Black Women Entrepreneurs: Brazil's Formalization Gap

Why are so few Black women entrepreneurs formalized in Brazil?

Despite representing 49% of all women entrepreneurs in Brazil, only 45.6% of Black women entrepreneurs have formalized businesses — compared with 60.3% among white women entrepreneurs. The data comes from the 2025 Women Entrepreneurs and Their Businesses survey (IRME-2025), conducted by the Instituto Rede Mulher Empreendedora (IRME).

What does informality actually cost them?

Without a CNPJ (business registration number), entrepreneurs face serious obstacles: they cannot issue tax receipts, struggle to access new markets, and are denied credit on favorable terms. The survey found that 74.5% of women who obtain financing use their personal CPF rather than a business CNPJ — a situation that typically results in higher interest rates and a dangerous mix of personal and business finances.

How large is the income gap?

According to Sebrae national Afro-entrepreneurship manager Fau Ferreira, a Black woman entrepreneur earns 59% less than a white male entrepreneur. Sebrae data also shows that 80.6% of Black women entrepreneurs are concentrated in commerce and services — sectors with lower added value — which deepens the inequality.

Are there any positive signs?

Yes. Despite structural barriers, 57.3% of Black women entrepreneurs keep their businesses debt-free. And 58.3% are the primary breadwinners for their households, underscoring the critical role these ventures play in generating income and economic autonomy.

A real story: Toque de Criolla

Wiara Carvalho, 34, from São Paulo, launched her sustainable accessories brand Ateliê Afro Toque de Criolla in 2021 with just R$700 in starting capital. She developed her own technique to turn discarded milk cartons into earrings covered with African fabrics. Products range from R$12 to R$50, with 90% of sales made in person at cultural fairs and events.