4 Strategies to Support Black-Owned Businesses in Their Growth and Sustainability

It’s no secret that Covid-19 has been devastating for small businesses nationwide, but what’s less known is the disproportionate impact it’s had on Black-owned businesses. While this might not be surprising to Black business owners themselves, the sheer extent the recent New York Times analysis has been a wake-up call for many.

Everyone knows that Covid-19 is decimating small businesses across the country; fewer are aware that the negative impact of the pandemic has fallen disproportionately on Black businesses. This revelation serves as a stark reminder of the inequalities ingrained in American business practices. The traditional model of community-based commerce is fading as consumers increasingly turn to online giants like Amazon, posing a significant threat to local businesses. This article will delve into the reasons behind the pandemic’s severe impact on Black-owned businesses, explore survival strategies, and outline how we can all contribute to their recovery. We’ll also provide resources for business owners to increase visibility and boost sales during the holiday season.

Unequal Impacts

The pandemic’s impact on Black business owners is deeply concerning. According to a New York Times report, over 40% of Black business owners reported being out of work in April, during the peak of the economic downturn. This starkly contrasts with only 17% of white small business owners reporting the same. These figures, derived from an analysis by Robert Fairlie of the University of California, Santa Cruz, paint a bleak picture.

Black-owned businesses have been disproportionately affected by the coronavirus pandemic, making it even more important to support them. The Times article further highlights how the pandemic exacerbates existing inequalities faced by Black businesses. For instance, Black Americans are more than twice as likely than other Americans to die from the coronavirus and are much more likely to experience police brutality. From a tech perspective, the data reveals a concerning trend. Look a little deeper, demonstrating that struggling Black businesses are cutting back on social media and digital marketing efforts to cope with the financial strain. This, unfortunately, makes them less visible and less competitive in the online marketplace.

The Digital Retail Revolution

The American retail landscape has been undeniably transformed by technology. Even back in 2016, voice search constituted one in five searches, according to Google, and today, most consumers turn to online giants like Amazon for their shopping needs.

Voice search accounted for one in five searches as long ago as 2016 according to Google, and most people will visit one of the huge online marketplaces (Amazon, mainly) to look for items to purchase. This digital shift disadvantages businesses with limited technological resources or smaller budgets, widening the gap between them and larger companies that can afford to invest heavily in digital advertising. Consequently, many Black-owned businesses struggle to keep pace with their white counterparts in an increasingly online-centric consumer market. As of 2020, white-owned businesses still dominate online advertising. This disparity extends even to specialized sectors like payment systems, where Black-owned businesses often offer fewer options compared to their white-owned counterparts. The cumulative effect of these factors places a disproportionate burden on Black business owners. So, what can be done to address this pressing issue?

4 Ways to Support Black-Owned Businesses (Or Promote Your Own)

Let’s address a common misconception: many guides advising people on how to can support their local Black-owned businesses often suggest simply searching for Black-owned alternatives to their favorite stores online. However, this approach falls short, which brings me to my first point…

1. Radically Rethink Your Shopping Habits

The reality is that many Black-owned businesses, especially smaller, community-based ones most vulnerable to economic hardship, lack websites. This absence is a significant factor contributing to their vulnerability: research shows that 48% of people to online marketplaces before considering local options. Therefore, supporting local, Black-owned businesses requires a more substantial shift than merely finding a Black-owned equivalent on Amazon. It demands a conscious effort to consider every purchase as a political act. In essence, preserving these businesses requires transforming our shopping habits. Instead of relying on Amazon, we need to actively seek out small businesses within our communities and prioritize them in our purchasing decisions. Related: August is Black Business Month. Here are some ideas to show your support!

2. Set Spending Goals and Track Purchases from Black-Owned Businesses

Thankfully, various tools can facilitate this transition. The My Black Receipt campaign gained traction due to the growing frustration over the lack of support for Black-owned businesses. Utilize it to monitor the proportion of your spending allocated to Black-owned businesses.

The My Black Receipt campaign became popular because people were tired of the lack of support for Black-owned businesses. You can use it to keep track of how many of your purchases are made in Black-owned stores. Numerous websites can assist you in making a conscious spending commitment. Consider exploring HelloAlice’s database of Black-owned businesses across the US or Charity Navigator’s list of vetted charities and nonprofits, an organization dedicated to women’s health, education, and social services.

3. Amplify Your Favorite Black-Owned Brands

When supporting these businesses, take the extra step to bolster their online presence. Help them expand their online reputation by sharing your positive experiences on social media, leaving positive reviews, and generally raising awareness for stores with limited or non-existent online visibility. Word-of-mouth referrals are invaluable, driving sales and fostering growth.

4. Participate in #BlackOwnedFriday

May 2020 witnessed a surge in online searches for Black-owned businesses, a trend that has persisted in subsequent months.

In May of 2020, there was a huge surge in search interest for Black-owned businesses, and this interest has remained elevated in the following months. Recognizing this shift, Google, in collaboration with the US Black Chambers, Inc., launched #BlackOwnedFriday, an initiative encouraging American consumers to support Black businesses during the 2020 holiday shopping season. Here’s how you can contribute:

  • Shoppers: Explore these resources from Google to discover new businesses to support. Spread the word by sharing these resources with friends and family, and leverage social media to amplify the campaign using the hashtag.

If you’re a Black business owner, add Google’s Black Business Owner badge to your Google My Business listing and your website.

The Path Forward

By collectively taking responsibility for our actions, we can prevent the demise of local, Black-owned businesses. Let’s all commit to transforming our shopping habits for the better. To reiterate, here are four key ways to support Black-owned businesses in your community:

  1. Reimagine your approach to shopping by prioritizing local businesses.
  2. Utilize tools to monitor and increase your spending at Black-owned businesses.
  3. Champion your favorite Black-owned businesses through reviews and word-of-mouth marketing.
  4. Actively participate in the #BlackOwnedFriday initiative.
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