Posted 10/03/2020 in Category 1

Most Woman Black Owned Businesses Fall Prey to Discrimination

Most Woman Black Owned Businesses Fall Prey to Discrimination


If something bothers you, do it yourself. At least that’s the motto of black female founders in the USA. The State of Women-Owned Business Report found that the number of women-owned businesses rose 58 percent from 2007 to 2018. Companies owned by black women increased by 164 percent. That’s three times as much. In the US, every fifth person with a migration background starts a business instead of finding a permanent job. One of the main reasons is increasing frustration in the employee relationship and a lack of career opportunities. 

Starting a business as a career opportunity 

In the USA, a problematic working environment is pushing black women into self-employment. In addition, there is the phenomenon of the “glass ceiling”, the visualization of the invisible barrier, which allows women to come close to reaching the goal of the career ladder, but still not make it to top management. A look at the management positions shows that women are almost abstinent – black women especially. With a visible migration background, the way up is twice as difficult. 

Black women businesses have the lowest sales 

The turnover of businesses owned by black women entrepreneurs is worse than that of their white female counterparts. Here the snake bites its tail again. The reasons that ultimately motivated some women to become their own bosses and keep them from advancing in the company then prevent black founders from their economic success. It results in lack of access, contacts and networks. Reality shows that all these contexts are still white, masculine and (still) dominated by the father-to-sister-to-brother-of-career boost. So much so good. The next consideration would be that black people could go over to building their own cosmos of nepotism? 

99 percent don’t buy from black entrepreneurs 

Then there is the persistent rumor that black people don’t support black companies – at least financially. While the purchasing power of black people is increasing globally, they give less money for Black-Owned Businesses than any other ethnic group in the world. Take the example of the USA: One dollar circulates for 28 days in the Asian community, 19 days in the Jewish community, 17 days in the WASP (White Anglo-Saxon Protestants) communities and 7 days in Hispanic communities. Now it comes. A dollar circulates in the black community for a whopping six hours. Six hours! That means 99% of the $1.3 trillion purchasing power of black people in the US is spent outside the community. Black empowerment has its limits.  

A majority are skeptical when it comes to black businesses

The majority are just a little skeptical when it comes to black businesses. Since there are not many of them, you view them with skepticism and want to make sure that they are legit. But, of course not all are like that. We have a lot of black customers who buy our products. This shows on the one hand their support and on the other hand that products really help them and represent added value in the market.

Ebony100 is here to help black businesses and entrepreneurs – both men and women – face these challenges and grow through them with the help of active collaboration and support towards black businesses. Join hands with us and help us eliminate this bias by improving access, network and business relationships of black people. is a niche directory for Black businesses that gives more exposure to black-owned businesses. Black businesses will benefit from Google's non racist strategy – nonetheless, a niche directory like Ebony100 is important for expanding your brand and diversifying your marketing.