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WHY BLACK WOMEN ARE THE FASTEST GROWING GROUP OF ENTREPRENEURS

IN THE U.S.

SENIOR CAPSTONE PAPER

SUBMITTED TO THE FACULTY OF

THE COLLEGE OF HUMANITIES, EDUCATION AND SOCIAL SCIENCES

DELAWARE STATE UNIVERSITY

DOVER, DELAWARE

IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE DEGREE OF

BACHELOR OF ARTS

IN

LIBERAL STUDIES

BY

ZAKIYAH COOMBS

MAY 1, 2023
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TABLE OF CONTENTS

ABSTRACT …………………………………………………………………………………… (1)

INTRODUCTION …………………………………………………………………………….. (2)

THE MAKING OF THE BLACK FEMALE

ENTREPRENEUR …………………………………………………………………………….. (4)

STRUGGLES AND STRATEGIES OF BLACK

WOMEN BUSINESS OWNERS IN THE U.S. ………………………………………………. (6)

WOMEN ENTREPRENEURSHIP AND

SUSTAINABLE DEVELOPMENT ………………………………………………………… (7)

AFRICAN AMERICAN WOMEN’S BLOGGERS EXPERIENCE

WITH DIGITAL ENTREPRENURSHIP ……………………………………………………. (8)

CONCLUSION ……………………………………………………………………………….. (9)

REFERENCE PAGE …………………………………………………………………………..(15)

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ABSTRACT

In this research paper I am answering the question of ‘Why black women are the fastest

growing group of entrepreneurs in the United States (U.S.).’ It is actually more of a topic than a

question, but it is one worth focusing on. When first deciding to choose this as my focus, I was

astonished at the information that I found. I am grateful that I chose this specific topic to research

and present my findings on and I am immensely grateful for the grace and leadership of Dr.

Crawford throughout this process. In the research that I have completed, I found that black

women have the least amount of resources and are expected to succeed the least in profitability

in comparison to their counterparts. So, throughout this research paper, I am going in depth as to

why, even though the odds are stacked against them, that black women are the fastest growing

group of entrepreneurs in the U.S.

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Phenomenon across science includes gravity, tides, moons, planets, and volcanic

lightning. Even though the topic at hand is not a natural phenomenon, it is one worthy of

researching. Why black women are the fastest growing group of entrepreneurs in the U.S,

outside of the numbers, is a true phenomenon. Researching and finding that they are the largest

group of entrepreneurs factually, does not explain why. Facts are facts, but in order to truly

understand the reasoning for anything, one must go beyond the facts and dive deep into the

details.

After doing thorough research and finding that compared to every other group, black

women are the most underserved in entrepreneurship, and the most likely to not succeed as well

as their counterparts, it propelled me to further investigate the topic. My main question became;

if black women receive the least of resources and don’t make the best profits in entrepreneurship,

then why are they the fastest group growing group of entrepreneurs in the U.S.? Wouldn’t that

information discourage black women from pursuing entrepreneurship? Especially, if it is set up

so that they can possibly fail? And it is almost inevitable for them to not profit the way their

counterparts do? That’s when I knew in order to truly answer my question, I had to revisit the

history of this country and entrepreneurship in order to know “why.”

In every research project or inquiry about anything that exists, the history of the topic

being researched is the most important aspect of the entire project. Throughout history, black

women have been known to be underserved and underprivileged in the United States, but yet

they seem to always prevail. No matter the circumstance or the facts, black women have been put

to the test and have survived and thrived in the worst of conditions. That is admirable and

something worth researching in any field of study. In regard to entrepreneurship, the reward of
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conducting research to find the reason for why black women are the fastest growing group of

entrepreneurs in the U.S., despite their circumstances, is just the same.

Research has shown that black women are the fastest-growing group of entrepreneurs in

the United States (U.S.) of America, but the lack of resources makes their entrepreneurship

challenging. If black women lack the necessary resources to succeed in the same ways as their

counterparts, then why do black women continue to create businesses? With numerous studies

across the country regarding black female entrepreneurship and their low predicting rates of

profitability one would think that black women would decide not to pursue business. So why the

persistence and why do black women, despite all of their struggles and disadvantages continue to

be creating businesses in this country? Some argue that it is because of these facts that black

women continue to persist, at staggering rates, to pursue entrepreneurship.

The unfair and unequal circumstances that black women have to face in the world of

business is disheartening but at the same time their resilience in entrepreneurship is inspiring. It

is a clear display of what it means to persist toward a goal no matter the circumstance and how

not to let facts discourage you from your aspirations. Lagging behind in funding, training, and

business stability is not healthy nor encouraging for the building and success of a business. But

somehow, despite these circumstances, black women remain the fastest growing group of

entrepreneurs in the U.S. Considering the lack of access to resources, black women should be the

most deficient and discouraged in pursuit of entrepreneurship, but their determination to succeed

prevails.

Given that personal wealth has lagged in recent years, is it healthy for black women to

pursue entrepreneurship? Everyone knows that starting a business does not guarantee wealth. In

order to accumulate wealth, there is a saying that goes “it takes money to make money.”
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Insinuating that one must first have money in order to make more money or become wealthy.

Thus proving, that even though things look bleak for black women, they persist no matter the

circumstances. Which is the reason for black women being the fastest growing group of

entrepreneurs in the U.S.

“In America, the stratification of Black women has a profound impact on who seeks

entrepreneurship, what sorts of possibilities they explore, and how they pursue ventures. The

practices and operations of entrepreneurs were established utilizing white and typically male

study participants, resulting in a number of assumptions about how entrepreneurship should

progress for all business owners.” (Stewart 3) Even though the practices and operations of

entrepreneurs were established utilizing white and typically male study participants, black

women still pursue entrepreneurship and navigate the hardships that come with that pursuit

relentlessly. It is admirable to say the least that black women still push forward in the pursuit and

success of entrepreneurship in the U.S. even though they lag behind in resources and

opportunities.

The spirit of black women is indescribable. Trying to formulate words to explain how

they have persisted and continued on throughout their circumstances in the United States is

impossible. It is completely unfair that the standards that they are held to in the world on

entrepreneurship does not even include their perspective, but they surpass those standards

anyway. Aside from being the fastest growing group of entrepreneurs in the U.S. black women

are also the leaders in graduates of college. (Robinson 1) So, not only are they just as valuable as

their peers and counterparts, but they are also more educated and prepared for the role of

entrepreneurship.
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Black women are just as qualified and, in some cases, more qualified than their peers.

There is no reason that they are not granted the same opportunities as their peers.

“Institutionalized racism, extensive acceptance of prejudice and stereotypes, glass ceilings, and

destitution are all systemic contributors to the labor force segregation of working class African

American women. Due to the simultaneous influence of race and gender, African American

women lag behind black men, white men, and white women in terms of status, income, and

influence in the labor market.” (Stewart 4) Due to this lag behind their peers in the labor market,

many black women have decided to create their own opportunities, thus pursuing

entrepreneurship. Black women are the fastest growing group of entrepreneurs in the U.S.

because they have decided that despite the statics in the labor market, that they are going to

always create their own opportunities for success. This is what birthed black women

entrepreneurship and the culture of black women being the fastest growing group of

entrepreneurs in the U.S.

“Despite persistent institutional barriers, a number of Black women have become

successful business owners. Not to be deterred by the obstacles in their paths, these women have

risen to the pinnacles of success in the business world by adapting to change and embracing

opportunities for innovation. Although prior research has examined the racial differences in rates

of business ownership and wealth accumulation, fewer studies explore the actual factors

contributing to the profitability, sustainability, and personal wealth-building capacity of

successful Black female-led enterprises.” (Stewart 21) Black women are so successful, despite

the numbers but in terms of their resilience, due to their commitment to persevere. Even through

the discouraging numbers and facts of the projected success of black women always seem to

project that they will always be behind.

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“According to various studies, discrimination, a lack of on-the-job support and

opportunities for growth, and income disparities, among other factors, have propelled Black

women to leave corporate America and establish their own enterprises. In the United States, 17%

of Black women are launching or operating new enterprises, compared to only 15% of white men

and 10% of white women.” (Stewart 20) So, this is the reason why Black women have decided to

leave the labor markets and pursue entrepreneurship. They have been treated unfairly and

decided that they were going to create their own lane. In that decision, despite the numbers,

black women have been very successful in their start-ups and determination to dictate their own

futures and careers.

It is completely understandable as to why black women have this strong will and

determination to pursue entrepreneurship. At the same time, it is very shocking due to what black

women have survived and are still up against in this country. “America’s racist history has

negatively impacted African Americans’ opportunities for generational wealth. From slavery to

Jim Crow, formal institutional barriers and discrimination have made it difficult for African

Americans to gain upward economic mobility.” (Jackson, Sanyal 230) The effects from slavery

to Jim Crow still live on today and negatively impact black communities all over the U.S. This

negative impact has created an environment in black communities where many people are stuck

and cannot gain upward economic mobility and black women have suffered the most due to

these facts.

“Overall, women struggle operating their businesses because of lack of experience,

constrained access to resources, and juggling work and family life. These obstacles limit the

types of businesses they are able to own, their opportunities for growth as well as profit, the

amount of time per week they can devote to the business, and their ability to maintain their
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firms.” (Jackson, Sanyal 232) It is unfortunate that women seem to always be the leaders of

being behind. But things are not as they always seem to be. Even though women struggle they

still seem to get the job done, especially black women. All groups of women all over the world

succeed in getting things done no matter how hard the circumstances are, and black women lead

in this area.

It is astonishing that with the inability to gain upward mobility being black in America

and having more struggles operating businesses as a woman overall, that black women still seem

to lead amongst all of their counterparts with being the fastest growing group of entrepreneurs in

the U.S. This is honestly because in the field of entrepreneurship, despite all the expected

failures, that black women and women overall have so much control in the field of

entrepreneurship. Women are the most influential and dominant group according to the numbers,

in the field on entrepreneurship. Women actually have the most impact globally when it comes to

entrepreneurship and business. Women are also the highest-ranking group of consumers in any

field in business, so it is inevitable that women have the most control and the most influence in

entrepreneurship.

Women entrepreneurship has attracted the attention of people all over the world that have

committed their time to researching the trends and economic shifts that affect the business world.

“Women comprise half the world’s population and play a vital role in economic and social

development. The dramatic increase in women entrepreneurship in the last decade signifies the

critical role women potentially play in global sustainable development.” (Raman et 1) Due to the

fact that women play such a huge role in economic and social development it is clear as to why

black women would be leaders and in the forefront of entrepreneurship in the U.S. Not only do

women have a strong impact on entrepreneurship in the U.S. but they also have the strongest
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impact on entrepreneurship globally. Women are important, and women are able to lead because

of their importance not only in American society but in our global society. So, it is important that

their importance is prioritized and made a main focus in progression.

“Sustainable entrepreneurs generate new organizational modes and forms that

substantially reduce negative impacts on the environment and society while addressing economic

objectives and ethical imperatives. The outcomes of sustainable entrepreneurship have direct

consequences for the United Nations (UN) 2030 Agenda and the 17 Sustainable Developmental

Goals (SDG). Of these 17 goals, SDG 5, gender equality, has direct relevance for women

entrepreneurs, focusing on equal rights for women to economic resources.” (Raman et 1) It is a

huge relief that global efforts are being made to ensure that women have the same opportunities

as men. It is also a relief to know that women and their specific needs in regard to economic

resources as entrepreneurs are being prioritized. These are the kinds of changes that are

necessary for all women to succeed, and this will greatly impact the upward mobility of black

women and their endeavors in pursuing entrepreneurship.

In the times we are living in now, equality and truth are at the forefront of our world and

our daily lives. In this Aquarian age of technology, social media and all media platforms have

changed the trajectory of business and entrepreneurship forever. We are living in a digital age,

and what that means is the way we relate to each other and live has completely been impacted by

the digital world. Entrepreneurship has been no exception to this rule, if anything

entrepreneurship has been impacted the most by the times and the digital age that we are living

in. Some people believe that digital entrepreneurship has taken away the personable nature of

business but in actuality digital entrepreneurship has created many opportunities for women and

business owners overall.

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Digital entrepreneurship creates opportunities for all entrepreneurs to expand their

audience, but it especially serves minorities. In this digital age that we are living in, all

technology creates opportunities for entrepreneurs to expand their businesses. “Digital

entrepreneurship is idealized as an opportunity for marginalized and economically challenged

groups to participate in and reap financial benefits from the market.” (McDowell 8) Digital

entrepreneurship has greatly benefited the success of entrepreneurship for black women. Having

a digital platform expands the outreach for black women entrepreneurs. Allowing them to reach

the audiences that they prefer. With this amount of control, black women have been able to, at

staggering numbers, succeed in profitability and sales. This is because through digital

entrepreneurship, black women have been able to sell themselves by including their identity into

their brand thus connecting with the people that are there to support them and creating their own

stream line of success.

“Past research indicated that individuals express a sense of racial identity, using the

Internet to negotiate their own online identities. These findings are grounded in Black feminist

theory, which calls attention to how knowledge empowers Black communities and situates Black

women as agents of knowledge. As “agents of knowledge”, Black women build their online

identity by referencing their lived experiences in order to challenge intersectionality and

gendered racism. The research on Black women bloggers is limited in terms of information

regarding how this marginalized group interacts with blogging technologies to communicate

with their audience helps to develop deeper understanding of bloggers and the blogosphere.”

(McDowell 10) It is amazing how Black women have used blogging, the blogosphere, and digital

entrepreneurship to create their own lane of success by using their own identities. This is a clear

and distinct reason why black women are the fastest growing group of entrepreneurs in the U.S.
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Despite all of their challenges from deciding to pursue entrepreneurship due to the discrimination

in the labor market use all of their resources to create opportunities for themselves to succeed.

“Discriminatory barriers have negative implications for racial minorities who desire to

embark on entrepreneurial ventures but lack the social and economic resources required when

starting a new venture. Since these unequal barriers are pervasive for minority entrepreneurs

involved in digital entrepreneurship, the study of a sector of this population may lead to

significant implications for theory, practice, and social change.” (McDowell 19) No matter what

the facts are, the truth still remains the same. Black women lead and will always lead in being the

fastest growing group of entrepreneurs in the U.S. because of their resiliency. No matter the

circumstances, black women create a lane for themselves in entrepreneurship. It is admirable to

say the least, but it has now been proven as the reason for black women being the fastest growing

group of entrepreneurs in the U.S. As a group, they always take the resources that are given to

them and make a way for themselves and create the lifestyles and the realities that they want in

this country and quite frankly all over the world.

In these current times, of the 21st century women are the most influential group in the

world of entrepreneurship. The oppressive and discriminatory social constructs that have shaped

the world of entrepreneurship may still be alive today, but they do not stop the success of black

women in the U.S. Even though black women have been severely undervalued in

entrepreneurship, by way of injustice and discrimination they still persevere. The oppressive

nature of injustice and discrimination may have tried to keep black women down in the U.S., but

the resilience and strength of black women still remains alive. Thus, depicting not only to the

U.S. but to the entire world why black women are the fastest growing group of entrepreneurs in

the U.S.
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The global phenomenon that is the COVID-19 pandemic was a monumental change for

our global society. With numerus eruptions in social constructs all over the world, it forced us to

change the way we live and think. The pandemic also shed light on the impact of the digital age

that we are living in and the amount of success that is possible in digital entrepreneurship. In

light of the pandemic, we have seen how much our world has to change and how life-changing it

can be to everyone when one group of people are treated unfairly. Even so, black women still

persevered through those circumstances and created a lane of their own for success in the field of

digital entrepreneurship.

Being black in America is a struggle, being a woman adds to that struggle.

Discrimination and injustice in the field of entrepreneurship has made it hard for black women to

be successful. Despite all the negativity that black women have had to endure in the U.S., they

still remain to prosper. Even though discrimination and racism has been going on for a long time

it can be changed with the correct approach. For there to be a change in entrepreneurship and the

treatment of black women in entrepreneurship, it will take cooperation of all parties included in

the U.S. Black female entrepreneurs are influencing change by setting their standards high and

staying committed to their standards in business, which has a huge impact on their experience in

entrepreneurship. There are many factors that are included in why black women are the fastest

growing group of entrepreneurs in the U.S., but the one that matters most is their unwavering

faith and commitment to success.

Black women pursued entrepreneurship at sky rocketing rates in order to get away from

the unfair treatment that they were experiencing in the labor markets. This is why they lead in

being the fastest growing group of entrepreneurs in the U.S., despite all the challenges that they

face. Those challenges have not stopped black women from pursuing and succeeding in the field
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of entrepreneurship. Black women have become accustom to being comfortable with challenging

the norm and proving the nay Sayers wrong. Black women have also been persistent in creating

their own lanes of success when it comes to entrepreneurship. They have done this by utilizing

their own identities and their personal creativity as leverage, thus proving that in order to lead

and be successful one must be inventive and skillful. Because black women value themselves

and use their personal resources as an advantage, they are leaving the labor markets and are the

fastest growing group of entrepreneurs in the U.S.

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References

Jackson, T. M. & Sanyal, P. (2019). Struggles and strategies of Black women business owners

in the US. Journal of Business Anthropology, 8(2), 228-249. 

McDowell, M. (2020). African American women bloggers’ lived experiences with digital

entrepreneurship: A transcendental phenomenological study (Publication No.27546282)

[Doctoral dissertation, Walden University]. ProQuest. 

Raman, R., Subramaniam, N., Nair, V. K., Shivdas, A., Achuthan, K., & Nedungadi, P.

(2022). Women entrepreneurship and sustainable development: Bibliometric analysis

and emerging research trends. Sustainability, 14(15), 9160. 

Robinson, S. L. T. (2019). African American female entrepreneurial spirit and the

community success relationship (Publication No. 13808617) [Doctoral dissertation, Northcentral

University]. ProQuest. 

Stewart, S. (2022). About her business: The making of the Black female entrepreneur  

(Publication No. 29323331) [Doctoral dissertation, Pepperdine University]. ProQuest.