Big
companies have a history of oppressing small businesses and putting a heavy
burden on low-income communities. For example, Amazon’s presence in Seattle
caused rising housing costs and pushed out local mom-and-pop shops. But
diversity builds economic vitality, uplifts communities, and promotes
productivity and resilience. For a green economy, holistic sustainability is
impossible without the inclusion of all.

1. Closes the
Racial Wealth Gap

We can trace the origins of today’s racial wealth gap to Jim Crow-era practices like redlining and job discrimination which segregated African Americans from higher-paying jobs and homeowner ownership opportunities that ultimately prevented wealth building. The 1935 Social Security Act’s requirements for residency and payroll information also failed to provide a safety net for the large number of African Americans working menial, “off the books” jobs and migrating North at the time.

Today, the median wealth for White families is about 12 times that for Black families averaging around $140,000, and 1 in 4 Black households have zero or negative net worth compared to less than 1 in 10 White families without wealth. Even more concerning is that by 2053, the median wealth for Black families is projected to fall to zero.

– ADVERTISEMENT –

Small
businesses and entrepreneurs have been longtime wealth builders in our society.
By supporting more Black-owned businesses, Green Americans can create more
opportunities for meaningful savings, property ownership, credit building and
generational wealth.

2. Strengthens
Local Economies

When
small businesses flourish, so do their communities. But banks often hinder that
prosperity by discriminating against African American and other entrepreneurs
of color seeking small business loans. A 2017 study by the National Community
Reinvestment Coalition found that banks were twice as likely to provide
business loans to White applicants than Black and 1 and 3 times as likely to
have follow-up meetings with White applicants than more qualified Black ones.

If consumer spending accounts for 70% of the entire US economy, imagine what directing some of that spending power to Black-owned businesses across the country can do. 48 percent of small business purchases are recirculated locally compared to only 14% of what’s circulated by chain stores. Supporting Black-owned businesses, in turn, supports families, employees, and other business owners, as well as attracts community investors who provide banking services, loans, and promote financial literacy–all things that build economic strength.

3.  Fosters Job Creation

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Many
African American business owners fund their own businesses due to the lack of
capital mentioned earlier. This means that most Black-owned businesses are sole
proprietorships that don’t make enough money to pay employees. 2012 US census
data showed that Black-owned businesses created 1 million jobs compared to
White-owned businesses which created almost 56 million.

In
2018, the unemployment rate for African Americans fell to 6.6%, which was
almost double that for white Americans and higher for other minority groups.
Since Black-owned small businesses are likely to hire from the local community,
supporting them can foster the job opportunities people need to achieve
financial stability.

4. Celebrates Black
Culture and Serves Communities

Many
Black entrepreneurs start businesses inspired by the richness of African
American culture itself–Black-owned clothing stores, hair care and make-up
products, and children’s toys are just a few examples. And some Black-owned
businesses are created to bring access to services specific to the community’s
needs.  Sol Sips, an affordable vegan
beverage company founded to bring healthier organic juices to Brooklyn’s
Bushwick neighborhood, is a great example.

These
kinds of business ventures uplift communities, fostering a sense of pride in
the people that live there.

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5. Holds other
Companies Accountable

By
now you’ve probably heard about Gucci’s highly offensive sweater design
resembling blackface. While Gucci’s under fire now for all of the decision
making that went into the design’s approval and eventual release, it’s not an
isolated incident. Many large companies vocally support minorities and their
diverse cultures but practice policies that keep systems of injustice intact.
Whether it’s H&M’s unsound marketing, Starbucks’ removing people from its
store, or Facebook’s hiring diversity problem, African Americans and other
minorities often bear the brunt of corporate discrimination.

When you choose a Black-owned business over problematic companies, you vote with your dollar by divesting from these kinds of practices and hold companies accountable.

6. Visibility and
Representation in the Green Economy

The
prosperity of a green economy depends on the celebration of diversity by and
for all peoples. The green movement has historically and presently wrestled
with a lack of diversity in its activism and representation, but Green
Americans can change this.

– ADVERTISEMENT –

Bringing
attention to Black- and minority-owned businesses can go a long way in
demonstrating that the green movement is everybody’s movement and when
minority-owned businesses have a financial platform to stand on, they inspire
more people to join the green economy. You can find minority-owned businesses
on Greenpages.org, our database of certified members of the Green Business
Network.

Mary Meade and
Sytonia Reid are contributors to Green Business Network America. For further
info visit www.greenamerica.org/blog/6-reasons-support-black-owned-businesses.

BOSS: THE BLACK
EXPERIENCE IN BUSINESS

Learn
about the untold story of African American entrepreneurship, where skill,
industriousness, ingenuity and sheer courage in the face of overwhelming odds
provide the backbone of this nation’s economic and social growth.

To learn more about Black businesses that could use your support, visit our Black Business Spotlight page.

For more info on the film visit www.pbs.org/wnet/boss.