The number of African American women business owners with bank credit of $100,000 or more doubled between 1998 and 2002 according to Wells Fargo’s latest research collaboration with Center for Women’s Business Research. Wells Fargo sponsored the report, “African American Women Business Owners in the United States,” one segment of a multi-cultural study to understand the unique needs of women business owners of all ethnic groups.

The study surveyed women business owners of color over a six-week period in 2002. The recently published fact sheet marks the first time key findings for African American women business owners have been highlighted from the original, multi-ethnic study.

“The Center has shown that the number of African American women-owned businesses increased by 17 percent between 1997 and 2002, more than double the rate of all businesses,” said Brenda Ross Dulan, Market President, Los Angeles Metro Region and National Spokesperson for Wells Fargo’s African American Business Services program.

These latest findings help outline some of the greatest priorities and challenges for this segment of women business owners.

Trends in Financing Choices:

• The percentage of African American women business owners with bank credit of $100,000 or more doubled between 1998 and 2002.
• African American women business owners are more likely to use commercial bank loans for start-up capital than in the past.
• African American women business owners are more likely now to be using higher levels of start-up capital.
• African American women, more than other women business owners, anticipate having an additional need for business financing in the coming year.
• A much greater percentage of African American women business owners – when compared to any other ethnicity surveyed – say they did not borrow capital to start their firms.

Specific Business Concerns:

The top concern among African American women business owners is future growth and expansion, followed by capital and cash flow, employee issues, and the overall state of the U.S. economy.

Attitude and Motivation:

African American women business owners are much more likely than other women business owners to express altruistic goals behind their business ownership. These include a desire to “be a role model for others” and to “make a difference in their communities” through their businesses.

Nearly half of African American women business owners say they have encountered obstacles when trying to obtain financing for their firms, more so than women business owners of other ethnicities surveyed.

African American women business owners are more likely than other women entrepreneurs to start and run their business without partners, and are also more likely to be the sole owners of their firms.

The conclusions of the nationwide study, were drawn from telephone interviews with more than 800 women business owners. Copies of the complete study, can be obtained from Center for Women’s Business Research, or online at www.womensbusinessresearch.org.

Center for Women’s Business Research, founded as the National Foundation for Women Business Owners, is the premier source of knowledge about women business owners and their enterprises worldwide.

The Center provides original, groundbreaking research to document the economic and social contributions of women-owned firms, and consulting and public relations services to maximize the benefits of this knowledge.

Corporations, government policy makers, educators, organizations, the media, and individuals rely on the Center’s knowledge to strengthen their support of women business owners.