Big corporations have a long history of squeezing small firms and putting a massive burden on low-income communities, including Black owned clothing stores. For instance, the presence of Amazon in Seattle led to rising costs for housing and forced out mom-and-pop shops.
Diversity is a critical ingredient in economic viability that boosts communities, efficiency, and resilience. In a green economy, holistic sustainability is not possible without the inclusion of all.
Close the Racial Wealth Gap
We can trace the roots of the present racial gap in wealth to Jim Crow’s practices of redlining and discrimination in the workplace that kept African Americans from higher-paying jobs and homeownership opportunities which ultimately hindered wealth creation.
In 1935, the Social Security Act did not offer coverage to domestic and agricultural workers, a majority of which are African American, and its rules for residency and pay details also excluded the massive amount of African Americans working menial, “off the books” jobs, and relocating to the North in the era of Jim Crow.
Presently, the average wealth of white families is around 12 times higher than that of black families. One-four households of blacks have no net worth or have a negative value as compared to just one in ten white families that have no wealth, and in 2053, the median wealth of black families is predicted to drop to zero. Small businesses have long been wealth-builders for the country.
By supporting more black-owned businesses, Green Americans can create more significant opportunities for saving and property ownership, as well as credit development and generations of wealth.
Improves Local Economy
When small-scale businesses prosper, they also benefit their communities. A study from 2017 conducted by the National Community Reinvestment Coalition discovered the banks were twice more likely to offer business loans to applicants of a white background than to Black ones.
If the consumer sector accounts for 70 percent of the US economy, think of how directing some of that money to black-owned companies across the nation could achieve. Forty-eight percent of small-scale business purchases are recycled locally as opposed to just 14 percent of the money circulated by chains.
Helping black-owned businesses helps families, employees, and business owners in general, as well as attracting community investors who offer banking services, loans and help in promoting financial literacy – all factors that contribute to the economy.
Celebrates Black Culture and Serves Communities
Many Black entrepreneurs set up businesses inspired by the riches of African American culture itself – Black owned clothing stores, hair care, cosmetics products, and toys for children are only the most prominent examples.
There are also black-owned businesses designed to provide access to services that are specifically tailored to the needs of the community. These types of businesses lift communities and instill an appreciation for the residents. If you choose to support black-owned businesses, get the products they offer that are worth the distinctive character.