Small businesses and entrepreneurs have been longtime wealth builders for generations. By supporting more Black-owned companies, you can help create more opportunities for meaningful savings, property ownership, credit building, and generational wealth for black communities. If we all do our part in supporting black businesses, then we’re helping with the progression of strengthening many black communities. Supporting black businesses shouldn’t be a trend; it should be a lifestyle. Here are four reasons why you should shop black.
1. Builds Up Communities
Supporting black businesses builds relationships and boosts community morale. There are currently 2.6 million black-owned businesses in America, where 8 out of 10 fail within their first 18 months due to the lack of resources and funds. According to The State of Working America, “Black people spend four percent more money annually than any other race although they are the least represented race and the race that lives in poverty at the highest rate.” It would be more beneficial if more money was recycled within the black community. More importantly, it would generate more wealth within the community pillars to establish a camaraderie sense for youth and adolescents.
2. Creates Jobs and Opportunities
When black-owned businesses are in high demand, the companies are more profitable. Showing your support helps contribute to creating entrepreneurial opportunities. Black entrepreneurship can fuel the black community's economic prosperity and serve as a bridge where low-income families can move up to middle-class status. The Black to Business article stated, “The problem is that there aren’t enough black-owned businesses to hire unemployed black people. Time is overdue for change, and we must pool our resources and build our own reality.”
3. Closes the Racial Wealth Gap
The persistent racial wealth gap in the United States is a burden on Black Americans as well as the overall economy. It can be traced back to the Jim Crow era and redlining that prevented Black people from accessing higher-paying jobs and homeownership opportunities. According to the Federal Reserve Bank of Cleveland, “In 2016, the average wealth of households with a head identifying as black was $140,000, while for white-headed households was $901,000, nearly 6.5 times greater.” Support of black businesses can increase the flow of wealth to black families and black communities. This helps to close off the racial wealth gap over time.
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