THE #1 LOVE OF MINORITY WOMEN IS ... BUSINESS OWNERSHIP!

Minority women start businesses at more than twice the rate of other women in the United States. The reasons behind this phenomenon explored here.

NEW YORK, NY - Minority women start businesses at more than twice the rate of other women in the United States.

According to a report issued by the Center for Womens Business Research in early 2002, there are an estimated 1.2 million businesses owned by women of color in the U.S., employing more than 822,000 people and generating $100.6 billion in sales.

Why are minority women more likely to take the risk of striking out on their own? "A number of factors contribute to this trend," says Yuwanda Black, co-owner of the online store EthnicHomeDecor.com. "I would say the glass ceiling, lack of satisfaction, and lifestyle changes are the three major factors. Our heads hit the glass ceiling quicker and harder than most. Therefore, we have been slower to invest heavily in the idea of climbing the corporate ladder as a road to success."

Lifestyle changes such as child rearing and caring for aging parents cause many women who work outside the home to rethink their lives. Many times they find a home-based business the obvious solution.

The Internet and inexpensive office equipment make opening a home office a matter of two steps: calling the phone company and making a trip to the local office supply store.

Having made the decision to open a business, the next question is what types of businesses are these women starting? Most (58%) are in the service sector. Many entrepreneurs start with what they know. Minority women are no different in this respect.

Many turn an existing hobby into a business. Or, they take professional skills from a current position and start their own firm. The businesses range from offering professional services like marketing and financial advice, to personal services, such as gift baskets and hair salons.

Operating capital is an ongoing concern for this group. As they are more likely to start their ventures with personal rather than institutional funds, they are known for turning to business mentors, religious advisors, professional organizations, and other entrepreneurs for advice and guidance.

This last fact may account for the continued success and rapid start-up rate. The Center for Womens Business Research reported a 31.5% increase in minority, women-owned firms in the last five years, which is more than four times the national average. And, there doesn't seem to be a slowdown in sight.

Asked why she decided to start a business, Ms. Black states, "I was bored and wanted more control over my future financial picture. I reasoned the worst that could happen was that I would have to re-enter the work force. This is the second business I've owned since 1997 and, so far, so good."

If you would like more information on women in business, visit the Center for Women's Business Research at womensbusinessresearch.org.

Yuwanda & Cassandra Black are the owners of EthnicHomeDecor.com. Ethnic Home Decor offers soft home furnishings with ethnic themes at affordable prices.                                                                ###