Michigan Chronicle
Jeremy Allen
Aug. 3, 2024
August marks the celebration of National Black Business Month, an important opportunity to recognize, support, and celebrate the contributions of Black-owned businesses. This observance is a critical acknowledgment of the economic, social, and cultural impact these businesses have on our society.
As tough as the economic landscape has many people in right now in this modern economy, understanding and supporting Black-owned businesses is crucial for fostering a more inclusive and robust economic landscape.
The Economic Impact of Black-Owned Businesses
Recent data underscores the substantial role Black-owned businesses play in the U.S. economy. With approximately 3.12 million Black-owned businesses nationwide and about 50,000 Black-owned businesses in Detroit (this number includes home-based businesses and owner-operator businesses), these enterprises employ 1.18 million people and generate nearly $134 billion in total sales across the country. These figures are not merely statistics; they represent livelihoods, dreams, and the resilience of a community that has historically faced systemic barriers to economic success.
Despite their significant contributions, Black-owned businesses make up only about 3% of all classifiable businesses in the U.S., a stark contrast to the 14% of the population that identifies as Black. This disparity highlights a need for increased support and opportunities for Black entrepreneurs. By focusing on these businesses, we can help bridge this gap and ensure that the economic contributions of Black-owned businesses are proportionate to their population size.
The Role of Black Women in Entrepreneurial Growth
One of the most inspiring trends in the landscape of Black-owned businesses is the rapid growth driven by Black women. In recent years, the number of Black women-owned businesses grew by an impressive 20.2%, outpacing the overall growth of Black-owned businesses at 14.3% and women-owned businesses at 3.1%. This trend underscores the pivotal role Black women play in the entrepreneurial arena and their capacity to drive economic change.
“We’ve got about 1,500 members; 70% of our members are Black women. There’s an economic imperative to the work that we do. But a lot of times we allow our fear of race to impede our economic growth in our state and our country,” Charity Dean, President and CEO of the Michigan Black Business Alliance said.
Black women entrepreneurs often bring unique perspectives, innovative solutions, and a strong commitment to community development. Their contributions extend beyond economic metrics; they inspire future generations, create jobs, and foster community resilience. Supporting Black women in business is not only a matter of equity but also a strategic investment in our collective economic future.
How to Support Black-Owned Businesses
Supporting Black-owned businesses can have a profound impact on revenue generation and employment opportunities within the community. Here are some practical ways to get involved and make a difference:
- Buy from Black-Owned Businesses: Your purchasing power is a direct way to support these enterprises. By choosing to buy from Black-owned businesses, you help strengthen the economic foundation of the local business community, fostering growth and sustainability. Whether it’s a local bakery, a boutique, or a tech startup, every purchase counts.
- Engage in Community Events: Participate in local events and markets that feature Black-owned businesses. These events are not only great opportunities to find unique products and services but also a way to show solidarity and help build a stronger, more connected community.
- Share on Social Media: In the digital age, visibility is crucial. Give a shoutout to your favorite Black-owned businesses on social media platforms using the hashtag #BuyBlack. Tagging organizations can increase visibility and draw more customers to these businesses.
- Mentorship and Networking: If you have expertise in business, consider offering mentorship to Black entrepreneurs. Sharing knowledge and resources can help new and existing Black-owned businesses navigate challenges and seize opportunities.
- Advocate for Policy Changes: Support policies that promote equity in business funding, access to capital, and economic development programs tailored to the needs of Black entrepreneurs. Advocacy at the local, state and national levels can lead to systemic changes that benefit Black-owned businesses.
- Educate Yourself and Others: Take the time to learn about the history and challenges of Black-owned businesses. Educating yourself and others about the importance of economic equity can foster a more supportive environment for these businesses to thrive.
Looking Ahead: A Call to Action
As we celebrate National Black Business Month, let’s commit to making tangible, lasting changes. Supporting Black-owned businesses is not just a month-long endeavor but a year-round commitment. By taking deliberate actions to support these businesses, we can help create a more equitable and prosperous economy for all.
The progress seen in places like Washington, D.C., offers a blueprint for success. It shows that with the right support and resources, Black entrepreneurs can overcome historical and systemic barriers to achieve remarkable success. As consumers, community members, and policymakers, we all have a role to play in this journey.
Let us use this month as a catalyst for continued action, ensuring that the contributions of Black-owned businesses are recognized, celebrated, and supported. It’s our job to create an environment where Black businesses thrive, communities prosper, and the economy grows stronger and more inclusive.