Succeed As Your Own Boss

ENDING SMALL BUSINESS FAILURE

  • Home
  • About
  • Book Melinda
  • Consulting
  • SBL Store
    • Books/Workbooks
    • LifePlanningJournal
    • 30 Day Fast Start Program
    • Become Your Own Boss Course
    • Become Your Own Boss Bundle
    • Fix Your Business Masterclass
    • Write A Business Plan Course
    • One-on-One VIP Coaching
  • Subscribe to Podcast
  • #Smallbizchat
    • Be a #SmallBizChat Guest
  • Blog
    • Write For Us
  • Contact
You are here: Home / Business Inspiration / How Can Brands Support Black Businesses

How Can Brands Support Black Businesses

July 22, 2020 By Melinda Emerson Leave a Comment

Feel free to share...Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Share on Reddit
Reddit
Email this to someone
email
Print this page
Print

Black businesses have been hit hard by the Pandemic, a recent study from the National Bureau of Economic Research reported that 41% of Black businesses have shut down since March. I think it’s important to break down the history of the climate of systemic racism that exists for Black America and how it has impacted black businesses and how brands can support Black businesses moving forward. As a Black female business owner for the past 21 years, I believe I have a unique perspective to share on this subject.

Black Americans are not afforded the same opportunities as white people, especially when it comes to economic success and career opportunities. Only four of the current Fortune 500 CEOs are Black. None of those four are Black women, in fact, black women are starting small businesses at 4.5 times the rate of all other business owners in the U.S. largely due to significant challenges in the workplace. The median wealth for white families is around $140,000, that is 12 times that for Black families. Even more concerning is that by 2053, the median wealth for Black families is projected to fall to zero.

As of 2018, Black women earned only 61 cents for every dollar earned by white men and women of color are more likely than any other group to experience workplace harassment, racial bias, and lack of advancement. According to a State of Women in Business Report released in 2019 by American Express, the average black woman in business earns an average of $65,000 in revenue, and that number has trended down over the last five years.

What Created The Racial Wealth Gap?

Today’s racial wealth gap in the black community dates back to Jim Crow-era practices like segregated education, redlining, and job discrimination. African Americans were historically blocked from higher-paying jobs and homeowner ownership opportunities and that ultimately prevented wealth building. The 1935 Social Security Act did not afford coverage to domestic and agricultural workers, many of whom were African American, and its requirements for residency and payroll information also excluded a large number of African Americans working menial, “off the books” jobs. This created cyclical poverty in Black America. According to the Pew Institute, children under the age of 18 are the most impoverished age population of Americans and African-American children are almost four times as likely as white children to be in poverty.

So How Can Brands Support Black Businesses, Now?

  1. Business Education and Supplier Development

Small business ownership is the only way to build true wealth in America. By supporting more Black-owned businesses through education, sponsorship, and supplier development, corporations can create more opportunities for Black business owners and their families. Supplier Diversity is not enough. No one wants to fill out another application online, and never ever get any opportunities. By being more intentional about supporting black business owners, this will allow more members of our community to build savings, acquire a home, build positive credit scores, have better educational opportunities and ultimately create generational wealth. Many Black entrepreneurs start businesses inspired by the richness of African American culture itself–Black-owned clothing stores, hair care and make-up products, and children’s toys while these services are needed in the community, these businesses will not sustain a community. More work must be done to encourage minorities to start businesses that could start high-grow businesses that could scale in areas such as technology, clean energy and regenerative agriculture, but they need investment, mentorship, access to capital and opportunity.

When minority businesses flourish, they hire people from their community. But banks turn down 8,000 loans a day in America, this practice has hindered that prosperity African-Americans and other entrepreneurs of color seeking small business loans. A 2017 study by the National Community Reinvestment Coalition actually found that banks were twice as likely to provide business loans to white applicants than Black ones and three times as likely to have a follow-up meetings with white applicants than more qualified Black ones.

Many African American business owners hire people who look like them. But because they are often forced to fund their own businesses with credit cards and personal funds due to the lack of bank loans or investment capital. This means that most Black-owned businesses don’t make enough money to pay employees, so they pay workers under the table or hire them as contractors at best.

  1. Review Your Procurement Practices.

Supplier Diversity has been around for over 30 years. How closely is it monitored at your company? How much is your spend with black businesses? Has it increased annually? Track closely direct and indirect spending with the procurement organization. Look at your annual spend internally with Black businesses and track it down to the secondary spend by your largest prime contractors.  Also, review the contract terms and payment practices of prime contractors, often then pay minority vendors late and squeeze the margin on the project from the minorities businesses on the team.

  1. Create Measurable Diversity Programs with Appropriate Budget.

Don’t just make statements in the annual report. Be accountable for your stated diversity policies and goals. Create specific programs to close the racial equality and wealth gap. One great example is  JPMorgan Chase Beefs Up Commitment To Build Black Wealth.

  1. Tie Compensation to Diversity Goals.

Don’t just look at your intern pipeline, hiring, look to retention and promotion goals tie compensation to the success of it. A good example, Uber ties senior executive pay to measurable progress on diversity goals. Blacks leave corporate jobs due to the racial climate and lack of promotion. Also, support and properly fund minority employee affinity groups. People in isolation need support from the company and each other.

  1. Police Your Environment.

If you want to know how to be an anti-racist, don’t ignore that racist cartoon that gets passed along in email. Be proactive about responding and reporting it. A good example: The company Activision has added additional resources and in-game reporting systems to identify and ban racist language in their online gaming environment.

  1. Look at the Demographics of Your Board of Directors. 

How many minority perspectives are on your Corporate Board of Directors? Public companies wishing to increase their diversity benefit the most by recruit candidates who also help improve cognitive diversity in the boardroom. If all you do it recruit people of color who have fully assimilated with the exact same background as the current board members that will not provide the diversity perspective been sought. Harvard Business Review has some advice on how to accomplish this kind of board diversity.

The Time Is Now.

The success of the black community is important for everyone. Drastic actions are needed to close the racial wealth gap and save the black businesses that are still hanging on. When black-owned businesses have a financial platform to stand on, they are good for business. Be visible with your success story. This can help your buyers get the message internally and your competitors externally may do more with businesses with people of color to keep up. When corporate dollars are used strategically, we will have a more inclusive and racially balanced economy.

Feel free to share...Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Share on Reddit
Reddit
Email this to someone
email
Print this page
Print

Filed Under: Business Inspiration, Grow Your Business, Leadership, Women in Business Tagged With: diversity in business, inclusivity, racial wealth gap, support black owned business

Fix Your Business Now!

Order SmallBizLady's new book Fix Your Business, 90-Day plan to Get Back Your Life and Reduce Chaos in Your Business. It includes the 12 Ps of Running a Successful Business and readers will finish the book with a new strategic plan to take their business to the next level.

About Melinda Emerson

Melinda F. Emerson, known to many as SmallBizLady is one of America's leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. Her latest ebook, How To Become a Social Media Ninja; 101 Ways to Dominate Your Competition Online was released in 2012.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Let’s Connect

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Let me send my best blog posts to your inbox each week.

Click Here to Sign Up!

Get 2 FREE Chapters of SmallBizLady’s Book,
"Become Your Own Boss"!

Become Your Own Boss Download Two FREE Chapters

Most Popular Posts

>Seven Ways to be More Profitable in Your Small Business
> 7 Ways to Attract Customers to Your Small Business
> 6 Tips for Managing Small Business Finances
> How to Run a Successful Multilevel Marketing Business
> 10 Ways to Grow Your Small Business With Instagram
> How to Sell on Facebook
> How to Get Over the Fear of Starting a New Business

Featured Videos

“12 Principles of Highly Profitable Businesses with Melinda Emerson” from Sonia Dumas
October 2020

#SmallBizChat LIVE from NYC
May 2017

MSNBC Interview
Top Tip: Never Let a Customer Down

National Speakers Association
Winter Conference 2016

Tune in to Exhale, Wednesdays at 9 pm EST, only on ASPiRE. Join the conversation at #EXHALETV

Fox Business
Five Steps to Becoming a ‘Social Media Ninja

MSNBC
The importance of job mentoring for women

#SmallBizChat Live
National Small Business Week: Q&A

Good Day Philadelphia
Expert Shares Tips on How to Become Your Own Boss

Google
Best Practice for Social Media

Testimonials

Become Your Own Boss is a must read if you’re thinking of launching a business of your own.
Jean Chatzky, Bestselling Author of Money 911 and Financial Editor of NBC’s Today Show
Great step-by-step advice for anyone looking to start their own business.
Andrew C. Taylor, Chairman, Enterprise Rent-A-Car
Melinda Emerson has written a remarkable book. It is essential reading for anyone seeking to make the transition from working girl to successfully working it, as an entrepreneur.
Cynthia McClain-Hill, Past President, National Association of Women Business Owners
The perfect companion for those planning to go out on their own. Melinda delivers firsthand practical advice on how to be the successful entrepreneur. Read it if you want to get it right the first time.
Kenneth L. Shropshire, Professor at the Wharton School of Business, University of Pennsylvania
If you are looking for a versatile speaker who can talk about how to grow small businesses or get started with social media, look no further.
Heather Van Sickle Executive Director, National Association for Community College Entrepreneurship (NACCE)
Her wit and depth of subject knowledge were entertaining and empowering. Melinda is definitely on our short list of seasoned entrepreneurs and business leaders we look to invite back in the near future.
Tennille M. Robinson Senior content & Event producer for Inc. magazine
Melinda Emerson, “SmallBizLady,” is an engaging and witty speaker and a great addition to any conference. Her terrific presentation and compelling delivery give people the information they need and want to become their own bosses and grow success… Read more
Laurie Dalton White Conference Director, Pennsylvania Conference for Women
Melinda Emerson has been a fantastic small business and social media resource for the Pitney Bowes team. Not only is she personable and easy to work with, but she also has an innate understanding of the small business audience. My marketing programs … Read more
Justin Amendola, Former VP, Global SMB Digital Strategy, Pitney Bowes

SmallBizChat

  • Twitter

Latest #SmallBizChat

How to Help Employees Still Struggling with Remote Work Open Graph

How to Help Employees Still Struggling with Remote Work?

Sure, work from home is easy for many of us. Remote working has lots of benefits of its own—no frustrating commute to the office, no office-floor distractions, and no colleagues intruding your workflow.  Many of us are much more productive and engaged now after the world went to lockdowns. However, many employees are still struggling […]

Recent Comments

  • Bada Business ibc on 5 Tips for Getting More Online Reviews for Your Small Business
  • Justin Marble on TikTok vs. Snapchat: Which One Is Better for Marketing? [Infographic]
  • sathya on 15 Mistakes Not To Make In Your Digital Marketing Approach
  • Agency Platform Ebrandz on TikTok vs. Snapchat: Which One Is Better for Marketing? [Infographic]
  • Sejal on 15 Mistakes Not To Make In Your Digital Marketing Approach

#SmallBizChat

  • SmallBizChat Archive
  • @SmallBizLady

Business Advice

  • How to Start

SmallBizLady Store

  • Products
  • Free Chapter

Get In Touch

  • Write For Us
  • FAQ
  • Be a #SmallBizChat Guest
  • Contact Us
Copyright © 2019
Quintessence Group
PO Box 280
Drexel Hill, PA 19026
(610) 352-0680
Privacy Policy · Refund Policy

Copyright © 2021 · News Pro Theme on Genesis Framework · WordPress · Log in