Breaking the Mold: WOC in Entrepreneuriship
We originally wrote this post for National Women’s Small Business Month and Hispanic Heritage Month, but alas life and deadlines got in the way. But it’s always great time to highlight the valuable insights around the rise of women of color-owned businesses, particularly Latina-owned ventures. Did you know that women of color own nearly 47% of all women-owned businesses, with Black and Latina entrepreneurs leading the way in business growth? Despite this incredible progress, imposter syndrome still permeates this demographic significantly.
Our friend, Imposter Syndrome.
Raise your hand if you’ve ever dealt with feelings of inadequacy, comparison, and fear. *raises hand*. Well, according to the Oxford Dictionary, imposter syndrome is the persistent belief that one's success isn't truly earned or legitimate.
Despite owning nearly 47% of women-owned businesses (say it louder for yourself and all women in the back), women of color often grapple with this feeling, which can be especially challenging when starting a business.
The pressure to meet society’s standards of perfection can fuel fears of failure, but growth comes from learning through mistakes, not avoiding them. Women of color show us the power of using our voices, embracing individuality, and valuing our unique skills. There will never be a perfect time to start a business, and preparation won't cover every challenge—but trusting in your efforts and letting things unfold is key.
Starting a business as a woman of color can be especially challenging. Studies show that women of color face more barriers in accessing funding, with only 0.64% of venture capital dollars going to Black and Latina founders in 2023. Despite these hurdles, women of color represent one of the fastest-growing groups of entrepreneurs in the U.S., with businesses owned by Black women growing by 50% from 2014 to 2019. Yet, the feeling of imposter syndrome is prevalent, often exacerbated by the pressure to succeed in a market where the emphasis on perfection can be paralyzing.
Is imposter syndrome holding you back from starting your own business?
Often, we create worst-case scenarios in our minds, but reality is rarely as daunting as we imagine. The limits you set can shape your path, so recognize the value of your skills, achievements, and cultural heritage.
Let’s look at some fun facts:
Despite revenue and funding disparities, women of color are launching businesses at a faster rate than other groups, driven by resilience. During the pandemic, while men-owned businesses declined, women-owned ventures grew. Between 2019 and 2023, these businesses saw a 94.3% increase in firms, 252.8% growth in employment, and 82.0% revenue growth, adding 1.4 million jobs and $579.6 billion in revenue.
Latina entrepreneurs are particularly ambitious, with nearly half a million businesses generating $250,000-$999,999 and growing revenue by 30%. The market is expanding, and women of color are leading the way. Let’s inspire, support, and foster growth together.
Latina entrepreneurs often face unique challenges rooted in intersecting issues of racism, sexism, and the cultural expectation of placing others' needs before their own. A 2019 report from LeanIn.org and McKinsey & Company found that 45% of women of color reported being the only person of their gender in many corporate settings, a feeling that’s even more pronounced in STEM fields. These "only" experiences can fuel imposter syndrome, making it feel like you don’t belong or your success is undeserved.
However, the success stories of Latina-owned brands, such as Sandra Velasquez’s Nopalera, show how embracing cultural heritage can be a powerful source of inspiration. She launched her Mexican-rooted brand during the pandemic, using her background to differentiate her products in the beauty industry, serving as an example of how one's identity and heritage can become a brand's unique selling point
Overcoming Imposter Syndrome
While data shows that imposter syndrome is more prevalent among women, particularly younger professionals and women of color, the evidence of business growth among these groups speaks volumes about their capability and impact. Studies indicate that more than half of women experience imposter syndrome compared to 24% of men. For women of color, these feelings are often exacerbated by systemic issues, yet their ability to overcome them drives business growth and economic contributions.
Things that help when dealing with imposter syndrome
To navigate imposter syndrome, try these strategies:
Embrace Uncertainty – It’s okay not to know what the future holds. Focus on your efforts and trust that things will work out, even if the path isn’t always clear.
Leverage Data as Motivation – The growth of women-owned businesses shows your efforts are part of a broader trend of success. Shift your focus from self-doubt to the impact you're making.
Be Confident – Trust in your ability to face challenges and overcome what comes your way. Your resilience is part of what drives the success of women-owned businesses.
Foster Community & Seek Mentorship – Connect with communities like Latina or WOC entrepreneur groups to reduce feelings of isolation and learn from others who’ve faced similar challenges.
Embrace Your Unique Story – Your cultural background is a powerful differentiator. Use your heritage as a source of strength, like other Latina entrepreneurs who have incorporated it into their brands.
Focus on a Growth Mindset – View your business journey as a chance to learn. Mistakes are not failures; they often lead to the biggest breakthroughs.
Be Patient and Kind to Yourself – Progress takes time, and feelings of inadequacy don’t disappear overnight. Live your process and recognize that growth is ongoing.
Celebrate Milestones – Reflect on your achievements during National Women’s Small Business Month and Hispanic Heritage Month. Acknowledge the progress you’ve made and celebrate the successes of other women of color.
How Branding Can Help
Investing in your branding can help you thrive and navigate the challenges of entrepreneurship with confidence. By clarifying your vision and defining your business's unique strengths, branding empowers you to take ownership of your story and showcase your value. As the market continues to expand, women of color are at the forefront, breaking barriers and redefining success and becoming thought leaders in their industry.
Together, by building strong brands, we can inspire, support, and foster growth in our communities, creating a lasting impact that goes beyond business.
