request our brochure

The main reason black people open their own businesses is not what it should be

December 13, 2022

Organizations are changing when it comes to diversity and inclusion. Just as well. But negative experiences in the labor market still leave major scars that we need to look at: the lack of opportunities to hold leadership positions, the lack of appreciation, racism and discrimination have become decisive factors when black people exchange formal employment for their own business. 

This is what a Google survey in partnership with Box 1824, done between July and October this year, shows. According to the study “#CoisaDePreto: A survey on the real journey of Brazilian Afroentrepreneurs”, was split into qualitative and quantitative stages, and interviewed 1,000 entrepreneurs from all over Brazil, 500 of them white and 500 black (adding black and brown people who identify themselves as being of African descent). 

92% of the black respondents said that racism still weighs on their initiative to start their own business. In addition, black entrepreneurs face greater financial difficulties and suffer more from debt when compared to whites: 21% of black respondents have between 60% and 90% of their business income committed to debt. The percentage of whites with the same amount committed is much lower, 14%. The difference is bigger when considering those who started their business less than 6 months ago: 17% of blacks have 100% of their income committed to debt, while the percentage among whites is 9%.

The study also showed that despite the financial difficulties and the impact of the pandemic on business, the majority remains optimistic about the economic recovery – 73% of black respondents and 74% of whites think their businesses will grow in the coming months. Special mention goes to 45% of blacks who believe it will grow a lot.

The biggest challenges for Brazilian entrepreneurs according to the data are: attracting or keeping clients and dealing with the unpredictability of sales, that is, the fluctuation of cash.

Source: BOX1824