BIPOC Women Are Getting Left Behind in Business: Here Are the Crazy Stats & What to Do About It

From startup funding to leadership representation, the numbers don’t just highlight a gap—they reveal a chasm. Let’s break down the data and talk about what actually needs to change.

The Stats: A Wake-Up Call

1. Venture capital is nearly off-limits to BIPOC founders. In 2023, less than 1% of venture capital funding in the U.S. went to businesses founded by Black and Latina women combined. According to ProjectDiane, while Black women are among the fastest-growing groups of entrepreneurs, they receive the least funding per deal on average.

2. Corporate leadership? Almost nonexistent

Only 4% of C-suite executives in Fortune 500 companies are women of color. When you break that down further, the numbers get even bleaker: there are only a handful of Black, Indigenous, or Latina women in executive positions across the country’s biggest companies.

3. Systemic bias is still alive and well

Studies have shown that resumes with “ethnic-sounding” names receive far fewer callbacks. Meanwhile, BIPOC female entrepreneurs report higher rates of being denied loans and gettingasked to provide more collateral or stricter terms than their white counterparts.

4. The pay gap is a chasm

For every dollar earned by white men in the U.S, Latinas earn $0.52, Native women earn $0.55, and Black women earn $0.66. This pay disparity directly impacts their ability to invest in their own businesses, access capital, or even take the financial risk of entrepreneurship in the first place.

Why This Matters

It’s not just about fairness—it’s about economic growth. According to a McKinsey report, closing the racial and gender equity gap in business could add $4.3 trillion to the U.S. GDP by 2030. BIPOC women aren’t just “diverse hires”—they are economic powerhouses being held back by systemic forces.

What Needs to Change (Now)

1. Fund the future

Venture capital firms and angel investors must commit to funding BIPOC women founders—not as charity, but as smart investments. We should create funds specifically targeting these entrepreneurs and hold fund managers accountable for portfolio diversity.

2. Build inclusive pipelines

Companies need to go beyond DEI workshops and create real pathways for BIPOC women to rise through leadership ranks—with mentorship, sponsorship, and access to stretch opportunities—opportunities that might be slightly outside a candidate's skillset—that lead to the C-suite. It’s far more common for white male candidates to be given room to grow and tasks that challenge them because with inherent bias comes assumed competency – a phenomenon rooted in racism.)

3. Fix the infrastructure

Banks and financial institutions must revise lending criteria that disproportionately disadvantage women of color. Community development financial institutions (lending institutions that focus on community-driven investments, often at affordable rates or for small businesses) and mission-driven lenders should step in where traditional banks fail.

4. Change the narrative

Media, business conferences, and educational institutions need to spotlight BIPOC women entrepreneurs and leaders. Representation matters—not just in the boardroom, but on the front page and main stage.

The Bottom Line

The idea that BIPOC women “just need to work harder” is a myth. The data tells the real story: these women are already working harder, innovating faster, and starting businesses at higher rates—but they’re doing it with far fewer resources.

This isn’t a pipeline problem. It’s a power problem. And it’s long past time we did something about it. Want to support BIPOC women in business? Start by investing in their companies, hiring them for leadership roles, and calling out inequities when you see them. Change won’t come overnight, but with sustained effort, we can begin to level the playing field.