4 Best Ways to Support Black-Owned Businesses

According to data from the Pew Research Center, black-owned small businesses represent only 3% of entrepreneurship in the U.S. Although the number of black entrepreneurs is constantly growing, they still face numerous problems, including the lack of access to funding, partnerships, and mentorship. The challenges faced were especially visible during the COVID-19 pandemic. The Small Business Credit Survey showed that 92% of reports of difficulties with running companies were made by people of color. 

The trend to support black-owned businesses is becoming increasingly popular in America, allowing startup owners to establish financial independence for themselves and their families and bring new employment opportunities to the market. In the article, we have described the reasons for investing in black-owned businesses and proved why this is so important. 

Why Support Black-Owned Businesses in the U.S.

Unfair lending practices have plagued Blacks for years. The formal end of the racial discrimination in lending came with the Community Reinvestment Act becoming law in 1977. This resulted in significant progress for black businesses and the whole black community. However, the challenges with getting access to capital and mentors still exist. 

Small business owners of color face numerous difficulties finding lenders wanting to work with them. Supporting black-owned businesses in your area not only forces economic good but also reduces a significant racial wealth gap and continues Black culture. 

By purchasing their goods, you provide opportunities for black business owners to demonstrate their worth to potential lenders and increase their company's representation and visibility. 

Top 4 Ways You Can Support Black-Owned Businesses

While many black-owned businesses still encounter numerous problems, especially when it comes to finding an investor, there are many ways you can help them overcome the difficulties. Herein, you can explore these options. 

1. Investing in Black-Owned Businesses

While many Black Americans struggle with getting business resources, the best way to help is to patronize their company. Providing an investment will enable the founder to get started and foster the business's development. Consult with a business coach or another financial expert to explore the best ways to invest in startups. 

Business loans are the main financing option used to cover expenses related to providing a company. However, the problem with finding a reputable provider is still accurate. How to tell if a loan company is legit? Checking the details, like whether the company has a physical address and requires advance payment, can help you avoid dealing with illegitimate lenders. Furthermore, you can conduct a search of your local BBB website or contact your state's financial registration agency or banking oversight agency to ensure the company is registered. 

2. Becoming a Customer

If you don't have an opportunity to provide startup funding to small-business owners of color, another great place to start is to shop at their companies. Depending on your budget, you can find black-owned businesses on sites like Black Business Greenbook and ByBlack. 

3. Business Promotion

One of the best ways to help the business is to share your positive opinions about it. If you are a famous person on the Internet, promote the company you like on your social media channels. Other options to raise the visibility of a business and strengthen its position include writing reviews on sites like Yelp and describing your experience with it. 

4. Building Relationships

While most newly appeared companies have numerous problems, they typically don't have enough time to promote themselves and build their network. So, you can help black entrepreneurs by forming valuable relationships. 

A great idea is to invite them to present their goods and services in various community groups or join relevant business networking events and organizations. If you have valuable business contacts, share them.

Many organizations, such as Coalition to Back Black Businesses, Black Founders, or Black Business Association, offer support to minority-owned companies and help them build an inclusive future. 

Why Are Black-Owned Businesses Important? 

Black-owned startups continue to face numerous hardships caused by discrimination and prejudice. If you'd like to help them thrive and overcome the obstacles to success, there are many ways to do so. From becoming a company's customer and sharing your positive opinion about their work on your social media accounts to direct investing - there are a lot of available options to support newly appeared companies in fighting against discriminatory policies.