The rise of women-owned businesses and a new definition of success

Terresa Hardaway, a professor and owner of two Twin Cities businesses, says her experiences in traditional workplaces differ sharply from the Black woman-led spaces she creates.

“I think the culture of care is something completely different that I can have and instill in my companies that I don’t necessarily see at an outside institution,” she said.

Women founded nearly half of new businesses in 2024, according to Gusto, a 69% increase from 2019 and the highest rate recorded in its New Business Formation Report. Many of these businesses reflect leadership styles, values and challenges that differ from traditional models.

Tasha Harris is among them. After 28 years in banking and finance, she left corporate America to start a business with her daughter, Kobi Gregory. Harris said her previous career taught discipline and financial stewardship, but also exposed limitations many women face, including glass ceilings, burnout and the constant need to prove themselves.

Launching Kobi Co., built around Gregory’s candle line, felt like a risk worth taking, and an opportunity to create something value-driven, intergenerational and rooted in community.

“Something where creativity and care could sit at the same table as strategy and sustainability,” Harris said.

The mother-daughter duo intentionally built a space grounded in women’s values and Black history, elements Harris felt were missing in corporate environments.

“We say we’re at the intersection of scent, sound and self-care,” she said. “There could never be a corporate experience that could match the heart-centered experiences that we build into our business.”

Harris believes many corporate structures prioritize profit over people.

“That’s just how capitalism works,” she said. “But we think we can do things differently.”

While profit remains necessary, she said Kobi Co. prioritizes people, mental health and community.

“We make sure that people are first over profit, and that wellness is at the forefront of how we work and show up in community.”

Those values are reflected in both their products and physical space, which Harris described as a place where people feel seen and safe enough to exhale.

“That’s what I didn’t have in corporate,” she said.

Hardaway’s businesses, Black Garnet Books and Blackbird Revolt, a creative studio, are similarly rooted in purpose. Blackbird Revolt blends her design background with activism, social justice and Black liberation.

“There are ways that I can show up for employees and culturally connect among team members, and we make time for that,” she said. “That’s different from being at a large institution.”

Support systems are also growing. Women in Entrepreneurship (WE*), a program at the University of Minnesota’s Gary S. Holmes Center for Entrepreneurship, works to help women see themselves as founders.

The program offers mentorship, pairing students with women entrepreneurs.

“This is an opportunity for students who may have never considered entrepreneurship to meet a female founder and see that this is a real pathway,” said Allison McDonald, who helps lead WE*.

The group also hosts events where founders share their experiences and advice. Founded in 2015 by female investors seeking to increase women’s access to funding, WE* continues to address one of the biggest barriers: capital.

“Especially for Black women, we often have to overexplain our vision and how we plan to scale in ways others don’t,” Harris said. “The next step is trusting Black women as long-term builders of economic systems.”

McDonald agrees funding remains critical.

“I think women are ready to start these ventures,” she said. “Now it’s about growth.”

She noted that more women in investment roles could help shift that dynamic, along with firms focused on funding women-led businesses.

McDonald also encounters many women who don’t identify as entrepreneurs, even when running successful ventures.

“They’ll say it’s a side hustle,” she said. “I tell them, ‘You’ve been running a business for 10 years, you are an entrepreneur.’”

She added that men are often more likely to claim that identity.

That perception gap affects founders like Harris and Hardaway.

“We’ve had moments where our company was seen as a hobby before people understood the scale and strategy behind it,” Harris said. “A lot of Black women founders are underestimated in that way.”

Hardaway said she has also experienced clients questioning her team’s expertise.

“People don’t think we have the abilities we have,” she said. “Having to constantly prove that adds another layer of exhaustion to running a business.”

Despite challenges, both women see progress. Harris pointed to more intentional partnerships and equity-focused funding conversations locally.

Several factors are driving the rise in women-owned businesses, McDonald said, including mentorship and the groundwork laid by earlier generations.

“Women before us helped secure a seat at the table,” she said. “Now it’s about making sure our ideas are heard and implemented.”

Hardaway emphasized access and opportunity.

“I think women are natural leaders,” she said. “Having access to resources has helped refine those skills and grow more women-owned businesses.”

Harris believes many women are also redefining success.

“I thought I would climb the corporate ladder,” she said. “But many Black women are now asking: Does this work matter to me? Does it reflect my values and create impact?”

She added that women are recognizing the value of their skills, whether gained through corporate work, caregiving or community involvement.

“We’re not waiting for permission,” Harris said. “We’re building businesses that reflect our lived experiences and our own definitions of success.”

Looking ahead, she believes women entrepreneurs will reshape workplace culture.

“We prioritize flexibility, mental wellness and collaboration,” she said. “Over time, those values can influence broader workplace culture.”

In the long term, she expects more sustainable environments, more intergenerational entrepreneurship and a wider definition of success, one that includes social impact alongside profit.

Damenica Ellis welcomes reader responses at dellis@spokesman-recorder.com.