Buying and investing in Black owned businesses is a new trend for some who seek to protest the injustices currently affecting African-Americans. Many localities have begun boycotts in support of Black owned businesses to help increase the economic status of African-American communities.
According to a Massachusetts Institute of Technology (MIT) study titled, “Race and Entrepreneurial Success: Black-, Asian-, and White-owned Businesses in the United States”, a substantial portion of Black owned businesses are overall worse off than white and Asian owned companies. The study notes slavery and Jim Crow laws as underlying factors that can influence the different outcomes experienced by Black businesses.
“I believe the 60s integration hurt us more than it helped,” said former business owner, Damond Johnson, who is participating in the buying Black movement. “Yes, we wanted equality, but when we integrated, we stopped buying Black because of envy, or wanting to be seen as equals, but in the 50s all our goods and services were owned by Blacks.”
The MIT study also states Black business success is influenced by a loss in capital to expand companies. This can include wage disparities, loan discrimination, and a lack of available investment opportunities.
Morgan State University professor Jared Ball who studies mass media relations said, “Even if (Blacks) changed the way they invest money, it would not make us equal and it would not lead us to a situation where we are powerful and secure and on par with the elite, because the knowledge of certain financial deals is not offered to many minorities.”
Although scholars observedpre-business disparities, it is still unclear what the post-business differences are. Prior research alleges that lower levels of education, less owned assets, and entrepreneurial household teachings attribute to the number of unsuccessful Black owned businesses.
The research noted other races have an advantage with inheritance money received to jumpstart business endeavors. It also mentions that children in households with successful business owners are likely to develop effective business tactics.
Alan Benson, owner of Benson Group LLC, a business-consulting firm, said Black entrepreneurs should align with other successful businesses to learn effective tactics.
“A Black father told me, ‘I taught my children to go out and get a job, but just really thinking, I should have not only taught them how to go out and get a job, but also to look at how to create a job,’” said Benson.
Alexander Burks is a business professional who recently inquired about having his windows tinted at multiple Black owned auto mechanic shops in Indianapolis. After companies didn’t return his phone calls or told him materials were out of stock, he was serviced at a non-minority owned shop that price matched. Burks said, “We have to do better. I can’t support you if you’re not supporting yourself.”
Burks’ accounts of inconsistencies with some local Black owned businesses proliferates a narrative that other African-Americans have shared. In an unofficial survey conducted by Recorder reporters, several respondents stated that many local Black businesses have a lack of customer service and overpriced or unavailable products.
Johnson, who is committed to buying Black owned products, said, “Today, we have a negative stereotype of Black business. But now, we are starting to see that we need to control our spending power, because money is how our local and federal government is swayed. Numbers are good but money is what solidifies (politicians) stance on issues.”
He continued, “We are starting to pull our money back into ourselves… first banking, then community grocery stores and from that, buying land to grow produce and a trucking system. With that, we can start distribution of our goods. Then, we can demand the banks to loan to us, since we have invested with them. But they should do credit counseling classes for those who qualify for the loans, so they will do better with their earnings.”
He said changing the way Blacks operate business can help minority communities. “We have to change our thinking, our habits, and our materialistic ways to keep our resources and system in control, which will benefit us. We just have to plan, then stick to the blueprint.”
