Sacramento Business Journal, February 20, 2004

A new report from the National Women's Business Council will help dispel the persistent stereotypes of African-American women as helpless victims unable to advance without help from the government.

According to "African-American Women and Entrepreneurship," these women own 365,110 businesses nationwide, employing 200,000 people and generating nearly $14 billion in sales. The number of these firms has increased 17 percent between 1997 and 2002, with a sales increase of 7 percent.

More than one-third of all firms owned by African-Americans are owned by women, employing 25 percent of the workers and generating 15 percent of the sales.

The number of businesses owned by African-American women represents 6 percent of all privately held firms in the United States that are majority-owned by women. Those are impressive numbers, but there is more to the story.

Controlling destinies: African-American women, the study found, were more likely to start their firms alone, and to be the sole owner. The study also found that, in the fastest-growing firms, 80 percent of the owners started the businesses out of a desire "to exercise more control over their own destiny."

Other frequently cited goals included using management expertise and education, building personal wealth, serving the community and overcoming racial barriers.

The study shows that barriers persist, with 47 percent of African-American women encountering difficulties in obtaining financing for their businesses, compared with 28 percent of whites, 27 percent of Hispanics, and 22 percent of Asian women business owners. Still, the study found that "African-American women have a higher propensity for entrepreneurship than white or Hispanic women, who are about equally as likely to attempt to start a business."

Dispelling myths: There are a number of reasons why this report should come as good news. Women who run profitable businesses are not likely to be dependent on men.

Through their example, they inspire others and dispel the myth that they are helpless victims. As the report shows, the number of businesses owned by African-American women is impressive and growing.

The report also shows that businesses owned by African-American women are concentrated in California, Florida, Georgia, Illinois, Maryland, Michigan, New York, North Carolina, Texas and Virginia.

Certainly, one would like to see a broader profile of states.

Policymakers and legislators, at the national, state and local level, can help by easing regulation, lowering taxes, and generally making it easier for all women to start and maintain a business.

The message from government should not be "depend on us," but "you go, girl." The entire nation will be the better for it.

Sally C. Pipes is president and CEO of the California-based Pacific Research Institute. She can be reached at spipes@pacificresearch.org.