Why Support Black-Owned Businesses
For generations, small businesses have been and remain a primary engine for financial freedom, economic growth, and gainful employment for individuals, families, and local communities. Black-owned businesses are no different. Black-owned businesses employ approximately 920,000 citizens, generate 127.9 billion dollars annually for their local economies and communities, and are spread out in over 16 different industries within the United States of America even though they make only 7% of all businesses nationwide. Black-owned businesses should be supported as much as any other business within our economy. Here are four reasons why buying-Black is crucial.
While only 19.7% of all employer businesses in the USA are led by women and 64.5% of all businesses are headed by white-men, 36.1% of Black-owned businesses are headed by Black women and 64.9% are led by Black men. Furthermore, when separated by industry, 53% of Black-owned healthcare and social assistance businesses are headed by Black women, and 62% of Black-owned professional, scientific, and technical related businesses are led by Black men. This shows that supporting Black-owned businesses not only serves to support closing the race/gender gap in business leadership but serves to directly support the social and innovative needs of communities at the local level.
Supporting Black-Owned Businesses Means Supporting Local Economies
According to a study done in Grand Rapids Michigan, $68 out of every $100 invested in a local business stays within the local economy, relative to $43 invested in non-local businesses. The $68 contributes to local wages, taxes, social services, donations, etc. Investing in Black-owned businesses at the local level means investing in your own neighborhood and local infrastructure.
They Aren’t Doing So Great In Covid-19
While Black-owned businesses have experienced levels of unprecedented growth within the last few years, they are in dire need of support now more than ever. Since February 2020, 41% of black-owned business have closed relative to 17% of white-owned businesses during the Covid-19 pandemic. This in large part is due to weaker financial positions, discriminatory bank relationships, and limited federal relief that Black-owned businesses face due to historic racial inequality, and strong competition from larger businesses.
An Economic Investment Is A Moral Investment
People invest in what they believe in. In an era of internet activism, it is important that individuals who say that they value Black communities, economically support Black communities through support of Black business. Supporting Black businesses does not mean that other businesses are not important. What it is an assertion and acknowledgement of the role of Black business in building stronger communities for all, and as good neighbors, it is our responsibility to help local businesses in need.