Women in Business: A New Area of Independence and Opportunity

Business Education

Feb 20

Imagine being legally barred from securing a business loan without a man’s approval. This was the reality for American women until the passage of the Equal Credit Opportunity Act (ECOA) in 1974, which finally granted women the financial autonomy to pursue their entrepreneurial dreams.

For much of U.S. history, women were excluded from financial decision-making and business ownership. The 19th Amendment in 1920 granted women the right to vote, marking a significant political milestone. However, true economic independence remained out of reach for decades. It wasn’t until the ECOA’s enactment in 1974 that women could obtain credit without a male co-signer, breaking down significant barriers to entrepreneurship.

Since gaining financial independence, women have made remarkable strides in the business world. As of 2022, women-owned businesses in the U.S. generated an estimated $2.1 trillion in receipts, employed 11.4 million people, and maintained an annual payroll of $508.5 billion, according to the U.S. Census Bureau. This growth underscores the vital role women entrepreneurs play in the nation’s economy.

Black Women Entrepreneurs: Leading the Charge

Within this broader movement, Black women have emerged as a dynamic and influential force in entrepreneurship. Despite facing compounded challenges of racial and gender discrimination, their resilience and determination have led to significant achievements.

As of 2022, Black or African American-owned businesses numbered approximately 194,585, generating $211.8 billion in annual receipts, employing 1.6 million people, and maintaining an annual payroll of about $61.2 billion, as reported by the U.S. Census Bureau. Notably, nearly 50,000 (25.6%) of these businesses operated in the health care and social assistance sector, highlighting the critical contributions of Black women in these fields.

The growth rate of businesses owned by Black women is particularly remarkable. From 2014 to 2019, the number of businesses owned by Black women grew by 50%, representing the highest growth rate among all female demographic groups, according to J.P. Morgan. This surge reflects both a response to systemic barriers in traditional employment and a powerful drive toward economic self-determination.

Goldman Sachs’ Commitment: One Million Black Women Initiative

Recognizing the challenges faced by Black women entrepreneurs, Goldman Sachs launched the One Million Black Women initiative in 2021. This ambitious program pledges $10 billion in direct investment capital and $100 million in philanthropic support over the next decade, aiming to narrow opportunity gaps for at least one million Black women by 2030.

A cornerstone of this initiative is the Black in Business program, designed specifically for Black women sole proprietors. This free 10-week business education program provides participants with practical skills, access to capital, and a robust network of advisors and peers. By equipping Black women entrepreneurs with these resources, Goldman Sachs aims to foster business growth and close the racial wealth gap.

The journey of women in American business is a testament to resilience and progress. From overcoming legal restrictions to leading in various industries, women entrepreneurs have transformed the economic landscape. However, challenges persist, especially for women of color.

To continue this positive trajectory, it’s imperative to support policies and initiatives that promote equitable access to capital, mentorship, and educational resources. By fostering an inclusive environment, we not only honor the strides made by women entrepreneurs but also pave the way for a more robust and diverse economic future.