National Black Business Month and The State of Black Business
/Did you know that August is National Black Business Month in the U.S.?
Yes, it’s a whole month to recognize Black-owned businesses across the country. As a Black business owner myself as well as a managing partner at Next Street, which provides solutions for small businesses that have been systemically held back (such as Black and Brown owners), I am particularly excited for this month. Over the next few weeks, you can expect commentary from me on Black small businesses and its direct tie-in to the wealth equation.
I want you to have some context for Black owned businesses. There are approximately 2.5 million Black owned firms, including those with employees and those without employees, of the roughly 32 million businesses in the U.S. And, roughly only 125,000 of the 2.5 million Black-owned businesses have employees. When you compare these Black ownership numbers to the number of Black people in the population, which stands at 46.8 million people as of 2019, the Black ownership numbers are incredibly low.
I am raising awareness of these stats because of its connection to the tangible wealth equation. The median wealth of a Black business owner is 12 times higher than Black non-business owners, even when controlling for initial wealth, according to an AEO report on the state of black businesses. For the entire U.S. population (without taking race or ethnicity into consideration), the median wealth of a business owner is 5 times higher than a non-business owner. As such, when Black people own businesses, it contributes significantly more to their wealth equation. As such, small business ownership can be one important strategy for closing the racial wealth gap, especially for Black people.
As such, if you are a Black business owner, I acknowledge you and your efforts. I want to encourage you to keep executing on your business as you see fit, with the hopeful anticipation that it will contribute to your wealth. Be sure to check out your local government programs that are geared toward small businesses, particularly if you are a person of color. In Chicago, for example, where I live, you can receive free one-on-one business advising from the Cook County Small Business Assistance Program. The program can help you address the unique needs of your business, including acquiring new capital and customers, understanding financial, change and risk management, adjusting business models, and operating under new safety regulations.. High population of Black people, and they have been intentional about targeting people of color in their marketing efforts.
If you know Black business owners, ask yourself how you can support them with the B.I.A.S.E.S. framework introduced to you a couple of months ago - You can buy from businesses, invest in initiatives or programs, amplify the voices of those who are starting something new, start something yourself, expose and encourage future generations, or spread the wealth by sharing your knowledge with others..
A Wealthy Girl Corner
Consider creating a wealth circle to explore business creation or investing opportunities. Remember, a wealth circle is a community of like minded people, even if it’s only one person—a best friend, a spouse, or a family member—who is vested in your success and wealth. Your Wealth Circle will help you stick with the strategies such as starting a business. Do you aspire to create or join a wealth circle? Here are a few simple steps you can take:
Identify who you want in your wealth circle
Make the ask of these people
Plan your first wealth circle meeting and focus on what each person wants to achieve
For more on wealth circles, pick up a copy of my book where I share my experiences and give more strategies you can use.
