How women of color are driving entrepreneurship in the life sciences and beyond

Women-owned businesses are on the rise in the U.S., particularly among some women of color.?The U.S. Census Bureau reports that women own around 20% of all employer businesses, which are ones with paid employees. ?Meanwhile, 17% of Black women are starting or currently operating a business. And Hispanic-owned businesses grew by 3% over a one-year period, making up nearly 6% of all businesses in the U.S. Anecdotally, women of color say they're starting businesses because they're undervalued in the corporate world—there are fewer opportunities, less flexibility, and lower pay.

?The COVID-19 pandemic has hit women-owned companies especially hard; many aren’t as well-financed as their male-owned counterparts. But they continue to find opportunities for growth. And some women are even starting businesses while continuing to work in other full-time careers.

Abena Osei-Wusu, MD, FACC, FSCAI is an interventional cardiologist with experience in clinical development, currently working as a medical director at a large global pharmaceutical organization. She also has a lifelong love of fashion, designing and sewing clothes since she was a teenager. Over time, people began to take notice, asking where they could buy her stylish bespoke outfits.

?Osei-Wusu opened an Etsy store in 2015 focused on wax print clutch purses. When the pandemic hit and N95 masks were in short supply, she pivoted to designing well-fitted cloth masks with filters. This fall, she will launch her eponymous fashion line, Abena Afra Designs, which infuses her Ghanaian roots into an African-inspired luxury clothing brand for women.

?“Abena Afra Designs is me finally being able to bring to market a curated capsule collection of tailored pieces designed for the woman who seeks to make a bold statement,” she says.

?Osei-Wusu is scaling her business modestly, acknowledging that she still has a lot to learn about the fashion industry.” It’s a cutthroat business with really tight margins, so I am approaching it with a smaller launch and hope to scale the business over the next several seasons.”

Black women may face other challenges as they grow their businesses. While they’re more likely to start a new business venture than white people, Black women are significantly less likely to run mature companies. An analysis by Babson College and the Global Entrepreneurship Monitor (GEM) shows there could be several reasons for this disparity. According to researchers, Black women often start “small, informal businesses with low margins in crowded competitive contexts” such as retail. They may also lack access to critical resources and capital, instead relying on their own money to get businesses off the ground.

?Many female entrepreneurs also juggle the responsibilities of running a business with having a family. Osei-Wusu, who is married and has a 5-year-old son, says her pharma career demands fewer hours a week than her previous clinical work. However, now that she manages a business, her time is still limited. She says the key to balancing it all is realizing she can do everything, just not at once.?

“There are times I'm going to have to put the business stuff to the side for a little bit and focus on mom stuff. I don't ever want to paint an unrealistic picture that I'm somehow doing all of these things extremely well at the same time. There has to be some give and take.”

?So, what else does it take to launch and grow a successful business? First, do your homework. Figure out if there’s a viable market for your product or service. You believe you have a great business idea, but will your potential customers? Think about conducting market research to help pinpoint specific segments within your target market and distinguish your business from your competitors.

?“Are there gifts and talents inside of you that the world needs to be privy to? And have you found a way to connect that to an audience that would pay for it?” says Katrina N. H. , co-founder and partner at Artemis Factor, a female-led project management consulting firm for pharmaceutical clients. “If there's no market for it, it's a hobby.”

?High previously worked in research and development and on the commercial side of the pharmaceutical industry. She and four colleagues founded Artemis Factor in 2018 after being laid off during a company restructuring.

?The consulting firm brings deep, pharma-lived experience to the industry. And over the past four years, it has snowballed, surpassing the founders’ initial three-year goals in only three months. The business has continued to thrive, even during the COVID-19 pandemic and recent economic downturn.

?High advises prospective business owners to prepare financially before leaping into entrepreneurship. Save enough money for six to 12 months' worth of expenses if possible. This cushion will allow you to focus fully on your business instead of personal financial worries.

?“Have an honest conversation with yourself about what exactly are the necessities and the nice-to-haves,” High says. “Be aware of your risk tolerance and what you’re willing to forego. What could you go without to pursue this dream?” High and Osei-Wusu also suggest:?

●????Have a clear plan of action. Break tasks down over a year, then months, weeks, and days to make them more manageable.?

●????Work more on your business instead of in it. Try not to get bogged down with the day-to-day minutiae of running a business. Instead, zoom out and look at the big picture. “I need to step outside of my work, not be emotionally attached to it,” Osei-Wusu says. “Look at it and criticize it, recognizing that I'm no longer creating a product for myself. I'm creating a product for my intended audience.”

?●????Find a supportive circle. Friends, family, other entrepreneurs, and professional organizations like Women of Color in Pharma are excellent sources of advice and support.?

High joined WOCIP as she was starting her business. She says, “If this experiment failed, I knew I had a network of women I could lean on to help pull me back up. And that was a large part of having the confidence to do it.” She tells other women not to be afraid to take a chance to become business owners. “If it’s on your heart, do it. But do it thoughtfully.”