Supporting Black-owned small businesses is crucial, especially as major retailers reduce their DEI efforts.

As Black History Month wraps up, it's essential to focus on a vital group: Black female entrepreneurs. Despite representing less than 10% of the U.S. population, Black women have become the fastest-growing segment of entrepreneurs nationwide.

This week, we're joined by Tiffany Dufu, President of the Tory Burch Foundation and author of Drop the Ball: Achieving More By Doing Less, who shares effective strategies to support Black women-owned businesses today.

Growth of Black Women Entrepreneurs

Tiffany Dufu: Data from the Brookings Institution reveals that from 2017 to 2020, Black women-owned businesses surged by nearly 20%, outpacing both women-owned and Black-owned businesses overall. What led to this growth, and how has it evolved since 2020?

Tiffany Dufu: The trend of Black women launching businesses began rising before the pandemic. Entrepreneurship serves as a powerful means for economic mobility and independence. Historically, entrepreneurship remains one of the few accessible paths to financial empowerment.

Tiffany Dufu: Other routes, such as wealth transfer and homeownership, aren't available to everyone. Thus, entrepreneurship remains a more achievable route to financial stability. Although starting a business is challenging, it symbolizes freedom in many ways.

Challenges in Growing Small Businesses

Jean Chatzky: Last year, women launched half of all new businesses in the U.S., yet many remain small. Only 1.9% of women-owned businesses reach revenue of a million or more. What obstacles lead to this struggle?

Tiffany Dufu: Hitting this milestone is tough for all businesses, but women encounter unique hurdles. Access to capital is one significant barrier, often serving as a catalyst for growth. Networking also plays a critical role, as connections with mentors and experts can significantly influence success.

Tiffany Dufu: Building a business is like assembling a complex Lego set. After completing one phase, you must tackle the next challenge. Having access to networks can expedite that growth, but there are many factors at play that need to align for progress.

Ways to Support Black-Owned Businesses in 2025

Jean Chatzky: Following George Floyd's tragic death, support for Black-owned businesses surged, with major retailers pledging to feature Black brands. However, that support seems to be waning. How can we effectively support Black-owned businesses that we wish to see thrive?

Tiffany Dufu: Supporting Black businesses is more important than ever, especially amid current uncertainties. Small businesses are the backbone of our economy. While big corporations like Google and Amazon dominate headlines, many people rely on small businesses for their livelihoods.

Tiffany Dufu: If possible, buy directly from Black-owned businesses. If you must shop at a big retailer, try to purchase their products in-store, as it still benefits those businesses. Even if you disagree with larger retailers' policies, maintaining a diverse supply chain sends a positive message.