Highlighting the Challenges Faced by Ethnic Owned Salons in the Beauty Industry

Why Diversity-Owned Salons Remain Underrepresented in the Beauty Industry — And What We Can Do About It

The beauty industry, though vibrant and ever-evolving, still reflects disparities that leave many diversity-owned salons—including those owned by Black, Hispanic, Asian, and other minority entrepreneurs—underrepresented. A major barrier is limited access to capital.

Starting a salon requires a sizable investment in equipment, product inventory, staffing, and marketing. Yet, many entrepreneurs from marginalized communities face systemic obstacles when trying to access funding. A report by the National Bureau of Economic Research found that only 1% of Black-owned businesses receive venture capital funding—compared to 15% of their white-owned counterparts. Similar disparities exist across other communities of color.

This financial gap makes it harder to launch, grow, and sustain salons—resulting in reduced visibility and fewer ownership opportunities within the industry. That’s where support from organizations like AR Consulting becomes crucial, helping beauty professionals obtain the capital they need to thrive.

A Lack of Cultural Representation in Beauty

Another challenge is the historic lack of cultural diversity in mainstream beauty spaces. Many major companies and brands have long catered primarily to Eurocentric standards—leaving behind the unique hair textures, skincare needs, and beauty narratives of communities of color.

Clients from diverse backgrounds—including Black, Latina, Indigenous, Asian, and multicultural individuals—often struggle to find salons that truly understand their needs. Many have experienced stylists who were not properly trained in their hair types or cultural beauty practices. As a result, they seek out salons owned and staffed by professionals who share and respect their lived experience.

But because there are fewer of these culturally inclusive salons, consumers may be forced to travel further, pay higher prices, or compromise on quality.

What Can We Do to Change This?

Here’s how we can collectively foster a more inclusive and equitable beauty industry:

✅ Increase Access to Capital: Support funding programs and mentorship opportunities for minority-owned beauty businesses. Institutions and lenders must recognize the potential in underrepresented entrepreneurs and provide the financial tools they need.

✅ Expand Representation in Products and People: From product development to marketing, the beauty industry must include products for all skin tones, hair types, and textures. Hire diverse models, influencers, chemists, stylists, and decision-makers across all levels.

✅ Support Diverse Salons Directly: Patronize local salons owned by Black, Hispanic, Asian, Indigenous, and other culturally rooted professionals. Share their work. Leave reviews. Amplify their voices and offerings.

Closing the Gap—Together

The underrepresentation of minority-owned salons isn’t just a business issue—it’s a community and cultural issue. By expanding access, embracing diversity, and choosing where we spend our dollars more intentionally, we can shape a beauty industry that reflects the brilliance of all its people.

Let’s build an industry that honors beauty in every shade, texture, and tradition.

—Arnetta Rogers is a best-selling author and industry innovator who empowers beauty professionals through business systems, financial strategies, and digital tools to create generational wealth.