As we celebrate Women's History Month, it's crucial to recognize the ongoing need to address the wealth gap in Arkansas. The Women's Foundation of Arkansas (WFA) stands at the forefront of this movement with our Women's Economic Mobility Hub (WEM Hub), an innovative program specifically designed to empower Black women business owners and bridge the gender and racial wealth gaps in Arkansas.
Research shows that Black women often struggle to gain a foothold in the business world and face barriers to accessing capital, finding mentorship opportunities and gaining crucial business knowledge. To better understand these issues and many others affecting women's business success, in 2018 the WFA commissioned a report, "Economic Indicators for Women in Arkansas: State, Region and County." The report showed that the Delta region has both the highest rates of women living below the poverty line and the most women-owned businesses in the state.
While often smaller in size, women-owned businesses are particularly crucial, especially in rural and small-town Arkansas. They are the heart of Main Streets and the foundation of Arkansas' economy. In fact, according to the U.S. Small Business Administration, small businesses represent more than 99 percent of the state's business landscape.
Moreover, business ownership has been applauded as one of the fastest, most effective ways to create generational wealth, a key strategy in closing the wealth gap.
This is where the WFA's WEM Hub takes center stage. We've leveraged the findings from our own research and that of others to build a specialized program to support Black women business owners. The WEM Hub tackles the issues Black women business owners face and provides the resources to help their businesses not only survive, but thrive.
The six-month program offers a comprehensive toolkit for success, including technical assistance, business resources and $5,000 in unrestricted funding to help women scale their businesses. WEM Hub participants gain access to expert advice in critical areas like accounting, legal services and business development. The program fosters growth through ongoing mentorship, peer-to-peer learning and leadership development workshops. Additionally, the WEM Hub connects participants with financial institutions, opening doors to essential capital.
Our multifaceted approach recognizes that Black women entrepreneurs often face additional hurdles, such as systemic bias in obtaining funding and navigating other business structures. The WEM Hub provides a supportive network, a community where women can gain practical knowledge and advice while also learning from each other's experiences, sharing challenges and celebrating victories. This sense of belonging can be a game-changer, fostering confidence and resilience in the face of obstacles.
The WEM Hub's benefits extend far beyond individual businesses. When Black women entrepreneurs succeed, they create jobs, contribute to their communities and become role models for future generations. A thriving business owned by a Black woman sends a powerful message to all: Success is within reach, regardless of background, race or gender.
This is economic empowerment at its finest, and its ripple effects will be felt throughout Arkansas for years to come.
The WEM Hub's success hinges on collaboration and innovation. While the WEM Hub was created specifically to serve the business needs of Black women in Arkansas, the model could easily be replicated by other organizations for other demographics facing economic challenges. The WFA actively encourages this replication and would love to see more targeted initiatives designed to support specific needs and groups across the state.
Women's History Month is about more than just remembering the past. It's a call to action for the present to ensure a brighter vision for the future. The WEM Hub exemplifies this spirit--honoring the legacy of trailblazers while empowering and nurturing the next generation of Black women entrepreneurs.
If you share the WFA's vision and have expertise in small-business support, reach out to us. Together, we can build on the success of the WEM Hub and foster a thriving ecosystem of women-owned businesses across the state. By supporting targeted initiatives like the WEM Hub, we invest in a stronger economic future for Arkansas.
More information is available at womensfoundationarkansas.org.
Anna Beth Gorman is CEO of the Women's Foundation of Arkansas.