture Forward completed its 10th national survey with responses from over 6,000 small business owners across the US and UK.
Black microbusiness ownership
Most of the businesses surveyed were microbusinesses, employing fewer than ten people. These smaller businesses faced challenges such as marketing, access to financial capital, and finding employees.
The report found that Black women comprise most Black microbusiness owners.
In the US, 15% of microbusinesses were owned by a Black entrepreneur, and of those, 68% are owned by a Black woman.
In the UK, 5% of microbusinesses are owned by a Black entrepreneur, with 60% owned by a Black woman.
GoDaddy previously found that the fastest-growing ownership segment in the February 2023 survey was Black women, who increased their share from 8% to 13% since 2019.
Entrepreneurship is becoming more diverse
Of US microbusiness owners, 29% identify as Black, African American, Asian, Pacific Islander, American Indian, Alaska Native, or multiracial entrepreneurs, compared to 17% in 2019.
According to the Pew Research Center, the Black majority ownership rate for US businesses of any size is only 3%, making the microbusiness sector one of the most diverse pockets of the economy right now.
“We all know entrepreneurship is powerful, and with this data, people can understand precisely how powerful it is across different types of small and micro-businesses,” said Alexandra Rosen, senior director of Venture Forward.
“Better understanding helps advocates find opportunities to further support these entrepreneurs. What our research demonstrates is that entrepreneurship creates positive impacts for entrepreneurs’ households, the communities where they live and work as well as the greater economy.”
