These unique ways will guide you on how to support Black-owned businesses in dire need of help during the pandemic and after it’s gone.
Due to the George Floyd incident in June 2020 that led to multitudes protesting with #BlackLivesMatter placards, many people are now looking for possible ways to invest in Black-owned businesses and possibly mitigate the long-standing racial inequalities in the U.S.
Small businesses generate up to 44% of the U.S. economy, and Black business owners own most of them.
This pandemic situation has affected many Black-owned businesses, and they need support to stand their ground.
Without support, they might likely fail, causing a significant slide in the U.S. economy.
American Express in 2019 had reported that Black women-owned business owners are the fastest-growing group of entrepreneurs in the United States. However, they face various arduous challenges when it comes to getting support for their businesses.
These black entrepreneurs mostly rely on their savings and credit card to fund their business, which is not always enough.
All these challenges and more prove that Black-owned businesses need support from elites and other venture capitalists.
6 Ways to Support Black-Owned Businesses
1. Look Out for Black-Owned Businesses and Buy from Them
There are various products and services provided by Black entrepreneurs; look out for them and purchase those services.
One of the surest ways to support Black businesses – becoming regular customers to their companies can significantly boost their revenue, thus keeping them afloat, giving them a befitting spot in competitions within their markets/industries.
You can scoop out Black businesses on social media.
Irrespective of the social media platform you frequently used, these hashtags will reveal a bunch of Black-owned businesses you can buy from or provide any other support you could. The hashtags include #SupportBlackArt, #BlackOwnedBusiness, and #SupportBlackBusiness.
2. For Other Business Owners, Think of Diversity
If you also run a business in the States, you should consider appointing qualified Black candidates as highly ranked personalities to help run your business.
Doing so can help to combat racism, and there’s a possibility that such a move can increase your revenue per Boston Consulting Group’s study.
The study shows that businesses with Blacks as top echelons generate up to 19% higher revenue than others.
Take this step to mitigate racism in the States; you’re arguably taking action to boost inclusion and your bottom line.
When you’re determined to foster a positive societal change, you have to take the first step by adopting the change you seek.
- Are your suppliers list diversified or made up of only companies owned by a particular race?
- What about your employees?
- Are they diverse?
Diversifying your business will go a long way.
Suppose your employees are not diverse at the moment, during your next recruitment. In that case, you should shun any form of bias, evaluate the hiring process, and ensure only the most qualified persons are hired, irrespective of their race (color).
3. Refine Your Charity Donations
It is a good thing to carry out various charitable works to foster improvement and satisfy certain people’s needs.
Charitable donations can be a creative way to empower smaller Black-owned businesses that are still struggling with capital and funding.
These donations can go through nonprofits to reach Black businesses that need support.
4. Consider Black Business Vendors
Undoubtedly, as a small business owner, there are vendors and suppliers you work with to thrive in your business.
Typically, you go into signed contracts with these vendors, and these contracts are renewable upon expiration.
If your vendors are not diverse, when it’s time to renew the contract, you can consider to try out Black-owned companies as your next vendors.
There’s no harm in a trial; so, you could agree on a short-term and check how their services go. There are many Black-owned companies capable of serving your small business just the way you expect.
5. Include Black Consumers in Your Target Audience
Is your target consumers inclusive to Black consumers? Black business owners should answer the same question.
Expanding your target customer base to include Black consumers can also act as one of those handy ways to support Black-owned businesses.
How does this work?
Black entrepreneurs will need to buy services and products from other companies to promote their businesses or meet their business needs.
When your business is open to Black consumers, Black entrepreneurs will buy from you and continue to promote you; so, it’s a win-win situation.
Moreso, this expansion can increase foot and online traffic, increasing your bottom line.
6. As a Consumer, Change Your Buying Practices
Have you ever bought a product or service offered by a Black company?
One of the ways to support Black-owned businesses as a consumer is to buy directly from them.
Your regular patronage will mean more income for these businesses, especially in times like this, when the world is coping with a pandemic.
To search for Black-owned businesses, apps like EatOkra and sites like the Nile provide a cumbersome list of companies and Black-owned companies. Also, utilize social media.
Nevertheless, tons of businesses are owned, run, and managed by Black entrepreneurs; you would definitely find one that provides the services you need.
The support you offer to black businesses doesn’t just help them; it also positively affects the U.S. economy.