HerMoney with Jean Chatzky: Ep 464 – Why Black Women Are Opening More Businesses Than Ever
Release Date: February 26, 2025
In episode 464 of HerMoney with Jean Chatzky, host Jean Chatzky delves into the inspiring rise of Black women entrepreneurs in the United States. Joined by Tiffany Dufu, President of the Tory Burch Foundation and author of the bestselling book Drop the Ball: Achieving More by Doing Less, the conversation explores the factors driving this entrepreneurial surge, the unique challenges Black women face, and how the community can support their growth and success.
1. The Remarkable Growth of Black Women-Owned Businesses
Jean Chatzky opens the discussion by highlighting a compelling statistic from the Brookings Institution: between 2017 and 2020, the number of Black women-owned businesses increased by nearly 20%, significantly outpacing both women-owned and Black-owned businesses overall.
Notable Quote:
“Black women make up less than 10% of the US population, but they have emerged as the fastest growing group of entrepreneurs in the country.” – Jean Chatzky [03:18]
Tiffany Dufu attributes this growth to entrepreneurship being one of the most accessible pathways to economic mobility and autonomy. She emphasizes that for many Black women, starting a business represents a means to gain economic security and freedom, especially in environments where other avenues like wealth transfer and homeownership are less accessible.
Notable Quote:
“Entrepreneurship is really the last remaining accessible one... it represents freedom in so many ways.” – Tiffany Dufu [04:14]
2. Overcoming Challenges and Barriers
Despite the impressive growth, Tiffany acknowledges the formidable challenges Black women face in scaling their businesses. Access to capital is a significant hurdle, as well as limited networks that can provide mentorship and strategic guidance.
Notable Quote:
“Access to capital, which often can be an accelerator for a business... networks playing a significant role.” – Tiffany Dufu [24:14]
Jean shares her personal struggles with scaling HerMoney, underscoring the difficulty of balancing personal brand management with business growth.
Notable Quote:
“Starting HerMoney and trying to figure out how to scale and grow this company has been the toughest challenge I've ever faced in my working career.” – Jean Chatzky [05:47]
Tiffany expands on this by discussing the necessity for entrepreneurs to evolve both personally and professionally, highlighting that growth often requires learning and adapting in ways that can be overwhelming.
Notable Quote:
“It requires that you evolve and that you learn and that you grow in ways unimaginable.” – Tiffany Dufu [06:04]
3. The Importance of Supporting Black-Owned Businesses
As DEI programs face rollbacks, Tiffany stresses the critical need to support Black-owned businesses to ensure their sustainability and growth. She outlines various strategies consumers can adopt, even acknowledging the systemic barriers like food deserts and limited access to online retailers in certain areas.
Notable Quote:
“If you can buy direct and buy from a Black business, please do that... it's still helping that business.” – Tiffany Dufu [09:44]
Jean brings up the recent social media trends where companies are retracting their DEI initiatives, prompting a discussion on the importance of using economic power to support businesses that align with one’s values.
Notable Quote:
“Put our money where our beliefs are. We have to put our money where our beliefs are.” – Tiffany Dufu [10:18]
4. The Tory Burch Foundation’s Role in Empowering Women Entrepreneurs
Tiffany Dufu elaborates on her role at the Tory Burch Foundation, emphasizing its mission to empower women entrepreneurs through access to capital, education, and a robust community network. She highlights the foundation’s Fellows Program, which significantly supports women in growing their businesses beyond the critical million-dollar revenue mark.
Notable Quote:
“The real bread and butter and heart of what we do is this Fellows Program... ensuring the longevity of my business and without the pressure that a VC firm would have.” – Tiffany Dufu [19:33]
Jean praises the program and encourages listeners to consider applying, especially those who believe they have a unique business idea but are hesitant to take the plunge.
Notable Quote:
“...if you're thinking, 'I have that secret sauce,' but afraid to give up the paycheck, consider testing your ideas with MVPs.” – Tiffany Dufu [13:36]
5. Practical Advice for Aspiring Women Entrepreneurs
Tiffany offers actionable advice for women contemplating entrepreneurship. She advocates for starting with a Minimum Viable Product (MVP) to test market response before fully committing and highlights the importance of due diligence when considering purchasing an existing business.
Notable Quote:
“Figure out what is the small version of what it is that you want to put out into the world and start playing with that just to see how people respond.” – Tiffany Dufu [14:15]
She also discusses the advantages of buying an established business, such as reduced volatility and existing customer bases, while cautioning entrepreneurs to thoroughly assess financials and market position.
Notable Quote:
“Purchasing an existing business can be a smart and strategic move and one that in some ways can de-risk you from the volatility of a brand new enterprise.” – Tiffany Dufu [15:28]
6. Leveraging Resources and Building Networks
Highlighting the importance of networks, Tiffany explains how the Tory Burch Foundation provides access to a community of experts, mentors, and advisors that help women navigate the complexities of business growth. She underscores that beyond capital, having a supportive ecosystem is crucial for overcoming challenges and accelerating business success.
Notable Quote:
“Having access to networks and people who can help you navigate... can help you to grow your business faster.” – Tiffany Dufu [24:14]
Additionally, she introduces the foundation’s Funding Finder tool, designed to help women entrepreneurs identify suitable funding sources based on their specific business needs and stages.
Notable Quote:
“The Funding Finder was created to bring transparency to the process of securing funding.” – Tiffany Dufu [26:04]
7. Balancing Ambition with Practicality
Tiffany and Jean discuss the delicate balance between ambition and practicality in entrepreneurship. Tiffany shares insights from her book, Drop the Ball, emphasizing the importance of delegating tasks and focusing on one’s highest and best use to drive meaningful progress.
Notable Quote:
“Ask for help and move to a place where you can focus on your highest and best use in order to move the needle forward.” – Tiffany Dufu [28:13]
Jean relates this to everyday scenarios, reflecting on the need to let go of perfectionism and accept that "good enough" can often be sufficient to achieve desired outcomes.
8. The Future of Black Women in Business
Looking ahead, Tiffany expresses optimism about the resilience and integrity of Black women entrepreneurs. She acknowledges the current political and economic uncertainties but remains hopeful that continued investment and support will empower Black women to drive economic and community progress.
Notable Quote:
“Black women have always brought their integrity, their commitment to community, their commitment to doing what's right to move their communities forward.” – Tiffany Dufu [31:53]
Jean concurs, highlighting the essential role small businesses play in the national economy and the critical need for ongoing support and investment in women-led enterprises.
Conclusion
The episode wraps up with heartfelt acknowledgments of Tiffany’s impactful work at the Tory Burch Foundation and a reminder of the resources available to aspiring women entrepreneurs. Jean encourages listeners to take actionable steps towards supporting Black women-owned businesses and leveraging available tools to foster their own entrepreneurial ventures.
Notable Quote:
“We have a lot of economic buying power and we should absolutely leverage it.” – Tiffany Dufu [10:18]
For those inspired by the conversation, Tiffany invites listeners to explore fellowship opportunities and utilize the foundation’s resources to accelerate their business ambitions.
Resources Mentioned:
- Tory Burch Foundation: torybirchfoundation.org
- Funding Finder Tool: Available on the Tory Burch Foundation website
- Books:
- Drop the Ball: Achieving More by Doing Less by Tiffany Dufu
Programs by HerMoney:
- Finance Fix: Ultimate money makeover program
- Investing Fix: Investing club for women meeting bi-weekly on Zoom
This episode serves as an empowering guide for Black women aspiring to entrepreneurship, providing both inspiration and practical strategies to navigate and succeed in the business world.