4 reasons you should support black-owned businesses
Published: July 23rd, 2020, at 1:06PM E.T
By: Victoria Agwam
In NYC, African Americans account for 22% of the population yet only 2% of business owners are black. This statistic is very telling of the economic inequities present not only in New York but in America.
Image credits: Associated Press, Jermail and Brandi Shelton: business owners of Just Add Honey Tea
The number of active business owners in the United States declined by 3.3 million or 22% over the crucial two-month window from February to April 2020. Black-owned businesses experienced a disproportionate 41% drop (Latinx 32%, Asain 26%, white 17%). America lost about 450,000 active African American businesses as the pandemic intensified.
AEO( Association for Enterprise Opportunity) calculations show that if Black-owned businesses were able to reach employment parity with all privately held U.S. firms, about 600,000 new jobs would be created with $55 billion in gains to the economy.
As of now, 96% of black-owned businesses are non-employer firms, compared to 81 percent of all firms in the United States
Historically disadvantaged groups, such as Chinese, Japanese, Greek, Jewish and Italian immigrants have used business ownership as an avenue towards economic advancement.
The national percentage of business owners in the essential industry is 76%, however, African-Americans only 66% of black business owners are in the industry. This places them in an unfortunate spot during a pandemic where non-essential industry personnel suffer the most financially