New Survey Shows How Black Female Entrepreneurs Overcome Funding Gap

Chairman Ariel John W. Rogers Jr. Discuss private equity and its implications for growing black businesses in Part 2^nd Bow Collective Conference – “Bloom Where You’re Planted” Charleston, South Carolina January 30th – February 1

Washington, January 30, 2023 /PRNewswire/ — Black female entrepreneurs find surprising and encouraging ways to jump the funding gap that may be holding back Black-owned businesses, according to a new study from The BOW Collective. I’m here.

Most of the business owners who participated in the survey had total annual sales of $250,000well above the median earnings of non-minority women ($218,000) and minority women ($67,800)according to the 2021 Annual Business Survey commissioned by the U.S. Census Bureau.

But they didn’t start at the top. They had to launch without access to capital available to other business owners in America.

Only 0.03% received third-party funding at startup. In fact, her 95% of these black female entrepreneurs used personal funds to start their businesses. That risky route can result in a high debt-to-income ratio that disqualifies many of the traditional business loans.

Their challenges are not isolated. Underfunding is most common in black-owned businesses and least common in white-owned businesses, according to the U.S. Federal Reserve, “Small Business Credit Survey: 2021 for Businesses Owned by People of Color.” reported in the report.

Even after launch, almost all respondents were unable to leverage marketing and advertising to grow. Only 13% of business owners surveyed have used access to capital as a means of growth. Most companies relied on client referrals and network relationships to grow their business.

“The lack of resources has not hindered the growth of these businesses,” he said. Mr. Nic Cober, President, BOW Collective. “The question arises where would they have been if they had been properly capitalized and guided from the start.”

The Black Owner & Women’s Collective, also known as the BOW Collective, is an organization and sister organization of the top 1% Black Women Enterprises in the United States. As “business philanthropists,” members work together to bring recognition, business opportunity, and capital resources to black women’s businesses.

The BOW Collective has over 100 members working together on projects. $450 million Total annual sales in 2023 in 25 industries, from government contracting to performing arts. By 2022, the member has created over 1,500 jobs for him.

Members of the BOW Collective will share success stories, growth strategies and solidarity at Bloom Where You Are Planted, the collective’s second annual conference and award ceremony. January 30th to February 1stof Charleston, South Carolina. Tickets for the conference are sold out.

Speakers include John W. Rogers Jr.Chairman, Co-CEO and Chief Investment Officer, Ariel InvestmentsIn a fireside chat with Cober, Rogers offered insight into the role private equity can play in growing a business, and what business owners know and do before starting a conversation about capital. Discuss what you need to do.

This talk is one of many learning and networking opportunities over the three days of the conference, and Cober is eager to host the event.

“I understand the plight of women entrepreneurs because I’ve been through it,” she said. For me, this is personal.”

BOW Population Survey by Numbers

contact:
Robin Beeman
312.208.1212
[email protected]

SOURCE Bow Collective