Supporting black-owned businesses, 14 powerful reasons why

Supporting black-owned businesses is a strong decision. We are talking about supporting businesses that theoretically will support us.

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Supporting Black-Owned Businesses and Organizations

Supporting black-owned businesses is great for black economic growth. Here are some ways you can support black-owned businesses.

Here are a few ways to take action. This post shows the best ways to support black-owned.

Supporting black-owned businesses starts with these 4 approaches

• Capital Access
• Economic Stability
• Social justice
• Entrepreneurship Opportunities

Capital access

Black-owned businesses are more restricted than white-owned businesses. Small-business loans have more obstacles for black than white-owned businesses.

The Federal Reserve compared large and small bank loans. In one survey, 54.5% of small-business owners reported no barriers.

But only 30.3 percent of black owners had no issues. This gap showed that companies owned by whites obtain twice the financing.

According to the Kauffman Firm, only 1% of Black business owners got a business loan. But 7 percent of white-owned firms got the same.

Most Black-owned businesses use credit cards. While 30 percent of white-owned companies got loans. Companies owned by blacks have higher interest loan rates.

Economic stability

A recent U.S. Chamber of Commerce study found that financing continues to be a barrier. In 2007 five percent of black-owned businesses got financing for expansion.

But 10 percent went to white and Asian-owned businesses. This means the credit crunch has had a long-lasting impact.

Supporting black-owned businesses reverses lower capital resources available to them. They are at greater risk of being sacked by shareholders.

The debt gap accounts for half the difference between white-owned and black-owned companies. A black-owned company’s leverage ratio is a sign of its financial risk.

So if you support black-owned businesses, they will depend less and less on these predatory financial practices.

Social justice

Many people are focused today on protests and boycotts. By supporting black-owned businesses, you also support these groups.

Keep in mind that supporting black-owned businesses doesn’t mean it’s “just about the money”. Support means, that employing people of color, will have a positive impact on our community.

Poverty and unemployment have long been used against us. It exacerbates crime, which in turn sends us to the industrial prison system.

Recent initiatives are now supporting black-owned businesses. Black entrepreneurs struggled to get financing for a long time.

They are now able to do so. The 15 Percent Pledge is an initiative that retailers donate 15% of their shelves to Black-owned brands.

Supporting Black-owned businesses in this way addresses inequality. It also celebrates black culture.

By supporting black-owned businesses, these efforts strengthen institutions that assist minority entrepreneurs.

Entrepreneurship opportunities

There are many resources to help black entrepreneurs. The Minority Business Development Agency is one.

It has offices throughout the country, supporting black-owned businesses. The MBD helps create export-ready products and secure funding.

They can also market their products through the MBD’s website, Black Owned Everything. MBD is also popular on Instagram.

And it’s possible to be featured on the account and get national exposure.

Black-owned market share

African American business increased 17% between 2014 and 2017. But black-owned businesses aren’t successful in market share as white-owned ones.

White-owned businesses made up 81% of all companies in 2017. Hispanic and Asian-owned businesses were 9.7 percent and 5.8 percent.

Supporting black-owned businesses in strategies

Here are 3 points in supporting black-owned business strategy:

• Marketing strategy.
• Operational strategy.
• Growth strategy.

Black businesses have the most problems with business strategies. They deal with situations that affect their business.

Marketing Strategy

One of the biggest problems that black business owners face is marketing. Most black-owned businesses Hustle to get their startups off the ground.

But they struggle when it comes to proper marketing. You would be amazed to find so many black businesses still stuck in the ghetto mentality.

You know, the handing out of Flyers, DVDs, publicity hounds, viral chasing, and the list goes on. None of these things actually target your true market.

What is the most important question you will ever face? As a black business owner, that question is this…

Who are you, and why the hell should anyone be interested in your business?

Operational strategy

As black business owners, we all want to hire our own people. We’ve all dealt with systemic racism in the American workforce.

We know how it has severely impacted the black community. We also understand how this culture has been systemically used against us.

But one of the biggest threats used against the black community is poverty. Poverty has been so bad for so long, that it has caused severe mental illness.

Issues like these cause challenges in operating a black-owned business. One of our guests on The Hustlers Corner NYC said that he dealt with theft.

And, guess who was stealing from him? Yep! You guessed it! OUR OWN people! How the hell do you deal with this?

There are also the operational challenges of

• hiring and firing employees,
• managing inventory,
• delegating responsibilities,
• putting your trust in the people you delegate those responsibilities to,
• haggling over prices,
• dealing with wholesalers, Middleman, retail prices, etc.

If you’re not good at wearing these hats while running a business, then you really shouldn’t be in business at all. And it doesn’t matter if you are black, white, or any other ethnicity.

Growth strategy

I’m going to keep this one short and sweet. If you really want to build Legacy wealth, you have to grow.

The problem with this growth is that the bigger you become, the bigger your problems become. The same still rings true today.

With great power comes great responsibility. In all my life I have never seen a fall like the fall of a Titan.

Do you remember the animated movie about Moses? it was called “The Prince of Egypt”

Do you remember in that animated movie what Pharaoh said to his son Ramses? He told him “one weak link is all it takes to bring down a mighty Dynasty”.

I can’t begin to tell you how true this is. I’ve been through recession after recession after recession here in America.

Each recession has gotten worse than the last. But it was the billion-dollar corporations that I have seen during those recessions that disappeared.

One of them was a 100-year-old company called Lehman Brothers. Junk bonds spelled the death of that billion-dollar Corporation.

I will never forget when I made a pizza delivery in 2019 on Wall Street, New York City. It was a small upstart.

They were dealing in some sort of trading. A guy threw a wad of fake cash on top of the pizza and asked me if I wanted it?

This is what I told him.

“Bro I’ve been delivering here in New York City for 40 years. I’ve seen guys like you come and go all my life”.

“You can make all the money you want but you can’t take it with you when you die.

And this little company making all this boiler room money will be no different than all the rest”.

High risks in business:

Here are 7 points in high risks:

• Financial Risks: High risk in investment choices, working capital, and poor management.

• Economic Risks: High risk in interest rate changes and demographic movements.

• Production Risks: High risk in materials, products, or cost of production.

• Human Resource Risks: High risk in fraudulent employees, and negotiation.

• Legal Risks: legal infringements, new legislation, or business laws.

• Management Risks: Poor management decisions,  corporate policies, and strategy.

• Market Risks: High risk against competitors, changing consumers,  piracy, distribution, and marketing strategy.

Handle risks in business:

What African Americans and other business owners need to know is how to handle these business risks. Can you answer these questions?

1. Do you know the risk?
2.  If so, is there any to be chosen? 
3. What is the impact of a risk should it occur?
4. What would it cost to own an organization? 
5. Do you know how to market financials?
6. You need to understand the risk of a third party.

Risk in the third party:

4 points in the third party:

• Transfer the Risk to another party more competent to handle it. 

• Insurance, joint ventures, and strategic alliances.

• High risk of managing or minimizing the odds.

• The best way to ignore the Risk is to brace yourself and accept the impact.

Supporting black-owned businesses Risks in Communication

Communication is very important if you’re going to succeed with your business. The goal is to target the audience by appealing to their values.

The risk in this approach is audience Behavior. If you aren’t careful how you approach communicating with others you can easily piss them off.

Remember that you now live in the social media age. And social media is overrun by

• fake hair,
• fake eyelashes
• fake lips
• fake breasts
• fake boobs
• fake butts
• fake profiles etc.

All you have to do is go to Instagram, and Onlyfans to see what I mean! Now you can add to this madness…

• prosperity preachers milking communities, for cash,
• BLM leadership real estate investments,
• endless internet marketing scams,
• cultural appropriation,
• small businesses bloodsucking the black community
• Politicians dancing like black people to win votes (Da Fuq?)

And it becomes pretty easy to see why communication is so important!

Publicity Hunting

The very worst way to approach your audience is by publicity hunting.

Publicity hunting is terrible for trying to be seen as someone interested in what matters to you. And the reason is too many publicity Hunters in up being shallow, insincere, patronizing, phony, hypocritical people.

Here’s a tip.

If anyone TRIES to make you think of them as a good person, believe me, they are not. You do not have to get people to see you as something you are not!

So please, please, PLEASE DON’T DO THIS!

People who do this always end up being the opposite of that attempt. And anyone who tries to WIN your trust is NEVER a person you should EVER trust!

Conclusion

So there you have it. Here are some really great tips for supporting black-owned businesses. Believe me, it’s not easy, but it doesn’t have to be deceptive, phony, and blood-sucking either.

None of these things give value. And that is the key word here. The key word is value. The greater the value, and the greater the sincerity of that value, the greater your success will be.

From The Hustlers Corner NYC thank you for stopping by.