How Black Women Founders Keep Moving Forward

For nearly a decade, Black women have been the fastest-growing group of entrepreneurs in the country.

This year brought a stark reversal: stalled momentum, shrinking support, and a rise in business closures among Black women founders.

After a surge of public support following the death of George Floyd in 2020, many Black-owned companies benefited from new programs, supplier diversity initiatives, and unprecedented corporate attention. But that wave has since receded.

With Donald Trump’s second term and his directive for corporations to roll back diversity, equity, and inclusion efforts, Black entrepreneurs felt the fallout.

Retailers like Walmart and Target have scaled back DEI initiatives. Tariffs implemented by President Trump raised operational costs, disproportionately affecting Black-owned companies, according to Essence.

Combined with a tougher economic climate, the result has been devastating for many Black women–owned CPG brands.

To better understand the moment, we spoke with members of our community who were willing to share their experiences honestly and vulnerably. Here are their stories.

Rachel Ransom, KRAVE

When Rachel Ransom and co-founders Angel Hobbs and Aliyah Newman launched KRAVE, they entered the hard-seltzer market with a mission: offer premium, affordable drinks in an industry where Black women were nearly invisible.

Their momentum was real as they earned the Audience Choice Award at the 2025 Pitch Competition and secured more than 150 new retail accounts.

But success has come with a high operational cost. Growth outpaced infrastructure. With limited staffing and resources, early enthusiasm didn’t translate into lasting, scalable support.

Instead, the team has found themselves constantly needing to “prove it” with data, in ways other brands often don’t.

Still, Rachel, Angel, and Aliyah have pushed forward with the help of a strong mentor network. Rachel’s advice to fellow Black women founders is to build strong relationships with the key vendors that help your business run day to day.

“Delays, price increases, and mistakes are inevitable,” Rachel said. “But solid relationships mean vendors actually want to contribute to your success.”

Katrina Golden, Lil Mamas

When Katrina Golden founded Lil Mamas in 2019, friends encouraged her to turn her homemade desserts into a real company. But running a food business in 2026 looks and feels different.

Cash flow has tightened, and sales have slowed. The economic strain has forced her to operate with far more caution.

What has kept her going is reconnecting with her church community, a source of emotional grounding, support, and encouragement. Katrina still encourages other Black women to consider entrepreneurship as a career path.

“Go for it,” she said. “Take the leap.”

Emily Edwards, Paradise®

Emily Edwards founded Paradise® in 2018 after burning out from her career in mental health.

Inspired by her mother’s kitchen, Emily decided to develop plant-based spreads so families with food allergies could enjoy the same feelings and love she grew up with through food.

But building a CPG brand as a Black woman remains an uphill climb.

“There are more conversations about inclusion and more Black women launching brands, but CPG is still dominated by men, especially in leadership, capital, and decision-making roles,” Emily said. “The gap between conversation and actual investment is still very real.”

In 2025, managing growth with tight cash flow stretched her to her limits. What helped was learning to protect her time and energy.

“Now, I focus less on trying to fit into spaces that weren’t built with me in mind and more on building relationships and strategies that support long-term growth,” she said.

Amber Ferrell-Steele, Timeless Vodka

Amber Ferrell-Steele founded Timeless Spirits and Drinks out of a desire to create smoother, premium beverages that truly reflected her community.

Visibility for Black women founders has increased, but the foundational challenges remain capital, limited access to strategic networks, and the constant pressure to prove value.

What has helped Amber the most is mentorship, financial education, and founder-focused programs that clarified strategy and sharpened decision-making.

Connecting with experienced operators and fellow entrepreneurs has provided comfort and guidance during periods of uncertain growth. Her advice to other Black women founders is to stay grounded in lived experience.

“Trust your vision and stay resilient through the ups and downs,” Amber said. “Focus on building a strong foundation, learn continuously, and don’t be afraid to ask for help or pivot when needed. Your perspective and story are powerful, and consistency will carry you far.”

Hilary Cocalis, Sipwell Wine Co.

With women owning just 13% of wineries, and Black women only 1%, Hilary Cocalis built Sipwell Wine Co. on a commitment to representation from day one. Hilary and Sipwell were named Runner-Up at the 2023 Pitch Competition.

But by 2026, shrinking DEI initiatives have made navigation harder.

“Over the past five years, the pullback and politicization of DEI efforts have made it more difficult for Black-owned brands to show up,” Hilary said. “Funding sources, retail programs, and initiatives that once supported diverse founders have shrunk or disappeared, which has had a real impact on our small business.”

 She remains hopeful, knowing that consumers are more empowered than ever to align their spending with their values. And she’s not afraid to take up the space.

“Early on, I felt like I had to prove I belonged in every room,” Hilary said. “Now I walk in knowing I bring a valuable perspective as both a founder and a woman of color, building in an industry that needs fresh voices.”

Morgan Reid, AroDough

As a trained counselor and Black woman, Morgan Reid understood firsthand how stigmatized mental health conversations can be in Black and Brown communities. She created AroDough, a soft, squeezable dough infused with essential oils that helps people naturally relax, renew, and re-energize - anytime, anywhere.

When she started in 2020, there was a surge of support for Black women founders; by 2026, many of those doors had quietly closed. The pullback wasn’t surprising as Morgan had long learned that brief windows of support were not guarantees. However, it sharpened her understanding of how deeply Black women were expected to build within systems never created for them.

“Founder culture often celebrates resilience and adaptability as learned skills,” Morgan said. “For many Black women, those aren’t learned, they’re lived. We’ve always had to build, pivot, and persist within systems that were never designed with us in mind.”

For Morgan, her community helps keep her going.

“We talk about support, but when it comes time to actually show up, that support doesn’t always materialize,” Morgan said. “My community did. Whether through reposting, sharing my store link, or buying AroDough to check off their holiday lists, they showed up in real ways.”

According to 19th News, Black women started 2025 with an unemployment rate of 5.4%. By year’s end, it was 7.3%, the highest in four years, matching the rate white women experienced during the lowest point of the Great Recession.

As job stability weakens, more Black women are turning to entrepreneurship. But these new ventures will only survive if the ecosystem supporting them is strong.

Mentorship, knowledge-sharing, and access to capital are not nice-to-haves; they’re determining factors.

Bottom Line: All founders face hurdles. For Black women, those hurdles are magnified.

Crunchbase reported that in 2024, only 0.4% of all U.S. startup funding went to companies with a Black founder or co-founder. Meanwhile, overall startup funding rose slightly. Black women aren’t just building businesses; they’re building infrastructure, culture, jobs, and economic possibilities. And as a community, it’s on us to amplify, support, and champion them.