|Why buying black matters|
|Published Monday, November 16, 2020|
Black-owned businesses are essential in shaping our society and culture, however, they face adversity and financial disparity due to institutionalized racism. It’s our job to ensure the future livelihood of Black businesses.
Amid our worldwide pandemic and fight for racial equality, many movements have come to light, especially to bring awareness to Black-owned businesses to ensure equal economic opportunities. Why is it so important to buy Black? Black franchises and Black-owned companies are vital in promoting culture, providing an outlet to Black entrepreneurs and closing the racial wealth gap.
Black people have equipped our society with innovative music, food, technology, sports, etc. However, Black companies often lack equal financial opportunities. In a research study called “Racial Disparities In The Pathways Into Business Ownership” by economists Sandy Darity, Ph.D., and Derrick Hamilton, Ph.D., at Duke University, the professors found that Black-owned businesses make significantly fewer earnings.
"Black-owned employer business generates $666,168 in annual revenue sales while the average white-owned employer business generates $2,037,372, more than three times as much. Black-owned businesses persistently lag behind their white counterparts, appear disproportionately less in high-revenue-earning industries and fail at higher rates,” the report states.
Due to systemic racism, many Black companies also lack access to bank credit and financial resources to maintain business. The Federal Reserve Bank of Atlanta reported unequal funding: "In 2018, only 31% of Black-owned businesses received all the funding they applied for, compared with 49% of white-owned businesses." The discrepancy leads to future repercussions such as income inequality and increased poverty rates among the Black community.
Black people continue to fight racial barriers set in place by slavery, Jim Crow, mass incarceration and police brutality. Solving racial injustice is a complex and ongoing issue. We cannot merely repair centuries of violent discrimination, but we can change to create a future of equal employment.
You can download the Black Nation application to locate the nearest businesses near you and donate to organizations such as the NAACP. Buying Black means paving the way for future generations and combating institutional racism.
Jinger Callwood is a reporter with Elon News Network.
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