Limited capital remains the top barrier to business success for black entrepreneurs in the wine industry, according to half of respondents to the Terroir Noir: 2023 Study of Black Wine Entrepreneurs, published by Dr. Monique Bell, researcher and professor at California State University, Fresno.
Most survey respondents are wine producers. In addition to questions about entrepreneurial motivations, business challenges, and profile data, the survey captured information about post-pandemic recovery and perceptions of the wine industry’s inclusion and equity efforts since the 2020 social justice movement.
“The survey responses highlight some progress, yet as targeted funding for women, who represent more than three quarters of survey respondents, and people of color entrepreneurs comes under threat, it’s more important than ever for the wine industry, lenders, trade and government organizations and consumers to bolster these businesses,” said Bell in a statement.
The report also found:
• After limited capital, respondents cite distribution challenges as the next largest barrier,
• Only 50 percent of respondents were profitable in the most recent fiscal year,
• About half of respondents are neutral or disagree that the wine industry is taking meaningful action to increase inclusion for Black wine entrepreneurs, Black consumers, and Black wine professionals,
• Notably, 65 percent of respondents somewhat or strongly agree that their businesses have directly benefitted from industry diversity, equity, and inclusion initiatives,
• Nearly 80 percent were motivated to start their businesses “to change the current situation for the better.”
The report also communicates the buying power and potential of Black wine consumers.
“Overall, particularly in the U.S., the industry is seeking growth areas; partnerships with and investments in these entrepreneurs can yield win-win results and competently serve diverse audiences,” said Bell.
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