The vast majority of the most vulnerable are black, and when we talk about black entrepreneurs, the financial health of these small entrepreneurs suffers from drastic variations, and survival in the market is increasingly difficult.
Blacks are the majority of the population of Brazil since the 2010 Census and, this year, they broke the 50% mark also in the country's universities. In the third quarter of 2019, according to an estimate by the Brazilian Institute of Geography and Statistics (IBGE), they reached 56% of the approximately 210 million inhabitants, that is, almost 118 million Brazilians declare themselves to be black or brown. When it comes to entrepreneurship, however, obstacles imposed by structural racism prevent this role from replicating in business, especially in a gender perspective, in which black women are still at the base of the pyramid.
Research by the Locomotiva Institute, commissioned by Feira Preta, the largest cultural and Afro-entrepreneurship event in Latin America, shows that the Brazilian black population generates R $ 1.9 trillion in their own income per year. However, among black entrepreneurs, the movement falls to 21% of the total: R $ 399 billion annually (see more in the infographic below). The average income of the black entrepreneur is R $ 1,420, only 19% are from classes A and B and 82% are informal. Among whites, the average income is R $ 2,827, 45% are from the upper classes and 60% have informal businesses.
For black women, entrepreneurship is a necessity to earn more and maintain proximity to the home. Another important factor that particularly affects black women is because, when she goes to the formal labor market, she earns less than men and white women.
In a country where 43% of all income is concentrated in the hands of only 10% of the population, reversing this scenario is both necessary and urgent.