EQUITABLE INFRASTRUCTURE GROUP
Because inequity leaves its imprint
Black Women Interactive
Implicit bias insidiously touches every segment of society, from political elections to medical research and venture capital fundraising. Despite evidence that investing in women- and minority-owned businesses contributes to macroeconomic health and innovation, women and intersectional entrepreneurs receive less venture capital than their male counterparts. Female founders receive two percent of all venture capital in the United States, with only a fraction of that allocated to women of color. In 2020, venture capital funding awarded to women-founded startups declined 27 percent from the previous year. Furthermore, the proportion of venture capital dollars to female founders decreased from 2.8 percent in 2019 to 2.3 percent in 2020.
The Corporate Realm
The rise in support for the Black Lives Matter movement has corresponded to an increase in perceived opportunities for Black-owned businesses and Black Women entrepreneurs. The social movement has not only ignited diversity hiring initiatives in the world's top-tier companies, but it has caused companies to prioritize diversity in their upstream, downstream, and partner companies and engage with Black-owned entities.
The Stats on the Fastest-Growing Segment
Black women represent roughly 14 percent of the female population in the United States, 11 percent of college graduates, nine percent of the labor force, and four percent of leadership positions. While just four percent of total startups are owned by Black Women, over one-third of all Black-owned businesses are owned by Black Women. The macroeconomic impact of Black Women-owned enterprises and entrepreneurs cannot be discounted. However, while Black women are the fastest-growing segment of business owners (17 percent), their entrepreneurial ventures fail at a higher rate than their peers. Thus, attention must be payed to the challenges befalling Black Women business owners, as well as the potential opportunities for advancement and expansion.