The dollar has a lot of power. Especially the black dollar. Whether used to invest in education or to support a business with a positive mission, money has the capacity to make a huge difference and shape a better world. With this amount of power comes a huge responsibility for us as consumers to use our funds in a way that supports black communities. The easiest way to make sure this is accomplished is to take our money straight from the source: black-owned businesses. For National Black Business Month, here are five reasons to buy a black property this month – and every month!

1. Help bridge the racial wealth gap

In 2019, the median household income differed between white and black households by over $ 160,000, with white households at $ 189,000 and black at $ 24,000. On top of that, more than a quarter of black households have a net worth of zero or are in the red. This is a surprising margin that not only shows a financial disparity between blacks and whites in America, but also speaks of disparities in housing, education, etc. However, a study by the Congressional Black Caucus Foundation (CBCF) found that black business owners have a median net worth that is more than 10 times that of black non-business owners. This is clear proof that business ownership for blacks is a way to improve their earning potential and help them become more financially egalitarian in the United States.

2. Stimulates local economies

Black-owned businesses tend to be small, local businesses. When you support these types of businesses, more of the money you spend will likely stay in the community than if you were to buy from a national chain. In addition to the flow of money, if local businesses are seen as thriving, outside community investors will be encouraged to place money in neighborhoods to fund education, healthy outdoor spaces, health care, and more. job growth.

3. Strengthens local communities

In addition to the economic strength that comes with supporting black-owned businesses, these establishments are known to pour this support forward with mutual aid. Programs like Black Girls Code and the For Us By Us Market in New Orleans are spaces the founders wanted blacks to grow up in. These types of environments are essential to the health and strength of the black community, as they provide black people with the opportunity to become a priority. It is essential that these types of businesses are supported and can keep their doors open, because as long as they operate, the symbiotic relationship between business and community will continue to thrive.

Additionally, supporting these small black businesses helps keep black communities diverse and unique. Rather than allowing larger conglomerates to come in and erase the flavor and culture that make these places beautiful, maintaining black-owned businesses allows these neighborhoods to retain their personality.

4. Help more black entrepreneurs start businesses in the future

According to the Kauffman Group, blacks are more likely to finance their businesses using personal credit than any other group, primarily due to discrimination in the distribution of business loans. Banks are much more likely to provide business loans to potential white business owners than to blacks. This type of discrimination is unacceptable. One way to fight this injustice is to demonstrate to banks that black-owned businesses are profitable. Supporting them does more than just put money in their pockets. By buying Black, you can encourage large institutions like banks to see that there is potential in these businesses. In doing so, aspiring entrepreneurs who have not yet applied for bank loans will have a better chance of being approved, thus encouraging a new generation of successful black-owned brands.

This increase in business loans to blacks is not only beneficial to those trying to start a business. It will also benefit the whole country. The US economy has lost $ 13 trillion in revenue by denying black entrepreneurs access to bank loans to start businesses. This amount of money is certainly not trivial and shows how necessary it is to give black business owners a chance.

5. Big business will take note

Every dollar you spend is a vote for what you want the world to look like. When you spend money to support black-owned businesses, the big establishments take notice. If a department store finds that a black-owned clothing brand is particularly popular, chances are the department store is looking to stock that brand’s clothing. Or, for example, if a black-owned hair care line is in high demand, large convenience stores will look to sell these products in their stores. These are lucrative opportunities for black business owners that can only be made possible if there are people who support their businesses when they are just starting out. In addition, large corporations will be forced to compete with black-owned businesses.

By applying this pressure to businesses, they will seek to create more opportunities for black employees within their organization, sell products aimed at a more diverse market, and strengthen black representation in their marketing. In 2018, the makeup brand Tarte was questioned for a lack of range of shades in its best-selling concealer. This controversy has occurred alongside the rise of black-owned makeup brands like Fenty Beauty and Pat McGrath, which have responded to demand for a more diverse range of shades.

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