More and more Black businesses are being established each day. From a survey conducted by Guidant Financial and online credit marketplace, Black-owned businesses grew over 400% in 2018, as compared to 2017.
According to the United States Census Bureau, there are over 2 million Black-owned businesses. This dispels the rumor that we are not entrepreneurial.
Moreover, statistics show that we are the largest consumers in the country and that we influence many market trends (African Americans are responsible for $1.2 trillion annually). However, we don’t spend as much money, or influence for that matter, on buying black. According to an article by James Clingman Jr. titled “ Buying Black- The Ebony Experiment,” there’s a considerable amount of money, $850 billion to be precise moving through Black consumers’ hands every year with 90% of that amount going to businesses owned and controlled by non-Blacks.
It is quite unfortunate.
Why it’s Important To Support Black-Owned Businesses
It fosters job creation
As of August 2019, the overall unemployment rate of the US was at 3.7%. Even though the unemployment rate of Blacks fell slightly to 5.5%, it’s still higher as compared to the other communities.
Actually, 1.9 million of the 2million Black businesses lack paid employees. This is because most of them are sole proprietorships and lack funding to start big businesses.
If, however, you buy from a Black business, you create a double-duty dollar concept. This concept basically explains that if as a Black consumer, you buy from a Black business, the money you spend has a doubling effect. This effect provides additional capital to the business, which equates to new jobs, and opportunities.
It strengthens the community
It is said that the dollar circulation for blacks is only 6 hours. This means that a dollar you spend really stays in the community for 6 hours.
We are usually known as “brand loyal” and are the biggest spenders in specific stuff such as footwear, fast foods, phones, and others. But who does that benefit? Simpe! The one on the receiving end.
Researchers have, for a long time, said that black consumers have power. But what makes them powerful? Spending a lot of money? I don’t think so.
The Black dollar keeps flowing outward, making other communities rich. So can we even call it the Black power? If we want power, we should spend money supporting our businesses and learn the benefits of financial literacy, investing, and saving in Black businesses. Doing so will encourage and promote the community.
As Fredrick Douglass puts it, “Who you give your money to is who you give power to.”
It improves the economy
If the dollars are always leaving the community, it only hurts our hospitals, families, banks, schools. You name them. This will never solve our economic problems. Otherwise, if we support our own, the money could help solve significant economic issues currently facing the community. Strengthening the Black community strengthens the American economy and ensures that the United States remains globally competitive.
If you want Black-owned businesses to make history, you and everyone around you have to support them. How? You ask.
Research local owned Black businesses. Make it your mission and priority to buy Black. From the grocery store, gas station, bank, etc. We must unite and direct our resources to these businesses.
Let’s create generational wealth that can strengthen our financial literacy.
Now that you know the impact of supporting black business, how will you go about it?
Let’s engage. Shall we?
May 25, 2020