The Money Ain’t Flowing

 7 Financial Hurdles Black Female Entrepreneurs Are STILL Climbing in 2025

Hey Sis, Let’s talk real.

We’re out here building brands, making moves, and showing up in boardrooms and on IG Lives with full faces, fire offers, and a prayer life. But even with all that brilliance, Black women in business are still hitting walls — not because we’re not smart enough, not bold enough, or not ready — but because the financial playing field is still far from fair.

And listen… these aren’t just my opinions — the stats are backing it up. So if you’ve been feeling like you’re hustling harder but growing slower, you’re not crazy — you’re just swimming upstream in a system that’s overdue for a Holy Ghost shake-up.

Let’s break down the 7 biggest money challenges Black women entrepreneurs are facing in 2025 — and yeah, I brought receipts.

1. VC Money? Sis, Where?

Let’s just say it: venture capital ain’t vibing with us — yet.

Only 0.34% of all U.S. VC funding goes to startups founded by Black women. That’s not a typo. Out of billions, we’re seeing literal crumbs.

👑 Case in Point: Melissa Butler, founder of The Lip Bar, walked into Shark Tank and got told her bold, beautiful cosmetics line wasn’t a “real business.” Fast forward: she’s in Target and closed a $6.7M funding round. But that didn’t come easy — she bootstrapped for years because no one would bet on her.

Now in 2025, even grant programs built to serve Black women (like the Fearless Fund) are under attack. Like, what?! They’re trying to tell us we can’t even fund ourselves without catching lawsuits. The audacity.

2. Bank Loans Be Ghosting Us

Here’s a hard truth: Black women are 3x more likely to be denied business loans than white entrepreneurs. We walk in prepared, with the numbers and the plan… and still get hit with a “no.”

👭 Real Talk: Debra and Gwendolyn Washington tried to open a bakery in Kansas City. Strong credit, business plan, the whole shebang. Every bank still said no. Why? Because they didn’t already have 70% of the money in hand. Excuse me — isn’t that why we came to the bank?!

This isn’t about being unqualified. This is about a system that keeps moving the goalposts when we show up ready.

3. Credit and Collateral? That's Cute — Until We Ask for Funding

Even when we do apply, lenders want us to hand over our firstborn child and the deed to our grandma’s house as collateral. Meanwhile, many of us are first-gen wealth-builders — we don’t have real estate sitting around.

And get this: 40% of Black business owners skip applying altogether because they know the system’s gonna say no.

👩🏾‍💻 Example: Farah Allen, founder of The Labz, couldn’t even get a loan because she had just left her job to build her business full-time. No income? No loan. But how do we build without support? She had to borrow from her momma’s savings to get started.

This is what bootstrapping looks like for us — not cute Pinterest quotes, but sacrificing retirement and family funds.

4. Cash Flow = Stress Flow

If it feels like your business is always one late invoice away from disaster, you’re not alone.

📊 80% of Black business owners have less than three months of cash reserves. Nearly 40% have less than one month. That means if your client flakes or sales dip for a week — you’re scrambling.

And what do we do? We swipe the business card… and then can’t pay it off. Now we’re racking up interest and still trying to make payroll.

Many of us have never had a line of credit or a safety cushion. We ARE the cushion.

5. Using Our Own Money… Because No One Else Will

Let’s be real: we are the bank, the investor, the angel, and the CEO.

👛 61% of Black women entrepreneurs fund their business with personal money. Translation: we’re draining our savings, maxing out our cards, and skipping paychecks to keep the dream alive.

But here’s the gag — we’re doing this with less generational wealth than most. So while others raise a “friends and family” round, we’re just praying we don’t overdraft this month.

And when we do succeed? We’ve risked it all to get there. That’s grit, but it’s also a setup to stay behind the curve.

6. We Start Big Dreams, But Get Boxed into Small Profits

Black women are the fastest-growing group of entrepreneurs — we own over 2 million businesses. But those businesses average just $47,300 in revenue, while white women-owned businesses average $192,600. That’s a 4x difference, sis.

💸 If we had access to the same capital and opportunities? We could be adding $361 billion to the U.S. economy.

Instead, many of us are forced to play small because the money to grow — to hire, market, and scale — just isn’t there.

7. Bias Still Blocks the Blessing

Even when we show up polished, prepared, and profitable, there’s often a but…

➡️ “But we’re not sure you’re scalable.”
➡️ “But this seems risky.”
➡️ “But we’re cutting back on DEI programs this year.”

You’ve felt it — the energy shift when you walk into that investor meeting or try to get that big contract. Add to that the current backlash against programs created for us, and it’s like the door we just opened is now being slammed shut.

⚠️ The Fearless Fund was literally sued for offering grants to Black women. And companies like Target? Scaling back diversity spend due to political pressure.

That means the few doors that were cracking open? Some are closing again. And it’s a gut punch.

Final Word: Sis, You’re Not the Problem. The System Is.

If you’ve been wondering why it feels 10x harder to grow your business, now you know — the stats don’t lie.

But here’s what I also know:
✨ We’re resilient.
✨ We’re resourceful.
✨ And we will find ways to build, thrive, and WIN.

Yes, we’re facing real financial challenges. But we’re also creating our own tables, building community wealth, and learning tools like AI to scale our brands without begging for a seat at somebody else’s.

💡 Sis, it’s time to outsmart the system.

If the money won’t come to you, let’s use AI to multiply your content, automate your brand, and position you like the boss you already are.

Join the AI by Design Academy and learn how to:
✅ Use ChatGPT to write your sales pages, emails, and social posts in minutes
✅ Create digital products, journals, and planners that sell (while you sleep!)
✅ Build systems that work for you — even if tech scares you

You don’t need to grind harder — you need smarter strategies powered by tech that works for you.

Let’s unlock that next level, together.

👉🏾 Visit aibydesignacademy.com and get in while the price is still low.

Until next time, Be Blessed, Be Fruitful, and Multiply!

Tesha D. Colston | AI Business Consultant and Your Biz Bestie!