Insights on the Movement to Support Black-Owned Businesses
Owners of black-owned businesses may have increased
opportunities to attract new customers due to recent
societal changes.
July 22, 2016
Recent events involving the African-American community are
alarming and distressing. But the resulting call within the
community to support black-owned companies may have the
potential to be game-changing for some small businesses.
“Although many recent events have been unfortunate, the
black community has awakened to the fact that they can
create opportunities and use resources within their own
communities,” says Phillip Dunn, a BOB (Black-Owned
Business) advocate and CEO of
A
Seat At The Table,
a company that seeks to generate more business for BOBs.
“We’ve recently seen a reconnection of sorts within the
culture [that's] bringing Black Americans closer together,”
says Dunn. “The ongoing events have forced the community to
look inward for solutions.”
The African-American community has definitely been shocked
into action, adds Shekira Dennis, civic leader and
co-founder of the
Houston Justice Coalition.
“The economic driver is to ensure that we are supporting
black-owned and -operated businesses by recirculating our
dollars in the African-American business community.”
Money Makes a Statement
Misty Starks, CEO of
Misty
Blue Media,
a public relations and content
creation company, agrees. “Many black Americans feel that if
we can’t get justice and equality in our neighborhoods,
schools, at work and in the court system, we’ll use the one
thing we know will get attention and spark change, and
that’s historically been money. We can chant, we can march
and we can create catchy hashtags on social media, but it
all falls on deaf ears until money is involved. This
movement to patronize black businesses is definitely
offering smaller, unknown businesses a lot more visibility
and opportunity.”
As a result of the movement, some consumers are taking the
time to actually research African-American businesses and
patronize them, adds Dennis. “This will benefit small
businesses and bring some long overdue exposure to their
community.”
We’ve recently seen a reconnection of sorts within the
culture [that's] bringing black Americans closer together.
The ongoing events have forced the community to look inward
for solutions.
—Phillip Dunn, CEO, A Seat at the Table
As black consumers use word-of-mouth tactics to bring
visibility to BOBs, newer small businesses may benefit from
the call to "buy Black" by being able to start off with a
sufficient customer base from within their community, adds
Dunn. “In addition to an increase in revenues and income for
BOBs, the migration will provide them with opportunities for
growth, such as hiring more staff, which drives down the
unemployment rate, and expansion into new markets.”
Historically, black-owned businesses have tried to market to
the black community. But many BOBs have faced a lack of
consistent support and acknowledgement, believes
Robert Van Arlen,
an international speaker, trainer
and coach. “Recently, the press has caused the black
community to galvanize and support. Black businesses that
have always advertised and marketed towards the community
are also finding it easier to retain existing consumers and
gain new ones.”
Take Advantage of the Movement
In order to continue to ride the change in tide, black
business owners who act with a sense of urgency may be able
to attract, secure and retain this new influx of customers,
as well as existing ones, believes Dunn. “This will require
a transformation in thought leadership, operating practices
and historical beliefs about black consumers, which could
result in increased entrepreneurship in the black community.
As an increasing number of individuals become comfortable
with the level of support from within the community, they
will be more likely to risk starting and operating a
business.”
When black business owners do get an increase in business,
Dunn advises being prepared. “If you own a small restaurant
with 42 chairs operating near full capacity every day, you
may not be readily able to effectively absorb a five to 15
percent increase in customers,” he says. “It’s important for
BOBs to anticipate this recent upswing and staff
accordingly. Otherwise, some new consumers may revert to
prior spending behaviors and choices.”
Van Arlen suggests seizing the opportunity by developing
marketing materials that engage the community, such as
websites, flyers and radio ads. “It’s also a great time for
black-owned businesses to look for sources of capital if
needed, because any expenditure in marketing has the
opportunity to produce a greater ROI.”
Perhaps most importantly, if you’re going to succeed at
increasing business, you may want to overcome your fear of
failure, believes Alexander Joyce, president of
ReJoyce Financial.
“Be passionate about what you’re doing and what you stand
for. If you are providing a service or adding value, execute
with a purpose and never lose sight of your goal.”
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