Authenticity as an Asset: The Competitive Edge for Female Entrepreneurs of Color
🙋🏾♀️ The Rise of Female Entrepreneurs of Color
In 2007 there were a little over 1 million women-of-color-owned businesses in the U.S., according to the 2019 State of Women-Owned Businesses Report, commissioned by American Express. By 2018, that number had grown almost 6 fold to 5.8 million. Then, in just one year alone, from 2018 to 2019, the number of all women-owned businesses grew by 5% while women of color owned businesses grew by double that rate, at 10%. And yet many would still be surprised to learn that the first female entrepreneur was a woman of color.
Madame CJ Walker became the first self-made female millionaire in the U.S. after she began selling her African-American hair-care products in 1904. However, the U.S. Census Bureau did not separate out data on minority-owned and women-owned businesses until 1972, when it reported 402,000 women-owned businesses. Moreover, it wasn’t until 2007 that the number of minority women-owned businesses was explicitly recorded as a sub-sector of women-owned businesses.
From 1972 to 2007, the total number of women-owned businesses grew 19 fold to 7.79 million. From there, the growth of minority women-owned businesses is astounding. While the number of total women-owned businesses grew by 58% from 2007 to 2018, those owned by women of color increased by 163% — nearly three times that rate. Today, women of color represent 39% of the total female population in the United States. However, they account for 50% of all women-owned businesses; of the 1,625 net new women-owned businesses started per day, women of color account for 89% of those new businesses, according to the 2019 State of Women-Owned Businesses Report, commissioned by American Express.
The journey of women of color in entrepreneurship is unlike any other demographic of founders. They not only face significant disparities in funding and resources but also fight gender and racial prejudices to even be considered. While support for female entrepreneurs has come a long way since Madame CJ Walker, there is still a lot to be done to level the playing field for minority female founders. So what are current-day female founders of color grappling with? We asked the founders of FELOH and WESTxEAST everything from how being a woman of color has influenced their journey to what it’s like dealing with investors and startup culture.
🌎 Lived experiences
FELOH was inspired by Co-Founder & CEO Camille’s own journey of going natural in 2016. In undergrad, she cut off her chemically straightened hair to embrace her natural hair texture but found herself lost when finding influencers she could relate to and learn from and products to use for her unique hair texture. She also wanted to support smaller hair care brands and quickly locate Black, LatinX, or LGBTQ+ owned brands but found it challenging to do so.
WESTxEAST was inspired by Co-Founder & CCO Liya’s experience of being a bride of a specific budget in 2017. She was navigating the chaotic and challenging shopping process for her bridal party of 21 people. She could not find anything affordable or identical options to accommodate all of the sizes she needed. She struggled to even find a size 8, which was unacceptable. For her plus-size bridesmaids, vendors would ask for double the price.
From their personal experiences, one thing quickly became apparent to these female founders: options did not exist for people experiencing their pain points, and something needed to be done about that.
“Our lived experiences have informed our niche, and our niche is tied to our mission: FELOH exists to usher in a new era of authentic inclusion in beauty by empowering beauty lovers and independently owned beauty brands through community, connection, and inclusion.”
— Camille Genise, Co-Founder + CEO, FELOH
Both FELOH and WESTxEAST understand their customers’ frustration and, therefore, what their respective industries lack. Not only do they address these needs, but they make their customers feel seen and heard. They represent the fact that “your problems are not only yours.” Just because a company has not risen to address your struggles does not mean your issues are not valid, nor does it mean these struggles do not exist among many.
For decades, the beauty industry has missed the mark when representing women like FELOH’s co-founders. And in the case of WESTxEAST, Co-Founder & CEO Tania explains, “The biggest struggle for the diaspora is being able to source wedding garments when the time comes. It can be heartbreaking when many first generation, second generation, and third generation of South Asians find themselves unable to fulfill these traditions simply because of no access or connection.”
A big part of authenticity is vulnerability and honesty–speaking your truth. When you’re authentic, you do not second guess or repress your true needs despite what the social norm has conditioned you–and the rest of society–to think. While vulnerability can be scary, it leads the way for connection and community as there are others out there who will resonate with and relate to you. FELOH Co-Founder & CEO, Camille, notes, “After years of studying the hair and broader beauty market, I learned: I was not alone.”
🎭 What does authenticity even mean?
Authenticity is a broad and fuzzy term that means different things to different people. In a digital world where so many people hide behind a screen all day, it is even more important to show up authentically. In fact, 86% of consumers say authenticity is important when deciding which brands they like and support, according to research firm Stackla’s 2017 Consumer Content Report. While it is clear that authenticity is essential, what is less clear is how to define it. It is tough to measure, and if pressed to describe it, many would simply say, “I know it when I see it.”
And yet that is what makes authenticity so valuable in business. You can only put on a facade for so long until customers realize you are not representing them authentically. Such is the case with the recent push for “corporate responsibility,” where we have seen more women of color and beauty brands founded by women of color represented in mainstream beauty. However, brands that are only trying to fulfill diversity commitments or meet a certain quota do not truly understand these customers because their business is not rooted in these issues–and customers will be able to sense that lack of authenticity.
Cultural authenticity is even more sensitive and specific. As Tania observes, “We just don’t have the foundation or resources that allow current South Asians to carry out these traditions seamlessly. The main reason for this difficulty was the lost connection to the motherland. As first and second-generation South Asian Americans, we don’t have family in South Asia to help shop for us, tell us what’s trending, or find a reliable tailor.” WESTxEAST closes the gap where that connection to the motherland has been lost — a need that could only be fulfilled by women of color founders like Tania and Liya.
In a way, authenticity is a fail-safe because you cannot fake it, and even if you try to fake it, you cannot for long. Customers will see right through the act and sense you are a phony when their needs are no longer met–when they don’t feel that feeling of “Wow! They hear me. They see me. They get me.”
“In a world that praises quick gains, being authentic often requires a slower path to growth, but we firmly believe our path will provide a foundation for sustainable growth and acceptance in the market.”
— Camille Genise, Co-Founder + CEO, FELOH
🌱 Industries lacking authenticity present an opportunity
A significant reason industries today lack authentic representation is that historically, the people in power all look the same. For instance, the origin of the beauty industry is euro-centric and male-dominated. For decades, corporate beauty products, branding, and marketing have been led by white, male, heteronormative forces. The team at FELOH addresses this through their intentionality, not only in representation through content shown in their social community but also through their efforts to showcase and uplift women-owned beauty brands in their marketplace. Camille and Jacqueline pride themselves in being intentional with every post they make, every brand they align with, every partnership they take, and even every investor they accept funding from.
Similarly, the core principle of WESTxEAST was founded on providing a service for South Asians, like its founders, a product of two cultures: American and South Asian. The company strives to preserve the traditions passed down to generations by their immigrant parents, much of which lies within clothing. Their mission is to protect cultural heritage through clothing — a mission that would not be as deeply understood by someone who does not have the dual identity of being American and Indian. And unfortunately, it is this demographic of people who have historically dominated positions of power in all industries; they make up the majority of investors, advisors, and executives that dictate access to capital and other resources needed for entrepreneurs’ success.
“There is an unsaid norm that investors are the gatekeepers to your success, or investors are ‘experts’ in what has potential and what is worth investing in. I have learned that the only gatekeeper to your success is your will to succeed and that investors are NOT experts in YOUR industry. All that to say, investors are people, and they should be treated like people — not some other worldly being you must impress that can decide your fate!”
— Camille Genise, Co-Founder + CEO, FELOH
However, the entrepreneurship landscape is slowly but surely changing. As more women and people of color are becoming entrepreneurs, they are also becoming investors, executives, and advisors to these founders. Camille explains, “although fundraising continues to be difficult for women and women of color, being a woman has tremendously helped FELOH’s launch. The majority of our user base are women, and most of the brand partners we work with are women. While we are ‘For EVERYONE’S Love of Hair and Beauty,’ our feminine origins have fostered a lot of loving like-mindedness amongst our growing community.”
Four million new jobs and $981 billion in revenue would be added if the average revenue of minority women-owned firms matched that of white women-owned businesses. (2019 State of Women-Owned Businesses Report, American Express)
Therefore, not only is authenticity a fail-safe for customer approval, but it can act as such in the politics of doing business as well. It allows the people in positions of providing capital and opportunities to align better with the businesses they attract. For instance, to an investor who does not fully understand East Asian culture and the importance of these traditions, “WESTxEAST may seem like a niche company,” Tania explains, “but for our clients, we are essential. We’re addressing the fastest growing diaspora: the South Asian Diaspora. The global market opportunity is $32 Billion. We help our customers continue to celebrate milestone events, from weddings to births and beyond, in the same way their parents and grandparents did. We are not niche. We are massive.”
Hence why for female founders of color, there is a great opportunity to tap into markets and customer segments that have been neglected due to the lack of entrepreneurs and businesses to authentically represent these groups.
👩🏽💻 Authenticity in the Digital Age
The opportunity to serve and connect underrepresented groups is even greater in the ever-evolving age of technology, and both FELOH and WESTxEAST embrace this with the digital components of their businesses. Co-Founder & CEO, Camille Genise observes, “word-of-mouth recommendation is still largely the most compelling marketing source in beauty. FELOH is capturing that word of mouth spread in a digital platform to help new indie beauty brands grow their buzz.”
Many businesses hone the power of the internet to connect and build community, but authenticity shows in how businesses use this connection. FELOH is using it to not only capture a digital audience but help this audience empower smaller beauty brands through digital word-of-mouth spread. Social media algorithms today are unconsciously biased and promote beauty aesthetics that aren’t complexion, texture, body size, disability, and acne positivity inclusive, therefore FELOH promotes inclusivity with their own digital platform.
Meanwhile, WESTxEAST has been extremely innovative with their AI-powered measuring tool and 3D visualization software solutions that offer a design-it-yourself platform where customers can select their silhouette, color, and fabric. Customers can then use a phone or tablet to take virtual measurements in just 60 seconds, which produces a 3D rendering of the customer’s avatar. This year, WESTxEAST will be developing a smart factory that is the future of sustainable manufacturing–zero waste, zero inventory, zero human error, and a one-week turnaround time!
To take it one step further, WESTxEAST is incorporating an AI bot. “The traditional click and scroll websites are dying. Customers want to engage in more interactive and collaborative ways in the age of web3. We believe this will improve conversion tremendously,” Co-founder & CEO Tania explains. WESTxEAST plans to drop NFT collections, to build a community that is purpose-driven and community-driven on Discord, and develop a virtual showroom in the Metaverse, along with a computer-generated avatar as their meta-influencer.
“We’re always thinking ahead and making sure we’re serving the next generation of consumers.” With the WESTxEAST design process being entirely digital, it can be done completely at the customer’s convenience. The innovation at WESTxEAST is a result of their commitment to authentically tackling their customers’ needs head-on. Not to mention, it sets WESTxEAST up for success during the pandemic, as COVID-19 did not slow their business down, but rather proved they are the future.
“We’re digital first and always will be. However, we plan to become an omnichannel. We want to be accessible on your laptop, phone and at a brick-and-mortar. I don’t think brands should shy away from in-person experiences. We want to reimagine in-store experience and deliver a more meaningful customer experience that amplifies our brand.”
— Tania Kottoor, Co-Founder + CEO, WESTxEAST
⚡️ Entrepreneurship as a woman of color
Ultimately, authenticity recognizes authenticity not only for prospective customers and business partners but as is the case for founders and their entrepreneurial support systems. It is no secret that female founders face obstacles that their male counterparts do not, and therefore feeling seen and heard is crucial as they go through the process of building their business.
“Entrepreneurship is tough. All entrepreneurs make mistakes, lose money, and contemplate life-changing decisions daily. Add that to being at the intersection of being a woman of color, and you have a whole different set of obstacles, valleys, and seemingly dead-end paths along the journey.”
— Camille Genise, Co-Founder + CEO, FELOH
Finding an authentic connection with someone in a space where the majority has lacked inclusivity is relieving. Still, it goes beyond just the feeling of relief for a female founder of color. Not only do they feel seen and heard, but it opens up opportunities for them to work with people who actually get them and what they’re trying to accomplish. It brings their businesses into the right hands, the right communities, and promotes the unity of the marginalized.
Our founders’ 5 tips for female entrepreneurs:
1)💡 Take your big ideas seriously. Any idea you’ve been blessed to fathom has unbound potential to unfold in every way you can imagine. But the unfolding can only occur if you believe it can happen and work to make it happen.
2) ⚖️ Align over force. Our society praises forcing our way into success, but creation requires give and take, focus and surrendering. When you align with your heart and what is presented to you, you’ll continue to ebb and flow your way to success! You have to find the sweet spot between both energies.
3) 📲 Try to stay informed but not overindulge in too much tech and startup media. Comparison is the thief of joy, and it’s so easy to unconsciously compare your journey to others. But in reality, a flower doesn’t compare itself to the next; it just grows. We are all flowers with our own ability to flourish on our own timing. Remembering that will keep perspective at the forefront of your mind.
4) 🤝 Emphasize relationships and introductions. These two things will be instrumental in your growth as a founder and take you far in your entrepreneurship career. Be part of female founder communities such as Luminary & iFundWomen. These people will see you, get to know you, understand your work ethic, and want to support and truly see you succeed. They will open up so many doors.
5) 🎊 Celebrate your accomplishments. Always have the mindset of being relentless and determined. Tell yourself that if you want to do something, you’re going to do it. Always “keep it moving,” but do not forget to be proud of your accomplishments. Learn to recognize and celebrate your wins often.
Join the FELOH Community on GooglePlay or Apple devices! You can also sign up to be a VIF (Very important Feloh) and choose a free product each month in exchange for reviewing the product and sharing a post in FELOH’s social community. If you are an indie beauty brand looking for a community to grow your business, fill out the FELOH selling partnership form here.
WESTxEAST is raising a pre-seed round of funding and actively looking for strategic investors who resonate with their mission and fit their thesis in supporting an overlooked and underrepresented market. Funding will allow them to further automate and scale. If interested, please reach out to info@westxeast.com
FELOH and WESTxEAST are among the 20 companies selected to be part of the inaugural Friends & Family Winter 2022 cohort. Their founding teams join a nationwide community of motivated and innovative founders receiving business mentorship and guidance from Slauson and Co. and Grid110.
About Grid110
Grid110 is an economic and community development nonprofit dedicated to creating clearer pathways to success for early-stage entrepreneurs in Los Angeles. Their mission is to foster the most thriving, inviting & inclusive community for entrepreneurs by making the entrepreneurial path more equitable, inclusive, and accessible. Through their no-cost, no-equity accelerator programs, Grid110 provides founders with a growing community of fellow entrepreneurs, expert mentorship, and crucial resources. It has supported 215 companies that have raised more than $60 million since its creation in 2015. Ninety-four percent of companies supported by Grid110 are led by women and entrepreneurs of color.
About Slauson & Co
Slauson & Co. is a $75 million Los Angeles-based early-stage venture capital firm rooted in economic inclusion. The firm established Off Slauson as its non-profit arm to support entrepreneurs beyond the investments made by the fund.
