Why It’s Important to Invest in Black Businesses

Feb 12, 2021 Article by: Kyle Bernard
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“Support Black businesses.” You’ve probably heard this statement a lot recently. “Buy Black.” You’ve probably heard this phrase too. The Black Book Directory prefers “invest in Black businesses” or “invest Black.”

Why?

One alludes to charitable assistance. The other indicates growth. It’s a subtle nuance with profound implications.

Here’s why and how.

Investing in Black-Owned Businesses Is Important

An investment into a Black-owned business is an investment into the Black community—an investment in one another. Black businesses provide more than products and services. They’re safe community spaces where people come together, share, and connect. They’re for the culture, and the people.

Black businesses grant access to information, programs and resources that are more closely aligned with the needs of the Black community. The multidimensional nature of Black-owned businesses makes investing in them far more important.

Equal Access to Opportunities

Black people in North America don’t have access to the same economic and career opportunities as other demographics. This is especially true for Black women. When compared to their white male counterparts of similar age, education and experience, the disparity is evident.

Here’s a brief list of ways Black businesses are denied access to financial opportunities:

  • Bank loans: Denied at higher rates than other demographics
  • Loans: Granted at higher interest rates
  • Businesses closures due to the negative impact of gentrification of Black neighborhoods
  • Higher levels of scrutiny

These factors and many others disproportionately affect the Black community, potentially widening the racial wealth. The solution is complex. But one thing is certain, investing in Black-owned businesses is an important step. 


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