By Gary J. Nix
- Black business ownership rose by 38% compared to pre-pandemic levels
- 3.12 million Black-owned businesses generate $206B in annual revenue
So, as we navigate through the present economic downturn, let’s discuss some of the reasons why Black business owners are more optimistic than their non-Black counterparts about their business outlook. Across the United States, the rate of Black business ownership rose by 38% compared to pre-pandemic levels. The 2022 United States census data indicates that 3.12 million Black-owned businesses generate $206 billion in annual revenue.
Why This Matters: Before we fully jump into the subject at hand, I’d be remiss if I didn’t remind people that Black businesses would not exist without Black people. No ifs, no ands, no buts about it. Additionally, we are more than aware of how much Black culture influences business, as we see it every day in their quest to gain access to our $1.6 trillion consumer spending power.
However, uneven access to capital is a hurdle common for Black, Latino, Asian, and women-owned businesses. Specifically, 40% of Black business owners, 27% of Hispanic-Latino business owners and 22% of Asian business owners do not think they will ever have equal access to capital, according to a Bank of America survey.
Understanding how Black customers contribute significantly to the foundation of Black businesses is significant. The survey found 72% of Black business owners are more optimistic in expecting revenue to increase, as opposed to 63% of their non-Black counterparts. Critically speaking, though, when we broach the subject of support, we address how other communities support our business more. In this case, innovation is better rewarded by adoption than imitation.
Recognizing the subtleties surrounding the Black entrepreneurial support ecosystem is vital. The innovative nature of our culture continues to drive new business opportunities. Perhaps this is why 65% of Black business owners plan to expand their business vs. 50% of non-Black business owners.
Situational Awareness: Black culture is a significant business influencer, though Black business owners only reap approximately 1.5% of the $14 trillion spent by all consumers is an imbalance, to say the least. Moreover, the parallels between the rewards collected by Black businesses being similar to how less than 2% of venture capital funding went to Black-owned businesses, appears to be more of a correlation than a coincidence.
Needless to say, the time for everyone to lend more support to the real innovators is now!
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