With National Black Business Month coming up this August, how are you poised to support black entrepreneurs? When it comes to shopping with a purpose, you should rather be mindful of your shopping habits!
Remember, black businesses contribute more than $165 billion in terms of revenue to the US. Besides, these businesses go a long way in creating jobs, with more than 1 million jobs. So, this coming August, you have an excellent opportunity to acknowledge the contribution of black businesses and support these entrepreneurs.
A strategic approach while shopping from your end can contribute to the country’s economic growth. This would also lead to economic inclusion and diversity, besides reducing racial wealth gaps.
So, if you have decided to support Black-owned businesses, here are some recommendations.
Why support black-owned businesses?
As a consumer, you might wonder about the sheer purpose of supporting black-owned businesses in the first place. In 2004, John William Templeton and Frederick E. Jordan, Sr., started National Black Business Month. Their motto was to focus on the needs of black-owned entrepreneurs in the country.
Amidst the pandemic, the ownership of black-owned businesses suffered a 40% decline. This was the sharpest decline across any demographic. This explains why US citizens need to support black entrepreneurs.
Supporting black-owned businesses has a significant economic impact. Let’s examine the prime reasons for supporting them.
Economic empowerment
Supporting black-owned businesses directly impacts the economic well-being of these communities. As a responsible citizen, I believe it pays to teach conscious shopping habits to boost revenue for these businesses. This way, you can help your country create jobs, generate wealth, and foster economic growth.
Nurturing inclusion and diversity
Creating a more equitable society requires citizens to promote inclusion and diversity in every aspect. When you support Black-owned businesses, you contribute to a more diverse marketplace. This would eventually foster a business environment that encourages entrepreneurship from underrepresented communities. This way, you can lead the initiative to break down the barriers to inclusion and promote equal opportunities for Black entrepreneurs.
Reducing the racial wealth gap
The racial wealth gap continues to be a bothering concern in the US. Supporting Black-owned businesses can significantly close this wealth gap.
Why not make it a habit to spend money at these businesses while shopping around intentionally? This approach from concerned citizens can go a long way in reducing this gap. In the process, wealth would be redistributed to communities that have historically encountered racial disadvantages. Besides, shopping with a purpose at Black-owned businesses promotes economic self-sufficiency.
Key Statistics and Facts for Supporting Black-owned Businesses
- Currently, more than 2 million Black-owned businesses operate in the US.
- The Black Lives Matter movement resulted in an increase in business by 75%.
- Women own around 35% of Black-owned businesses.
- 59% of black business owners were victims of racism while starting their businesses.
- As much as 60% of Black-owned businesses were encountering financial hurdles before the pandemic, while just 30% of white-owned companies faced this trouble.
- Racial discrimination led 80% of black businesses to encounter more challenges.
How can you find and support black-owned businesses?
As a customer, you can support black-owned businesses in several ways. Here are some of the most effective tactics.
Make a radical shift in your shopping habits
Most small, community-oriented black-owned businesses lack a digital presence. With National Black Business Month around the corner, it pays to embrace a radical shift in your shopping habits. Given that most of these businesses don’t have websites, customers should visit their physical stores to shop around.
Changing our shopping habits can help black business owners sustain their ventures. Rather than relying on search engines and product carts, consider searching the directory for small businesses within your locality. Consciously shopping for necessary goods from these communities can enhance their economic stature.
Finding Black-owned businesses
It might take some research, but you can always explore your resources to discover Black-owned businesses around you. To simplify the process, here are some tips for you.
Online directories: Websites such as We Buy Black and Black-Owned Business Directory provide comprehensive lists of black-owned businesses in different locations and industries.
Local community networks: Consider engaging in local community organizations, networking groups, and the chamber of commerce.
Leverage social media: Why not follow social media accounts of Black-owned businesses to discover these businesses? Simply use hashtags such as #ShopBlack or #BuyBlack to find these businesses and their products.
Set goals to shop with a purpose
Why not make your shopping habits measurable when you shop with a purpose? Use expense tracking tools to help you identify the share of your financial outflow on products purchased from Black-owned businesses. This defines the popularity of the My Black Receipt campaign. When you shop with a purpose from these communities, you can track the number of purchases made from Black-owned stores.
Well, you also have other sites that would help you commit to your expenses for this purpose. Check out Black-owned businesses on HelloAlice’s database or Navigator’s list of vetted charities and nonprofits.
Be a loyal customer
For Black-owned businesses, sustained support from your end is vital for long-term success. When you shop to be a loyal customer, you can foster their sustainability and growth. Here are a few guidelines that would make you a loyal customer.
Make repeat purchases: Make purchasing goods and services from Black-owned businesses a habit. It’s not just about celebrating the National Black Business Month of August. Continue purchasing from these businesses to establish a lasting relationship with them.
Get subscription services: Have you considered subscribing to services that Black-owned businesses offer? Consistent support from your end can help in stabilizing their stream of revenue.
Collaborations and partnerships: If you are an influencer or a business owner, explore potential opportunities to strike alliances or collaborations with Black-owned businesses. This can help strengthen their reach as you foster mutually beneficial relationships.
Spread the word
Celebrating National Black Business Month doesn’t necessarily require you to spend money every time. How about spreading the word about supporting Black-owned businesses through your channels? Voice their interest through your social media accounts and share their stories. This can significantly leverage their visibility and exposure, leading to higher sales. Here are some additional tips to support Black-owned businesses.
Word of mouth: Share positive shopping experiences from Black-owned businesses and encourage your friends, family members, and colleagues to purchase from these communities.
Engage on social media: Follow the social media accounts of Black-owned businesses and help them engage better by liking, sharing, and commenting on their posts. Recommend their products and services to your circle to enhance their reach.
Leave reviews and testimonials: Use platforms like Google, Yelp, or simply the business website to leave positive reviews and testimonials. Potential buyers would find your first-hand experience valuable before proceeding to purchase.
Support Black business owners with funding
One of the best ways to support Black-owned businesses is to provide access to funding to their founders. Historical records reveal that Black founders haven’t always enjoyed equal access to funding. For 34% of Black business owners, funding is the primary hurdle to entrepreneurship.
Most importantly, lenders and investors need to consider the viability of their product rather than the founder’s ethnicity.
With financial backing, Black business founders can accelerate the growth of these ventures and gradually scale up. As a concerned US citizen, you know the funding gap. Why not directly seek their services or support them with funding if your position permits you?
Although the outcry over racial discrimination in the US has been phenomenal, there still lies a bias when customers tend to purchase goods. Now that you know this reality, it pays to shop directly from these communities and fund their businesses depending on your financial capacity. Besides, employers may consider developing programs to support these businesses and provide seed funding so that they can strengthen their growth.
Patronize black-owned brands consistently
One of the practical ways to support Black-owned businesses is to patronize these brands. While you make dozens of investment and purchase decisions monthly, it’s easy to overlook Black-owned brands. While National Black Business Month aims to engage in doing business with Black-owned brands just for a month, it’s crucial to establish long-term business relations with these brands.
Invest in Black Women-Owned Businesses
For women entrepreneurs, access to capital has been a key hurdle. However, Forbes reveals that Black women are among the fastest-growing demographic of entrepreneurs in the US. Despite this, they are the least funded group by traditional banking institutions or ventures.
Investors often overlook black women entrepreneurs. As we approach National Black Business Month, let’s make it a point to support this community financially through funding to help them generate revenue. After all, black businesses can create over a million job vacancies nationwide!
A conscious effort
National Black Business Month is an opportunity to complement and support the efforts of Black-owned businesses. It’s time to change your shopping habits and intentionally purchase from this underrepresented community.
With the recommended set of guidelines, you can directly contribute to economic empowerment while promoting inclusion and diversity. A holistic effort from other ethnicities can help bridge the racial wealth gap. Lending your support for Black-owned businesses would foster a more inclusive and prosperous economy in the country.
FAQ
How can I invest in Black-owned businesses?
Explore different angel investing networks to channel your funds to Black-owned businesses. Also, investors can check out crowdfunding platforms or venture capital firms to support these communities. You may also offer mentorship or guidance to Black entrepreneurs, as professional counseling continues to be a valuable form of investment.
Are there specific industries where Black-owned businesses excel?
Black-owned businesses encompass a wide range of industries, including food and beverage, retail, technology, fashion, beauty, professional services, and others. These firms excel in different sectors, contributing heavily to the country’s revenue and diversifying the business landscape.
How can I find Black-owned businesses in my area?
You can find black-owned businesses in your area in several ways. Use online directories focussed on black-owned companies. Also, follow the social media accounts of these businesses or search using hashtags. You may engage in local community organizations, networking groups, or the chamber of commerce supporting these businesses.
Are Black-owned businesses only relevant during National Black Business Month?
No, rather than supporting Black-owned businesses only during National Black Business Month, engaging with them throughout the year is imperative. While August allows you to celebrate these businesses, Black entrepreneurs need consistent support from your end throughout the year.
How can I support Black-owned businesses if I don’t have a lot of disposable income?
Supporting Black-owned businesses doesn’t always require you to purchase something. You can simply spread the word about them in your network using social media. Reviews and testimonials that primarily convey your first-hand stories and experiences with these businesses can advocate their voice. Just recommend authentic enterprises owned by Black entrepreneurs to others and help them grow their customers.
What are some successful Black-owned businesses in the US?
Some popular Black-owned brands in the US include Salamander Hotels & Resorts, Devon Industrial Group, Millennium Steel of Texas, Curls, McBride Sisters Collection, Red Bay Coffee, Camille Rose, and so on.
