How to find black-owned Businesses near you

The inherent constraints that black entrepreneurs encounter, such as a lack of access to start-up and other types of finance, result in a massive economic loss.

According to Chan-Denise Budhoo who is the co-founder of Black Nation, a global app that promotes black-owned businesses, those losses could go a long way “to helping black families, helping their communities, and allowing them to have the wealth and the resources to be able to live an abundant life.”

“From Reconstruction to Jim Crow to the present day, our economy has never worked fairly for Black Americans—or, really, for any American of color,” Treasury Secretary Janet Yellen remarked at a Martin Luther King Jr. Day event on January 17.

Yellen's words were a recognition that the United States' economic regulations are racially biased, banning the intergenerational transfer of wealth among Black Americans, among other things.

White households had a median net worth of $188,200 in 2019, according to the Federal Reserve, this was 7.8 times that of their Black counterparts, who had a net worth of $24,100.

This wealth disparity has ramifications in a variety of areas, including business ownership, which is significantly impacted by individual and family wealth. 

Despite the fact that Black people make up 14.2 percent of the population, there were only 2.3 percent (134,567) of “employer enterprises”, which can be seen as businesses with more than just one employee, owned by Black people in 2019.

Brookings released a publication saying, "To Expand the Economy, Invest in Black Businesses" in support of the Path to 15|55 project, which aims to increase the percentage of Black-owned employer firms.

What is the Path to 15|55 project?

“Path to 15|55 is a collaborative initiative, among experts from every sector, designed to grow Black businesses and their communities based on research that proves: if just 15% of Black-owned businesses are able to hire one more employee, the American economy could grow by $55 billion.”

Black-owned retail firms face more hurdles than other companies, based on reports gotten from eMarketer, amid a challenging retail climate for most small businesses. According to the US Census Bureau's Annual Business Survey, Black business owners held only 1.4 percent of all retail firms (633,160) in 2019 (the most recent data available).

Business owners admitted that “they lack the social capital and networks needed to invest in technology, research and development, and innovation.”

A McKinsey report revealed more challenges. It showed that Black entrepreneurs received just 1% of venture capital funding. And that while Black Americans are more inclined than any other ethnic group to start businesses, they face harsher obstacles from the start.

According to McKinsey, “too often, these and other barriers lead to shortfalls—just 4% of Black-owned businesses are still in operation after three and a half years, compared with an average of 55.5% for all businesses.”

It also reported that, in comparison to white business owners, 47 percent of Black business owners' loan requests were approved, compared to 75 percent for white business owners.

Before the COVID-19 epidemic, 42 percent of Black-owned firms were regarded as robust and secure, compared to 73 percent of white-owned businesses. McKinsey reported.

With these challenges faced by black-owned businesses, it is clear that they need every form of support they can get.

Here are a few reasons to support black-owned businesses.

1. To close the racial wealth gap

The foundations of today's racial wealth disparity may be traced back to Jim Crow-era tactics like redlining and job discrimination, which excluded African Americans from higher-paying occupations and homeownership prospects, preventing them from amassing wealth.

Black-owned businesses can help to boost the flow of wealth to black families and the areas where they reside and operate. Over time, this will help narrow the racial wealth disparity.

2. Job opportunities are created

When there is a great demand for Black-owned businesses, they become more competitive. As these businesses are supported it helps to create new business prospects. Entrepreneurship promotes economic growth and provides a pathway for low-income households to achieve middle-class status.

As a result, these families will have more purchasing power and influence, allowing them to patronize more local and international Black-owned businesses and encourage the development of additional jobs.

3. Local economies are stronger

According to 2017 research by the National Community Reinvestment Coalition, white applicants were twice as likely to receive business loans as Black applicants, and white applicants were three times more likely to have follow-up meetings than more qualified Black applicants.

When Black-owned businesses are supported, it benefits families, employees, and other business owners, as well as attracts community investors who provide banking services, loans, and financial literacy education—all of which help to strengthen the economy.

How to contribute to the support of black-owned businesses

1. Support Black Businesses by shopping locally.

Carry out research on who owns a Black-owned business in your neighborhood, and where they are located. Rather than purchasing a product or service that is less expensive due to mass production, support Black-owned businesses that will benefit more from your patronage.

As these small businesses receive support, there will be greater demand for their goods and services. Increasing revenue to Black-owned businesses will result in more affordable, locally produced goods that have a positive influence in your neighborhood.

2. Join forums and groups

You can participate in different groups on various social media platforms and websites that provide additional resources for Black-owned businesses. Consider contributing sponsorship or mentorship to these firms if you have the skills and resources to do so.

3. Create awareness on social media

Social media is such a powerful tool today, various movements have been pushed with the aid of social media and it can’t be neglected seeing how much advantage it can bring. You can use social media to raise awareness of Black-owned businesses.

Use the #BlackOwnedBusiness hashtag and encourage your friends and family to do the same. Follow Black-owned businesses on social media and share their content to help them expand their audience and brand exposure.

How to find black-Owned Businesses

There are various Apps, markets, and directories that make it easier to locate a black-owned company that can sell you a product or service, either locally or online.

Some of them are;

Black Nation

Rameish Budhoo, an entrepreneur, founded Black Nation in 2018. It is the first black-owned social directory. According to a Black Nation spokesperson, “The name of the App was crucial. We wanted the name of the App to reflect its vision and purpose, which is Black empowerment and Black ownership, but most importantly Black unity, thus the name Black Nation.”

Black Business Green Book

It was launched by a progressive nonprofit civil rights advocacy organization known as colors of change. It is a digital directory where consumers can discover Black-owned brands.

Use Black Business Green Book to browse different categories, including home goods, health/wellness, art & photography, food & drink, fashion/clothing, booksellers, and body/beauty. You can also shop by state or online-only sellers.

We buy Black

The largest online market for Black-owned businesses is WeBuyBlack.

To find things from Black sellers on WeBuyBlack, type the product name into the "What do you need to find" field at the top of the site's homepage. Books, apparel & accessories, jewelry, children & toys, art & collectibles, health & beauty, home & living, gaming, and holidays are among the categories available.

eatOkra

eatOrka, a Black-owned restaurant directory, was founded by Anothy Edwards and Janique Bradley in 2016.

You can search by cuisine and location on eatOkra. You can order delivery or navigate once you've found the restaurant you want to visit.

According to information on the company's website, eatOkra's mission is "to provide a food-themed directory that encourages fellowship through one specific avenue, Black food."

You can also recommend a company to be listed on the app.

I am Black Business

I Am Black Business is a nonprofit organization whose mission is to "empower and uplift existing Black businesses." The website and app serve as directories of local Black-owned companies. You can look for new places to support and search for specific services.

Its goal is to assist Black business owners in leveraging technology to grow their reach and profit margins.

Support Black Owned

Support Black Owned is a dedicated search-engine for Black-owned businesses that was founded in 2012. You can find a business using the SBO app or website's state search, category search, global search, or site search features.

SBO not only assists customers in supporting Black-owned businesses, but it also serves as a communication link between customers and owners in order to improve customer experiences and products.

Black-owned businesses and quality product/service

For Black-owned businesses to continue to thrive, they must get all the support they can get in the form of patronizing them and also referring them to someone.

While this is a good way to promote Black-owned businesses, business owners or retailers should as well ensure that their products and services are top notch and can compete with others in the marketplace.