Helping Women Bridge the Gap: Why You Should Support Black-Owned Women Businesses

Do it for the culture! Supporting black-owned women businesses is becoming increasingly more necessary. The number of black-owned women businesses continues to grow year over year, with African American women accounting for the largest segment of minority-owned businesses in the United States.  In 2018, 41% of minority-owned businesses were owned by African American women but they only accounted for 15% of the total revenue generated by minority-owned businesses. 

 

Black women have made strides with regard to the number of women who opt for entrepreneurship. This alone is plenty to be proud of! But there’s levels to this. In a society where inequalities persist, there’s always room for progress. Collectively we’ve managed to buy into a culture of entrepreneurship, but now it’s time we harness its full power.

 

 

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Disparities Among Women-owned Businesses in the United States

In the 2018 study conducted by American Express, “The State of Women-Owned Businesses” it is noted, “If revenues generated by minority women-owned firms matched those currently generated by all women-owned businesses, they would add four million new jobs and $1.2 trillion in revenues to the U.S. economy.” Non-minority businesses accounted for 78% of the total $1.8T generated by women-owned businesses in the U.S. When this figure is considered in conjunction with how brands respond to the interests and needs of African Americans, it suggests that we have the potential to impact change through our collective buying power. 

 

Economic Wealth Gap in the United States

Huge economic disparities continue to exist with Black Americans being edged out of resources and opportunities that could increase their economic mobility. Here are some blaring insights from “The Economic State of Black America in 2020” by the Joint Economic Committee:

  • The unemployment rate remains 50% higher for Black Americans.
  •  The median wealth of Black families ($17,000)—is less than one-tenth that of White families ($171,000).
  • The typical Black household earns a fraction of White households—just 59 cents for every dollar. The gap between Black and White annual household incomes is about $29,000 per year.
  •  Much less than half (42%) of Black families own their homes, compared to almost three-quarters (73%) of White families.

 

The problem of economic disparities negatively impacting Black Americans is so comprehensive that the solution will have to be just as involved. Through doorways that already exist and the building of new tables, we can make an impact. We can help women bridge the gap by supporting black-owned women businesses! 

 

Benefits of Supporting Black-owned Women Businesses

Supporting black-owned women businesses is good for everyone: Black women, Black families, and communities. Increasing our support of black-owned women businesses will: 

  • Keep money in the community and strengthen local economies. 
  • Help close the economic wealth gap by increasing revenue and creating jobs. 
  • Provide examples of leadership and entrepreneurship for current and future generations. 
  • Advocate for the interests of Black Americans by demonstrating support for brands that speak to the Black experience through $1.3T in buying power held by Black Americans. This subsequently holds other companies accountable as well when they realize that a large segment of their consumer population is yielding power with their dollars. 

 

Supporting black-owned women businesses alone isn’t the answer to healing systemic economic disparities BUT it’s a necessary contributor and will have a profound impact on how Black Americans are treated when they pull their seat up to the table. 

 

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Check out some of the black-owned women businesses participating in our #Represent program. 

BLK + GRN

Trade Street Jam Co.