Guest Blog: 3 Ways to Support Black-Owned Businesses
A truly holistic diversity, equity, and inclusion strategy includes taking the work outside your organization to impact local communities. Supporting Black-owned businesses means supporting your local communities through your local economies.
According to the 2020 Annual Business Survey, Black-owned businesses employ 1.3 million employees and account for $40.5 billion in annual payroll, with just $133.7 billion spent with those organizations. While that might sound like a lot, that’s only a small fraction of U.S.’s economic power.
Throughout history there have been barriers and roadblocks, which have limited the growth of business ownership within Black communities. Systemic and institutionalized inequities like redlining, the racial wealth gap, and lack of access to capital perpetuate inequities that continue to have effects on Black-owned businesses. The pandemic has only furthered the divide, with Black business owners experiencing the largest drop in business ownership rates than any other racial group. Not to mention, out of the businesses that were able to stay afloat, only 8.8% reported being profitable and growing, versus 14.7% of White-owned businesses.
But, fortunately, you can support Black-owned businesses with three things you already have… money, time, and energy.
Money
When supporting Black-owned businesses, money matters… not only as a consumer, but also as an investor. Unfortunately, most publicly traded companies are not Black-owned, but there are a handful you can diversify your portfolio with. If you don’t have the means to invest, you can Bank Black and support Black-owned financial institutions who are actively investing in their communities.
If you’re not at investor level, you can still invest in Black-owned businesses as a consumer (or as the person with purchasing power in your organization). It may take some research, but lucky for us, the internet comes through with many resources to find the right business to meet your needs.
Black-Owned Restaurant Lists Circulating the Internet, Organized by City
Time
Use your time to mentor and sponsor Black entrepreneurs. 91% of small-business owners say a mentor was critical for their growth and survival. With the inequities mentioned above, Black business owners may not have the family and friends to lean on for advice.
If you haven’t been an entrepreneur yourself, your insight working in larger enterprises could help them ideate and innovate. Also, getting access to capital can be all about who you know and what connections you have. Black business owners are still experiencing lower approval rates for business loans than other racial groups. You might just be the investor they’ve been looking for. You can find opportunities to mentor or sponsor through your local chambers of commerce (especially minority-focused chambers).
Energy
Your energy is the most valuable asset you could invest in Black-owned businesses. Use your power, energy, and privilege to advocate for the Black-owned businesses in your communities. Join your local chambers of commerce (especially those focused on marginalized and underrepresented communities) and hear from the business-owners directly what they are experiencing. Then take that knowledge and advocate for the change needed in legislation, funding, and resources.
In your organization, take a look at your supplier diversity programs and ask if more could be done. Is your RFP process equitable and advertised to Black-owned business communities? And it may seem trivial but leave positive online reviews and tell your friends about the awesome Black-owned businesses you’re supporting. Word of mouth is powerful and can drastically change the perception of others. The energy you put out to support Black-owned businesses should be vocal and visible.
Just as every person is different, every business has its own unique needs and will require different levels and forms of support. Before assuming what is best, ask. Create authentic relationships with the business owners in your communities and ask them how you can support them. You might be surprised by the unique and simple ways you can invest your money, time, and energy.
Meet Our Guest Blogger
Kaela Blanks, M.S., SHRM-SCP
Diversity, Equity, and Inclusion Strategist