According to data from the U.S. Census Bureau, from 2002 to 2017, the number of Black-owned businesses with employees increased 31.2%. This forward momentum is something to celebrate. However, minority entrepreneurs still encounter difficulty obtaining startup capital, a lack of mentors, and social prejudices.
The covid-19 pandemic was not beneficial for minority businesses, disproportionately impacting them more than white-owned businesses. Many had to shut their doors or are barely profitable, struggling to sustain their American dream. So, when choosing products and services, change your shopping behavior and shop at minority businesses. The benefits of selecting a minority-owned business are great for everyone. Just look at a few reasons why.
The first and most obvious reason to choose a minority-owned business is promoting diversity. Minority-owned businesses celebrate employee diversity and leverage it to help better serve their customers. Not only do these businesses provide an amount of cultural insight that many others don’t have, but they better reach niche audiences within their market.
Some Black-owned businesses are created to service specific needs often overlooked by mainstream retailers, whether for hair care, apparel, or toys. This diversity also allows for fresh ideas from people with varied backgrounds and experiences, creating maximum coverage for clients. Then, of course, supporting minority-owned businesses brings a return on investment of customer respect and overall “good feelings” toward your brand and business.
The power of the community has paved the way for many business owners. When you choose to support black-owned businesses, you support black pride, unity, and self-determination. While that may be intimidating to some, it would mean the world to many families and communities.
Black entrepreneurship is a tool for survival in a world that does not want to see you win. When we choose to win against all odds, children grow up seeing successful entrepreneurs and a thriving community. It’s a domino effect; these businesses hire minorities while stimulating the local economy. These minority-owned businesses raise morale in disparaged communities and offer hope toward revitalization and having a voice in that process. Consumer spending accounts for 70 percent of U.S. economic growth, so imagine what directing some of that spending power to Black-owned businesses across the country can do.
Close the Wealth Gap
The racial wealth gap in the U.S. is a burden on minorities and the overall economy. Despite overall wealth increasing in median U.S. families over the last 20 years, the disparity between minority families and white families has become even more prevalent. This widening racial gap creates many disadvantages for minorities and Black individuals, families, and communities. This limits the economic power and prospects of minorities. The worst of all is that these effects are cyclical.
There is a real disparity between minority-led firms and other businesses in terms of established banking relationships. This impacts access to capital and creates an issue from the ground up, so we need to support these businesses.
Hiring a minority-owned business to assist your business or purchase goods and services is an excellent start to bringing these benefits to fruition. We support families, communities, and entrepreneurs when we start supporting these businesses. Next time you spend money at a company you frequent, think about what your dollar is doing. If it makes a difference, shop on. If not, consider taking your services elsewhere. TC Creatives was recently named in the top 10 minority-owned brand consulting firms by Visual Objects. We are proud of our heritage and assisting our diverse range of clients. TC Creatives has provided focused and wide-reaching services for the company for the entirety of their working relationship. This includes UX design, UI, overall brand presence and visuals, and more.