Black Women Entrepreneurs Make Significant Contributions to the Economy

According to the Wells Fargo 2024 Impact of Women-Owned Businesses Report, between 2019 and 2023, Black/African American women-owned businesses saw average revenues increase 32.7%, compared to 12.1% for all women-owned businesses. 

In spite of this impressive growth, systemic disparities in funding and mentorship opportunities persist. Fortunately, new programs are addressing these gaps.

Read on to learn how black women entrepreneurs make significant contributions to the economy.

For Women In Business, Simply Being Well-Connected Is Not Enough

Engaging in the same networking activities as men, such as golfing or having a beer together, the logic seems to go, will increase women’s exposure to work opportunities.  A new study by Northwestern University's Kellogg School of Management professors Brian Uzzi and Yang Yang suggests this advice isn’t quite right. While it’s true that highly connected women tend to land better jobs and build their businesses faster, the most successful women also have something they cannot get through “beers with the boys”: close ties with female peers.

Here's the key:

“Men really need a network that’s going to maximize their access and exposure to market information,” says [co-author and Professor] Brian Uzzi. Women, however, “need the same thing men need and one thing more.”

Specifically, women need “private information,” which may include insider tips about a company’s leadership culture and politics, or hints about how to make an impression in a male-dominated industry, for example.

Read on to understand that for a woman to land a top job, she needs different types of networks than men.  Simply being well-connected is not enough.

Create Healthy Habits: Take a Bath. Light a Candle. Power Down Your Day.

Highly successful leaders create healthy habits throughout the day, but what creates success are the habits they’ve developed in their nighttime routines. 

Are you intentional with your nighttime habits?  These folks are.  They set themselves up for success each night by creating routines that help them wake up energized, ready to accomplish their goals and clear on how they’ll spend each day.

Take it from SPANX founder Sara Blakely who spends the evening with her children and then puts them to bed. Every night, she takes a bath and lights a candle as a way to power down from a hectic day—she sees value in turning off work mode.

Are you good at turning off work mode?

Anything You Can Do, I Can Do Better

There are a lot of things that women founders can do better than men. Like a "anything you can do, I can do better" attitude.  It works.

With that spirit, Audrey Chocron and Cynthia Phitoussi – co-founders and managing partners of SeedIL, a VC fund focusing on seed and pre-seed Israeli startups – began meticulously researching the local startup ecosystem and became particularly interested in startup accelerators and incubators, and new immigrant entrepreneurs like themselves. 

They spoke to CTech about founding and managing SeedIL Ventures which just raised $18 million for its second fund, about their journey as two female investors and founders in a male-dominated landscape, and how the war has impacted investment.

The Case For Investing in Women Entrepreneurs: Greater Economic Potential

The Women Entrepreneurs Finance Initiative presents its Case for Investing in Women Entrepreneurs, which launches the resource mobilization campaign for the second phase of We-Fi, post-2022. 

Recognizing the urgency of investing in women, the Case for Investing is not only a testimonial to We-Fi’s track record but, more importantly, the need for the global development community to recognize the economic potential of women entrepreneurs.