By Taylor Durham
- The number of Black-owned businesses increased by 400% from 2017 to 2018
- 45% of small business owners are minorities
Black businesses have been at the intersection of civil rights and economic prosperity for our community for generations. These consumers may well be the most sought after demographic in terms of our cultural and economic impact. A 2018 survey found that the number of Black-owned businesses increased by 400% from 2017 to 2018, with the added effect of promoting the spending of money within the community. Now, an unprecedented wave of entrepreneurs has utilized every retail platform to provide black-owned products to the masses.
Why This Matters: Banks have a storied history of discriminatory practices against black entrepreneurs and business owners, yet despite this practice, black businesses have continued to thrive. We can primarily attribute this to the collective, Black purchasing power that’s well over $1.3 trillion and exceeds the GDP of most countries. This presents Black consumers with the rare opportunity to “vote” with their money because the only color businesses really care about is green. Even corporations that know this are pouring millions into their marketing campaigns catered to the black experience like McDonald’s and Walmart to entice us to spend our dollars.
An unprecedented wave of entrepreneurs has utilized every retail platform to provide black-owned products to the masses
There’s also a push for Black consumers to bank black as well. Did we mention that banks have a history of discriminatory practices? #BankBlack went viral in 2016 urging the Black community to open accounts with black-owned banks across the country, these banks offer much more in terms of accessibility and power. Nearly 50% of all Black Americans don’t bank or are underserved by banks, relying on payday loans, check cashers and preloaded debit cards as alternatives.
OneUnited Bank now has total assets of about $649 million as of 2018 and banks like this provide underserved groups with fair access to financial tools and often provide lending solutions to prospective homeowners and businesses. These banks can also empower communities, investing directly in the people it serves.
Situational Awareness: There’s power in numbers, and those numbers generate billions in dollars that can help to stimulate the black community. Banking and buying black may provide the keys to uplifting many out of the oppressive, systemic cycle of poverty.
CBx Vibe: “Alright” Kendrick Lamar
