Cosmetology programs teach students the craft: cutting, coloring, styling, but one critical piece is often missing: how to run a business. As EsiSonia Sotoglo, CEO of the Angela Johnson Leadership Foundation (AJLF), points out, “They teach us everything but how to be entrepreneurs, which is alarming because the cosmetology trade provides the foundation for self-employment.”
This gap in financial education has real consequences. A recent spending tree analysis revealed that minority business owners, particularly Black entrepreneurs are denied loans at an alarming rate of 39% compared to their counterparts. While credit scores and debt-to-income ratios are often cited as reasons, the deeper causes include financial illiteracy, decades of being labeled “high-risk”, and systemic barriers to accessing capital. Even when funding is secured, these entrepreneurs often face predatory repayment terms, making it even harder to build sustainable businesses.
In Maryland, there are 4,523 beauty, cosmetics, and fragrance businesses (NAICS 446120). Although no racial breakdown is available, a significant portion are likely minority- or Black-owned. These businesses stimulate the economy, create jobs, and strengthen communities, yet many are held back simply because they lack the tools, knowledge, and fair access to capital needed to grow.
The need to address this is urgent. According to Forbes, “Entrepreneurship is particularly important to Gen Z. In a 2021 study, 53% of Gen Z respondents hope to run businesses in the next 10 years.” If the next generation aspires to own businesses, we must equip them with financial literacy, business education, and easier access to funding to level the playing field across all communities.
At AJLF, our mission is to empower emerging beauty professionals with funding, professional development, and essential resources to help them launch and sustain their businesses. Cosmetology is more than a trade, it is a launchpad for entrepreneurship. By prioritizing financial education and equitable access to capital, we can ensure the next generation of beauty professionals not only survive but thrive, building businesses that endure, grow, and make a lasting impact in their communities.
References
● Sophinos, L. (2023, May 30). A Beautiful Path to Entrepreneurship: It’s Time to Change Our Perception Around Beauty and Wellness Trades and Tech. Forbes. Retrieved from: https://www.forbes.com/councils/forbestechcouncil/2023/05/30/a-beautiful-path-to-entrep reneurship-its-time-to-change-our-perception-around-beauty-and-wellness-trades-and-tech/
● Lindzon, J. (2021, May 11). Why Gen Z is so keen on entrepreneurship, and what that means for employers. Fast Company. Retrieved from:
https://www.fastcompany.com/90631769/why-gen-z-is-so-keen-on-entrepreneurship-and-what-that-means-for-employers
● Survey Shows High Loan Denial Rates for Black-Owned Businesses. (n.d.). NBC News. Retrieved from:
https://www.nbcnews.com/now/video/survey-shows-high-loan-denial-rates-for-black-own ed-businesses-250391109880
Cosmetology programs teach students the craft: cutting, coloring, styling, but one critical piece is often missing: how to run a business. As EsiSonia Sotoglo, CEO of the Angela Johnson Leadership Foundation (AJLF), points out, “They teach us everything but how to be entrepreneurs, which is alarming because the cosmetology trade provides the foundation for self-employment.”
This gap in financial education has real consequences. A recent spending tree analysis revealed that minority business owners, particularly Black entrepreneurs are denied loans at an alarming rate of 39% compared to their counterparts. While credit scores and debt-to-income ratios are often cited as reasons, the deeper causes include financial illiteracy, decades of being labeled “high-risk”, and systemic barriers to accessing capital. Even when funding is secured, these entrepreneurs often face predatory repayment terms, making it even harder to build sustainable businesses.
In Maryland, there are 4,523 beauty, cosmetics, and fragrance businesses (NAICS 446120). Although no racial breakdown is available, a significant portion are likely minority- or Black-owned. These businesses stimulate the economy, create jobs, and strengthen communities, yet many are held back simply because they lack the tools, knowledge, and fair access to capital needed to grow.
The need to address this is urgent. According to Forbes, “Entrepreneurship is particularly important to Gen Z. In a 2021 study, 53% of Gen Z respondents hope to run businesses in the next 10 years.” If the next generation aspires to own businesses, we must equip them with financial literacy, business education, and easier access to funding to level the playing field across all communities.
At AJLF, our mission is to empower emerging beauty professionals with funding, professional development, and essential resources to help them launch and sustain their businesses. Cosmetology is more than a trade, it is a launchpad for entrepreneurship. By prioritizing financial education and equitable access to capital, we can ensure the next generation of beauty professionals not only survive but thrive, building businesses that endure, grow, and make a lasting impact in their communities.
References
● Sophinos, L. (2023, May 30). A Beautiful Path to Entrepreneurship: It’s Time to Change Our Perception Around Beauty and Wellness Trades and Tech. Forbes. Retrieved from: https://www.forbes.com/councils/forbestechcouncil/2023/05/30/a-beautiful-path-to-entrep reneurship-its-time-to-change-our-perception-around-beauty-and-wellness-trades-and-tech/
● Lindzon, J. (2021, May 11). Why Gen Z is so keen on entrepreneurship, and what that means for employers. Fast Company. Retrieved from:
https://www.fastcompany.com/90631769/why-gen-z-is-so-keen-on-entrepreneurship-and-what-that-means-for-employers
● Survey Shows High Loan Denial Rates for Black-Owned Businesses. (n.d.). NBC News. Retrieved from:
https://www.nbcnews.com/now/video/survey-shows-high-loan-denial-rates-for-black-own ed-businesses-250391109880