Why 2020 is the Year Black Women Should Start a Business

2020, despite its talent for bad news and surprising the world with one unbelievable problem after another, does have some goodness to offer. For Black women, for example, 2020 could be the perfect year to start a business. Here are a few reasons why.

Taking Advantage of a Recession

A recession can be a good time for Black women to start a business. The time is ripe for innovation and a breath of fresh air. Especially if your business can present a new and better solution to a problem, a global pandemic could be the opportunity you’ve been waiting for.

A recession also means that industry competition is less fierce. The majority of businesses, both big and small, are struggling in the current climate. The market is ready for new entrants, especially those who can work from home from the beginning. Go out and ask people what they want from businesses during this crisis and how they think companies could be doing better, then figure out a way to fill those gaps with your own business.

In addition, supplies will be cheaper. Companies will be selling off materials, equipment, and other products at lower prices. This can help you, as a startup, minimize overhead costs. Despite the obstacles presented by a recession, you can also turn the turbulent environment to your advantage.

Black-Owned Businesses in the Spotlight

While entrepreneurs are starting up over half a million businesses a month, special focus is currently being directed toward Black-owned businesses. Due to the current spotlight on the Black Lives Matter movement and fighting for civil rights, people everywhere are encouraging their friends and family to prioritize supporting Black-owned businesses and bring them more business.

Lists that highlight local businesses owned by Black entrepreneurs are being circulated on social media. This emphasis on supporting Black-owned businesses makes 2020 a good year for Black women to start a business.

Grants Available for Black Women

There are many grants available specifically for African American women who want to start businesses. Federal, state, and local grants, as well as independent contests and grant programs, offer money to help Black, female entrepreneurs.

The New Voices Fund, for example, has over 100 million dollars to award to women of color who wish to start or grow a business. Other funds include Black Women Talk Tech and Black Girl Ventures.

2020 could be your year to become an entrepreneur. The positive elements of a recession, combined with the focus on Black-owned businesses and the availability of grants for Black women seeking to start their own businesses, makes it perhaps not the worst year after all.

Read more great tips here: How Black Restaurant Owners Can Save Money