3 Reasons Why You Should Support Black Owned Retail Businesses
Big corporations have a long history of oppressing smaller businesses and putting massive burdens on lower-income communities such as the black community and black-owned retail businesses. For example, how Walmart’s presence in the US caused many mom and pop shops to go out of business.
But this doesn’t mean you can’t do anything about it, you can still use our purchasing power to help!
We all can join together and use our collective power to show big businesses our values and continue fighting against racial injustice.
Here are three reasons why everyone, including you, should “buy black”.
It Can Help Close The Racial Wealth Gap
The long history of the racial wealth gap we see today can be traced back to many decades ago.
Years of unethical practices like job discrimination and redlining have segregated many African American communities from bigger payout jobs and homeownership opportunities. All of this has prevented wealth building for black people.
Today, the average wealth for white families is about seven times higher than the average for Black families, with roughly one in four black homes having zero or negative net worth versus less than one in ten for white households.
By supporting black-owned businesses, you can create more opportunities for wealth builders in this society to help close this wealth gap.
Strengthens Communities And Local Economies
When small businesses grow, so do their communities. Considering that consumer spending accounts for approximately 70% of the US economy, imagine what redirecting some of that purchasing power towards black-owned local retail businesses can do.
According to studies, 48% of small business purchases are recycled locally versus 14% from big chain stores.
“Buying black” can therefore support thousands of local families, employees, and business owners and helps build more economic strength within the black community.
Promotes Job Creation
The 2012 US census showed that black-owned businesses created roughly 1 million jobs in comparison to white-owned businesses that made a whopping 56 million new jobs.
The most likely explanation for this statistic is that due to the wealth gap and lack of capital, black businesses generally don’t have enough money to afford employees.
The unemployment rate for African Americans is also generally much higher than in other communities in the US. For instance, in 2018, the unemployment rate for African Americans reached 6.6% (almost 2x that for white Americans).
Since black-owned businesses are more likely to employ individuals from their local community, supporting black businesses can therefore help promote new local job opportunities to people who deserve financial stability.