Trailblazers In Business: Women Redefining Entrepreneurship

Women are emerging as a leading force across industries, reshaping the global business landscape with their innovation, leadership, and resilience. As entrepreneurs, executives, and decision-makers, women are driving progress, fostering diversity, and unlocking new opportunities for growth. However, these trailblazers face disproportionally higher barriers to accessing capital and resources necessary to launch and scare their businesses.

This is where Community Development Financial Institutions (CDFIs) come in, offering women entrepreneurs the financial support they need to turn dreams into thriving businesses. CDFIs are mission-driven financial institutions that provide loans and financial services to underserved communities, especially for women of color and including women entrepreneurs who may face challenges obtaining traditional funding.

In 2019, women owned 42% of all U.S. businesses, a number that continues to grow each year. In fact, according to the 2024 Impact of Women-Owned Business Report by Wells Fargo, between 2019 and 2023, the number of women business owners increased at nearly double the rate of those owned by men. Black women are the fastest growing group of entrepreneurs, starting businesses at a rate of 4.5 times the national average. Yet, access to capital remains a persistent challenge. Women entrepreneurs, particularly women of color, are far more likely to be denied loans or given less favorable terms than their male counterparts.

According to a report by the Federal Reserve, 60% of Black women entrepreneurs reported funding gaps that hindered their business growth. This is why CDFIs play a crucial role. Designed to lend in areas where traditional banks hesitate, CDFIs are on the front lines, ensuring that women entrepreneurs from underserved communities have access to the capital they need.

One such example is Denkyem Co-op, a Black-led CDFI based in Washington state, which is a social purpose corporation providing direct funding to Black-owned businesses looking to increase their capacity. Denkyem has been instrumental in supporting women entrepreneurs like Monika Mathews, founder of QueenCare, which creates handcrafted skincare products infused with natural ingredients. QueenCare also supports youth programming in the Seattle area through Mathew’s Life Enrichment Group. With Denkyem’s investment and business development support, Mathews has expanded her business and increased her community impact.

Additionally, Denkyem Co-op proudly supports a diverse range of women-owned businesses, including a women’s mental health therapy practice, doula center and youth-enrichment organization.

Freedom Equity Inc. is another great example of the significant role CDFIs play in alleviating historic barriers for minority business owners to access business capital. As a Black woman-led CDFI with a 100% Black woman staff and a majority Black woman board of directors, Freedom Equity understands the various obstacles women encounter throughout their journey of entrepreneurship. About 43% of their borrowers (and 53% of those who’ve engaged with them) are women-owned businesses seeking loans and business development assistance.

One of Freedom Equity’s clients, The Water Ice Holdings LLC, is a family-owned business that operates The Water Ice Shoppe and Marlow’s Cheesesteaks, has received significant support from Freedom Equity. With Freedom Equity’s help, the business has grown from a single location and food truck to four locations, while expanding wholesale and catering operations. Freedom Equity’s capital infusion allowed them to expand and increase their operational capacity.

The Nutter Center for Empowering Women Inc. (NCEW) is another client of Freedom Equity that has benefited from their support. A local nonprofit focused on self-sufficiency programs for adults and youth, NCEW faced a significant cashflow problem due to an issue with Medicaid payments. Freedom Equity stepped in with a term loan that stabilized NCEW’s operations and positioned them for a larger investment from a traditional financial institution.

In recognition of National Women’s Small Business Month, let’s honor 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.