In August, we celebrate a lesser-known but significant recognition month: National Black Business Month. As inequality runs rampant, supporting Black-owned businesses and entrepreneurs is more important than ever. Regardless of your background, this is a critical month to recognize and support Black-owned businesses to continue building greater economic freedom for Black communities.
National Black Business Month 101
The goal was simple: to highlight and empower Black business owners. Historian John William Templeton and engineer Frederick E. Jordan Sr. knew firsthand the unique challenges faced by minority business owners and wanted to do their part to drive a policy agenda that supports minority entrepreneurs. They founded National Black Business Month in August 2004.
More than 161,000 Black-owned businesses are in the United States, representing 2.4% of all private companies. The number of Black-owned businesses has grown significantly in the last five years and now brings in a total of $138 billion annually. Some of the largest Black-owned businesses in the U.S. include World Wide Technology, ActOne, and BridgeWater Interiors.
While these numbers are impressive, Black-owned businesses have been overlooked and often face challenges to access resources and achieve economic success. Black entrepreneurs are significantly underrepresented. They often face bias and discrimination, which makes it challenging to receive funding, gain investors, and grow their businesses. Research shows that 47% of Black business owners are denied business loans, compared to 18% of white business owners. With less capital to start and financing difficulties, it can be challenging for Black-owned businesses to get off the ground.
3 Ways You Can Support Black-Owned Businesses
Most Americans agree that supporting Black-owned businesses is an effective strategy to gain momentum for increased equality. Small business owners of all races are uniquely positioned to support Black entrepreneurs because they understand the challenges that come with starting a business, especially for minority-owned businesses. Recognizing fellow Black entrepreneurs and Black-owned businesses shows your support as an entrepreneur and helps promote diversity and equity. With a conscious effort to highlight and empower minority business owners, you can make a difference in your community and with your customers.
What can your business do to showcase, encourage, and support Black entrepreneurs, especially during National Black Business Month? Use your platform to highlight their unique challenges and incredible businesses. Here are three ideas to get started:
- Share and promote Black-owned businesses on social media. It only takes a few seconds to post, like, or share about a Black-owned business. You’ve likely developed a social following for your business, so use your influence to highlight other entrepreneurs. There may be a Black entrepreneur you admire, a business that offers innovative services, or a product that pairs well with your product. Whatever the business, a like or share of a post can increase engagement for the Black-owned business and send its message to a wider range of people.
- Showcase products by Black-owned businesses in your business. Find a business or product that works well with your business? Add it to your website or store. Partnerships benefit both parties, and showcasing Black-owned businesses puts products in front of your customers and adds visibility to the brand.
- Visit Black-owned businesses in your area. There’s no better way to support a business than to shop there. This month, make a conscious effort to visit and support Black-owned businesses in your area. Your presence matters — supporting these businesses shows your commitment to inclusion and equality and lets Black entrepreneurs know they aren’t alone. Shopping at Black-owned businesses (in person or online) boosts their sales. Not sure where to start? Search for Black-owned businesses in your area or use an online directory of Black-owned businesses.
Owning a business is challenging enough. But the additional challenges of inequality and racism make it even harder for Black entrepreneurs. Use this month to celebrate, support, and strengthen their critical contributions to the U.S. economy. When Black-owned businesses succeed, communities celebrate and grow alongside them. That’s a win we can all support.
Disclaimer: Fundbox and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
