female entrepreneur.
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Women are emerging as a leading force across industries, reshaping the global business landscape through their innovation, leadership and resilience. As entrepreneurs, managers and decision makers, women are driving progress, promoting diversity and opening new opportunities for growth. However, these pioneers face disproportionately high barriers to accessing the capital and resources needed to launch and terrorize their businesses.
This is where Community Development Financial Institutions (CDFIs) come in, providing women entrepreneurs with the financial support they need to turn their dreams into business success. CDFIs are financial institutions with a mission to provide loans and financial services to underserved communities, particularly women of color and women entrepreneurs who have difficulty accessing traditional financing. is.
In 2019, women owned 42% of all U.S. businesses, and that number continues to grow every year. In fact, between 2019 and 2023, the number of women business owners grew at nearly twice the rate of male business owners, according to the 2024 Women Business Impact Report by Wells Fargo. Black women are the fastest growing group of entrepreneurs, starting businesses at 4.5 times the national average. However, access to capital remains a persistent challenge. Women entrepreneurs, particularly women of color, are far more likely than their male counterparts to be denied financing or receive less favorable terms.
According to a Fed report, 60% of Black women entrepreneurs report that a lack of capital is hindering their business growth. This is why CDFIs play an important role. Aimed to lend to areas where traditional banks are hesitant, CDFIs are at the forefront of ensuring that women entrepreneurs in underserved areas have access to the capital they need.
One example is Denkyem Co-op, a Black-led CDFI based in Washington state. It is a social purpose corporation that provides direct funding to black-owned businesses looking to increase their production capacity. Denkiem has been committed to supporting female entrepreneurs like Monica Matthews, founder of Queen Care, which creates handcrafted skin care products formulated with natural ingredients. QueenCare also supports youth programs in the Seattle area through Mathew's Life Enrichment Group. With Denkyem's investment and business development support, Mathews has expanded his business and increased his impact in the community.
Additionally, Denkyem Co-op proudly supports a variety of women-owned businesses, including women's mental health therapy practices, doula centers, and youth development organizations.
Freedom Equity is another great example of how CDFIs play a critical role in alleviating historical barriers for minority business owners to access business capital. As a Black women-led CDFI with a 100% Black women staff and a majority Black women board, Freedom Equity understands the obstacles women encounter on their entrepreneurial journeys. Approximately 43% of borrowers (and 53% of loan participants) are women-owned businesses seeking financing or business development support.
One of Freedom Equity's clients, The Water Ice Holdings LLC, a family-owned business that operates The Water Ice Shop and Marlowe's Cheesesteak, has received significant support from Freedom Equity. I am. With support from Freedom Equity, the business grew from one food truck location to four locations while expanding wholesale and catering operations. Freedom Equity's capital injection allowed the company to expand and improve its operational capabilities.
Nutter Center for Empowering Women Inc. (NCEW) is another client benefiting from Freedom Equity support. NCEW, a local nonprofit focused on self-sufficiency programs for adults and youth, was facing significant cash flow issues due to Medicaid payment issues. Freedom Equity stepped in with a term loan to stabilize NCEW's operations and position it for larger investments from traditional financial institutions.
In honor of National Women's Small Business Month, let's celebrate the incredible contributions of women entrepreneurs to our economy and communities. Celebrate this month by supporting and uplifting women-owned businesses. Whether through mentorship, collaboration, or simply spreading the word about their work, our collective efforts can make a meaningful difference.
