Hi Friends! Did you know that August is Black Business Month? I didn’t know until this year! Back in 2004, Frederick E. Jordan, an engineering entrepreneur, and John William Templeton, president and executive director of scholarly publishing company, eAccess Corp., started the yearly celebration while reflecting on the challenges Jordan faced as a new business owner. During the month of August, “individuals and businesses recognize Black-owned businesses across the country.” (NextDoor Editorial Team, 2020)
As a brand new business owner in the startup phase, I have been networking in a few different online spaces. What I have heard, especially in community with Black women, is there are plenty of challenges they have faced when starting their businesses. Being in community with them has shown me that I am not alone, as a Black woman/woman of color, trying to launch my own business.
As I began researching to start my own business, I found that Black business owners, like many business owners, face challenges when starting a new business. However, I started to see a trend in the gap of percentages and how it affected Black business owners in their first few years.
- Black business owners receive less business financing, less often, and at higher rates. (Perry, 2020)
- According to Federal Reserve numbers, 80.2% of white business owners receive at least a percentage of the funding they request from a bank. Only 66.4% of BIPOC (Black, indigenous, or people of color) business owners can say the same. When BIPOC-owned firms do get funding, the amounts tend to be about $30,000 less than comparable white-owned businesses, while their interest rates are about 1.4% higher. (Perry, 2020)
- Only 1% of Black business owners obtain business loans in their first year. 7% of white-owned businesses get loans within their first year. (Perry, 2020)
- Only 18% of Black business owners receive assistance from loan officers in completing applications, while 59% of white business owners receive help from loan officers. (Perry, 2020)
Even with the challenges of being a Black business owner, I am encouraged by the many business owners who did not let these challenges stop them. I am encouraged to keep going. That’s why I will be celebrating Black Business Month throughout the month of August!
My hope and prayer is that you will join me in celebrating too! I will post a blog here once a week and will have posts each week and through the month over on Facebook and Instagram! I will be sharing ways to uplift and support Black-owned businesses through encouragement, faith, helpful resources, stories, people I’m learning from, and more!
- NextDoor Editorial Team. (2020, August 21). What is National Black Business Month and How Can My Business Show Support? NextDoor Business. https://business.nextdoor.com/local/resources/what-is-black-business-month-and-how-can-my-business-show-support
- Perry, N. (2020, December 16). 20 Black-Owned Business Statistics for 2021. Fundera. https://www.fundera.com/resources/black-owned-business-statistics