BLACK NEWS

In the rich tapestry of American commerce, Black-owned businesses hold a place of immense significance. Historically, these enterprises emerged out of necessity during times of segregation when many white-owned businesses refused to serve Black customers. These businesses not only filled a crucial service gap but also became the heart of Black communities, offering essential goods, services, and a sense of pride and solidarity.

Supporting Black-owned businesses today remains just as important. With approximately 2.6 million Black-owned businesses in the United States, these enterprises are instrumental in bolstering local economies and enhancing community morale. However, they face substantial hurdles, including a higher likelihood of failing within their first 18 months due to limited resources and funding. Despite these challenges, Black-owned businesses collectively generate about $206 billion in annual revenue and support 3.56 million jobs, illustrating their profound impact on the national economy.

The obstacles confronting Black-owned businesses are considerable. Even when financing is secured, these businesses often contend with higher interest rates, which can impede their growth and make refinancing more difficult. This financial disparity is compounded by a significant racial gap in venture capital investment, further stifling potential progress.

Healthcare and social assistance stand out as the most common sectors for Black-owned businesses, reflecting a critical need in these areas. With annual receipts of approximately $183.3 billion and 1.4 million employees, these businesses play a crucial role in both economic contribution and job creation.

Nevertheless, the landscape of business ownership in America remains predominantly white. In 2019, white families owned 80% of small businesses, compared to 5% Black and 4% Hispanic or Latino families. This disparity underscores the need for continued and increased support for Black-owned businesses to level the playing field.

Recent trends show promising developments. For instance, New Mexico experienced a remarkable 323.8% increase in new Black-owned startups from 2020 to 2021, demonstrating a burgeoning entrepreneurial spirit within the community.

Supporting Black-owned businesses is not just a matter of economic necessity but a commitment to fostering diversity, equity, and inclusion within the business world. By investing in these enterprises, we contribute to a more vibrant and equitable economy, ensuring that all communities have the opportunity to thrive.