The state of Black-owned businesses + directories for finding them

Supporting Black-owned businesses is a tangible way to foster economic equity and empowerment in the black community. These businesses contribute significantly to local economies, create jobs, and offer unique products and services that enrich our communities. However, these businesses also face unique challenges. This post explores what it’s like to be a Black entrepreneur today and ways to support Black-owned businesses.





Personal perspectives



Tomeka Lynch Purcell , a money mindset coach and author of “Morgan Saves for College,” tells Lendio that her business is definitely doing better now than it was before the George Floyd incident. “People are finally starting to pay attention to us, and we have come together as a community to become stronger,” she says. “But there is still a long way to go as there is much inequality in the business sector for Blacks.”



Purcell is referring to what has been called the summer of social justice, which produced not just protests, but also overwhelming support for Black businesses. According to Yelp’s 2020 2nd Quarter Economic Impact Report , there were more than 2.5 million searches for Black-owned businesses on the company’s website between May 25 and July 10, compared to just 35,000 searches during the same time frame in 2019.



In addition, behemoths like Facebook announced plans to invest an additional $200 million in Black-owned small businesses and nonprofits. (A previous Facebook announcement had already committed $1 billion annually to diverse suppliers.)



It’s a lot of money, but considering the number of Black businesses trying to stay afloat, these types of initiatives may not provide enough life rafts.



“As a Black business owner, I’m facing many of the same issues that other small businesses are facing,” says Marcus Johnson, owner of FLO Brands in Washington, DC. He says the main issue is just uncertainty in the marketplace. “While optimistic, due to the election results, I’m concerned about the middle-class employees’ ability to continue to find and maintain employment that will allow them the disposable income with which they bolster the economy and our lifestyle products.”



Johnson owns a wine brand and is also a jazz musician, and between the two, he believes the saving grace for his business is that he’s actually in the “therapy business,” which greatly appeals to stressed-out adults by adding a level of normalness. “Our online wine sales are increasing, as well as our music streaming across all of the streaming platforms,” he says. “Also, now that consumers are used to the virtual live performance experience, we are starting to receive more inquiries about performance opportunities.”



He definitely believes that Black-owned businesses have been beneficiaries of the George Floyd tragedy. “While it hurt many of us to witness his death, it forced many non-Blacks to look around to see whether they were contributing to a culture where such environments were acceptable in their industries.”



As a result of companies addressing their lack of inclusiveness and making concerted efforts to find Black companies, products, and services, Johnson says he has secured a new production deal, distributors, and retail outlets for his wine brand. “In both the wine and music industries, we are still underrepresented at the executive level, but this new movement toward the engagement, promotion, and development of Black-owned businesses is a tremendous help.”



Terrill Currington is the CEO of Celurius , which provides coaching and consulting to entrepreneurs, and he says the pandemic has delayed one of his land development projects. “Because of the racist lending practices I’ve encountered since my mid-twenties, I fund my businesses with my own cash to avoid this toxicity.”



And Currington says the pandemic has definitely affected his other business plans. “The cash I would normally put into the business has been diverted to float our household during this crisis,” he explains. 








Looking out over the Black-owned business landscape



Expanding her view to other Black small businesses that she is aware of, Purcell says that some are doing well, but others are not. “The ones that are doing well are pivoting to the current climate, and the ones that are not are standing in the same place,” she says. “However, everyone is doing everything they can to hold on.” 



And the ability to pivot seems to be the determining factor between companies that are above water and those that are not. Johnson says that most of the business owners that he knows are hanging in there or actually thriving—but admits that it varies by industry and specialty. “My friends and family that are in highly-specialized luxury medicine aren’t doing so well right now, but I don’t think that’s a Black thing,” he says. “Black colleagues of mine from law school and business school continue to pivot, and my Black friends in wine are doing okay, as well.”



On the other hand, he says the Black entrepreneurs he knows who seem to struggle are in the music field as artists. “Many of them have left the live performance field altogether since COVID restrictions have decreased their ability to generate income.” Johnson also laments that most business schools don’t teach the business aspects of the music industry. “Many of these traditionally educated artists don’t understand that they are the CEOs of their artistry and thus have many different ways to pivot to non-performance jobs.”   








How to best support Black businesses right now



Since Black businesses encounter more obstacles and challenges than other groups, it would make sense that a greater level of effort is required to help these establishments gain equal footing. Purcell applauds the creation of directories for Black businesses as a step in the right direction. “Also, we need more on a city, state, and countrywide level when it comes to government funding and regulations, especially for loans for small businesses in different sectors, as well as PR and marketing highlighting certain black businesses that are not getting the attention they deserve.”



Currington agrees that funding would certainly be a step in the right direction. “Business grants of $10,000 to $50,000 would be a powerful countermeasure to the lack of capital extended from white lending institutions,” he says.



Learn more about minority business loans here.



Johnson’s first recommendation is for the greater community to form professional relationships with Black businesses. He lists the following professions in particular:




Bankers



Stockbrokers



Angel investors and investment clubs



Accountants



Digital communications professionals



Lawyers




However, Johnson also believes that Black business owners should assess what they’re doing, so they can prepare and position themselves to be successful. He provided Lendio with a list of questions that Black and non-Black business owners alike can benefit from by answering honestly:




What’s my dream?

What does success look like for me and my business?





Am I engaged?

What business/industry am I really in?



Have I been following a plan? If not, would I be willing to do so?





Is my environment fertile?

What people, places, things, ideas, and capabilities do I possess to get there?



What people, places, things, ideas, etc., do I need to purge to get there?





Do I have a written plan?

Have I outlined my product or service, distribution, price, promotion, and target audience? 





Am I executing my plan?



Do I regularly reflect on each of these stages, so that I can refine each until they are so sharp that I can’t help but reach my goals?




“Lastly, when you see a Black business that is worthy of your praise, support, and recommendation, then please praise, support, and recommend them,” he says. “Post their products on your social media and tell your network why you support the company and how the product has added value to your life—and share the company’s URL.”








Directories to support Black-owned businesses



If you’re looking to support Black-owned businesses and are unsure where to start, we’ve compiled a list of seven directories that feature these enterprises. Check them out:




WeBuyBlack – An expansive online marketplace for Black-owned businesses selling goods ranging from clothing to home decor



Official Black Wall Street – Boasting the largest directory of Black-owned businesses and an app for easy navigation



Support Black Owned – A comprehensive directory allowing you to search by city and business type



Black Owned Brooklyn – A curated guide to Black-owned, Brooklyn-based businesses



AfroBizWorld – A global directory that highlights Black-owned businesses in various countries



I Am Black Business – A directory that helps you find Black-owned businesses and also provides tools for business owners



Black Pages – A directory with a long history of listing Black-owned businesses




Utilize these directories to discover and support Black-owned businesses, contributing actively to the growth and visibility of these enterprises.







Information provided on this blog is for educational purposes only, and is not intended to be business, legal, tax, or accounting advice. The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of Lendio. While Lendio strivers to keep its content up to-date, it is only accurate as of the date posted. Offers or trends may expire, or may no longer be relevant.



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