National Black Business Month
August 7, 2023
At a Martin Luther King Jr. Day event, U.S. Treasury Secretary Janet Yellen said that “from Reconstruction, to Jim Crow, to the present day, our economy has never worked fairly for Black Americans—or, really, for any American of color.” Her remark referred to economic policies put in place to favor white Americans and prevent Black Americans from attaining economic parity.
The month of August was designated National Black Business Month by historian John William Templeton and engineer Frederick E. Jordan Sr. in 2004 to bring attention to the more than two million Black-owned businesses operating throughout the country at the time. Almost twenty years later, there are now more than three million Black-owned businesses in the United States. Two-thirds are smaller, family-run concerns with fewer than 10 employees, while a few are much larger, complex businesses with assets in the billions.
According to the U.S. Census Bureau, a “Black-owned business” is defined as a business that is at least 51 percent Black-owned.
The growth of African-American businesses has been impressive, especially in the midst of the COVID-19 pandemic, during which Black businesses made significant gains as compared to other groups. Yet there are still a disproportionately small number of Black-owned businesses in terms of Black population, and African-American business owners still face a disproportionate number of hurdles, such as difficulty accessing capital and the fact that their employees are more likely to need to work at more than one job to support themselves. About half of Black small-business owners have had to use their personal savings to support their business at one time or another.
National Black Business Month reminds us of the importance of supporting Black-owned businesses by spotlighting their contribution to their local economies and the greater U.S. economy, to their founders, and their employees. Black-owned businesses revitalize their own communities and have a ripple effect that uplifts surrounding communities as well. They provide job opportunities and reduce wealth disparity. Highlighting the contributions of African-American businesses fosters diversity, and can highlight your organization’s commitment to opportunity for all.
So recognize National Black Business Month on your organization’s website and in the company newsletter. Encourage members of your organization to learn about African-American history and the challenges that Black entrepreneurs have had to face, and to shop at and invest in Black-owned businesses. Successful Black-owned businesses benefit us all.