When it comes to economic prosperity, supporting Black-Owned Businesses is essential. Not only does it create business opportunities for entrepreneurs, but it also serves as a bridge for low-income families to achieve middle-class status. This is because the origins of today's racial wealth gap can be traced back to Jim Crow-era practices, such as redlining, employment discrimination, and exclusionary legislation, that segregated African Americans from higher-paying jobs and homeownership opportunities that ultimately impeded wealth creation. The Social Security Act of 1935 is often advertised as one of the first social safety nets in the country, but it largely left out black citizens. This was because it did not cover domestic and agricultural workers, or low-level jobs with low or unofficial wages without payroll information. Another benefit that comes from supporting Black-Owned Businesses is the celebration of black culture.
Many entrepreneurs create their own products and open their own businesses to provide products and services that are basic elements of their own cultures. From restaurants to hair products, supporting black entrepreneurs instead of chains and big corporations allows profits to fund businesses that genuinely honor and respect black culture, rather than trying to profit from it. Most of us don't have the individual capacity to equalize the balance of bank lending or redistribute wealth. But we can indirectly influence the likelihood that Black-Owned Businesses will overcome these obstacles by supporting them with our consumer spending habits. This will help alleviate the need for additional loans or recourse to personal savings. Promoting the success of Black-Owned Businesses will also help address some of the prejudices that prevent black entrepreneurs from gaining equal access to commercial loans.
By endorsing the idea of buying blacks, middle-class blacks cultivate a form of black cultural capital that affirms a common understanding about market power and its spending, which can work to unite and help black people's progress. The standard beauty school curriculum does not require stylists to learn to work with all types of hair, including types common among black women. This is a problem that many Black-Owned Businesses are created to address, providing basic elements of their own cultures such as hair care and makeup products. The disparity between the experiences of different races has been exacerbated by COVID-19, resulting in the closure of 41% of Black-Owned Businesses compared to 17% of white-owned businesses. Shopping in businesses owned by minorities or women puts cash in the places and community where you live, work and raise your family. Black men are only ¼ as likely as white men to own a business with employees, and black women are only half as likely as white women. Over time, many have dedicated time, money and energy to efforts that will advance the career, improve the financial well-being and status of blacks, and help black communities thrive. When you shop with a company you partner with (perhaps a veteran-owned or LGBTQ company), you help create a better local environment for everyone, where you and your family can continue to thrive.
For example, during the economic recovery, Black-Owned Business Owners are essential to financial stability as they are likely to hire and offer job opportunities within their communities. Shopping in businesses owned by Blacks, Latinos, LGBTQ, Women, Veterans and other minorities is a great way to make a difference. It helps create economic prosperity while also celebrating black culture. Supporting these companies helps create business opportunities for entrepreneurs while also providing products and services that are basic elements of their own cultures.