In recent years, Black-owned businesses have experienced significant growth, yet they continue to face challenges in closing the disparity gap. Throughout Black History Month, these businesses have been in the spotlight, but their success and struggles extend far beyond February. “We saw the boom start just after the pandemic; people were ready to start their businesses,” explained Anita Williams, the Program Manager and Co-Founder of the Indy Black Chamber of Commerce.
“They understood they might be able to make money.”
One inspiring example is the restaurant co-founded by Monique Hawkins and her daughter Kara Hawkins, which serves fashion-style wings and more. The mother-daughter duo got their start in 2021 at the AMP at 16 Tech. “It’s been so beautiful that we have been able to be inspiring and be an example of women making history,” said Kara Hawkins.
Their Black and women-owned business has now expanded to five more locations, including Lucas Oil Stadium and Gainbridge Fieldhouse. According to a Yelp Economic Report, Black-owned businesses grew by 59% in the Indianapolis area, more than double the national average of 24%. This growth can be attributed in part to increased visibility and support from consumers.
In June 2020, the business-review website Yelp introduced a feature allowing consumers to search specifically for Black-owned restaurants. This feature spurred significant interest among consumers, driving a 65% increase in online traffic, more searches and calls, and higher sales both through food orders and in-person visits. Despite the growth, challenges remain for Black-owned businesses.
Black-owned businesses’ ongoing growth and challenges
“A lot of the disparity has to do with the confidence of having a business,” Williams noted. “In other cultures, they have generations of people who’ve had businesses, started businesses, and even had the financing and the connections with the bank to introduce their legacy to other people.
We don’t always have that.”
The wealth gap between Black and white Americans has widened significantly since 2010. One in five white households hold over $1 million in wealth, while for Black households, that number is much lower. Black-owned businesses comprise just 3 percent of all businesses and generate a smaller portion of the revenue, despite making up 14 percent of the U.S. population.
Black entrepreneurs often face greater challenges in securing funding through grants, venture capital, and loans. Many investors assume Black-owned businesses won’t appeal to white customers, considering them financial “risks.” As a result, Black founders rely more heavily on business loans, yet they are less likely to qualify for them and often face predatory interest rates. As nationwide and local efforts continue to roll back some DEI initiatives, Williams emphasized the need for support right now.
“It’s important that you include us, our dollars, and our businesses — that’s something the Black Chamber already recognizes and that we’re working toward to be an advocate for small businesses.”
The Indy Black Chamber of Commerce, revived 10 years ago, helps support local businesses through classes and connecting owners to funding and resources. The city of Indianapolis has also conducted a disparity study to identify barriers that business owners might face related to the city’s contracting process. Prioritizing Black-owned businesses year-round is crucial for economic vitality and equity.
By intentionally investing in Black-owned businesses, we amplify their relevance, necessity, and value in the marketplace. Supporting Black-owned businesses is a tangible way to help correct over 400 years of stolen wealth, labor, and resources, creating a more just and equitable economy where all can thrive.
Photo by; RDNE Stock project on Pexels
