Small businesses need support during the coronavirus pandemic, especially those in neighborhoods hardest hit by it. And if small businesses fail, it isn’t just their companies that will suffer, it is the entire community that will lose access to goods and services. Neighborhood workers who invest their paychecks in the local economy will lose their jobs, too. The firms most at risk of failure are owned by black women.
Black women represent 42% of all net new women-owned businesses, according to the American Express 2019 State of Women-Owned Businesses.* That's three times their share of the female population (14%). While Black women are increasingly becoming entrepreneurs, projections of Census data shows the size of their businesses shrank after the Great Recession.** Other businesses grew. Average revenue of:
- Black women-owned businesses decreased by 41%.
- White women-owned businesses increased by 21%.
- Men-owned businesses increased by 16%.
Structural differences in personal wealth, business experience, and networks, as well as different entrepreneurial motivations and increased likelihood of being single mothers balancing caregiving responsibilities with running a business result in Black women having small—and increasingly smaller—businesses.
This pattern must not be repeated with this economic downturn. Yet, the signs are already here: The Covid-19 crisis is already hurting Black women entrepreneurs more.
How will you make your congress people know the importance of these acts to the survival of small businesses and the competitiveness of the United States?
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