Sarah Elisabeth Jacobs was born in Toledo, Ohio, in 1855. Her parents were Oliver and Harriet Jacobs, who were both enslaved people who were freed.

Sarah's family moved to Newport, Ohio, where Oliver Jacobs worked as a carpenter. This relocation likely provided new opportunities for the family after their emancipation.

Sarah spent her early childhood in Newport, Ohio. It's likely that the atmosphere after the Civil War, although challenged with its own set of problems, influenced her perspective on equality and business development.

Although specific details are scarce, it is likely that Sarah received some level of education during this period, probably through local schools. There is no documentation showing what her very first job was, but she was married at a fairly young age and likely worked before then.