Understanding Leadership Deficiencies and Capital Challenges in Black Women-Owned Businesses

Abstract

Black women entrepreneurs play a vital role in the U.S. economy, launching businesses across diverse industries more expeditiously than their counterparts. Despite this growth, the lived experiences of Black female entrepreneurs in the beauty industry are permeated by challenges from conception through all stages of business development, including leadership deficiencies, capital constraints, and systemic barriers that threaten sustainability and profitability. The purpose of this qualitative, phenomenological study was to explore how Black women entrepreneurs apply effective leadership practices to access capital, enhance leadership skills, and navigate operational challenges. The theoretical framework for this inquiry was Transformational Leadership Theory, serving as a lens to examine how leadership practices shape business growth and operations. Guided by the research question: What effective leadership practices do Black women entrepreneurs in the U.S. beauty industry employ to access capital for investing in leadership development training, thereby enhancing their leadership skills, mitigating operational challenges, and improving profitability? Data was collected through semi-structured interviews with ten business owners and analyzed using Braun and Clarke’s (2006) thematic analysis. Five key themes emerged: mentorship, education and training, funding, sustainability, and business operations. Findings revealed that limited access to capital, leadership development, and mentorship hindered business growth. Leveraging leadership practices fosters profitability and long-term sustainability. This study contributes to the literature on women’s leadership by highlighting how Black women entrepreneurs can leverage effective leadership practices to expand their businesses and promote equity in underrepresented sectors.