August 21st 2023.
The value of entrepreneurship has long been a major influence in the Black community, making it an essential contributor to the nation’s economy. In recent times, the devastating impact of the pandemic and ongoing socioeconomic battles like lack of access to capital to open or expand ventures have made it increasingly challenging for Black entrepreneurs trying to advance in the highly competitive business mainstream.
National Black Business Month is a historic annual event that provides a platform for consumers and proprietors to support Black businesses. According to the US Small Business Administration, there were more than 3.2 million Black-owned businesses in 2018, employing over 1.18 million workers. Minority-owned firms totaled about 1.1 million, and 2.4% of those were Black-owned.
The roots of National Black Business Month stem back to 2004 when August was designated as such by two Black entrepreneurs - engineer Frederick E. Jordan and John William Templeton, president and executive editor of eAccess Corp. Jordan wanted to showcase and encourage Black business owners like himself, after enduring major obstacles. The duo aimed to “drive the policy agenda affecting the 2.6 million African American businesses, to highlight and empower Black business owners all over”.
The history of Black entrepreneurship can be traced back to the late 1700s, when free and enslaved Black people opened small businesses, like barbershops and tobacco outlets. In 1900, Booker T. Washington founded the National Negro Business League - now called the National Business League. It is America’s oldest and largest trade group for Black businesses. In August 1970, the late Earl G. Graves, Sr., published the first issue of BLACK ENTERPRISE, which served largely as a guidebook for Black entrepreneurs.
Four years ago, BLACK ENTERPRISE celebrated the 45th anniversary of its roster of the nation’s largest Black-owned businesses - The BE 100s. This tribute included 45 milestone moments, illustrating the broad impact on Black business and economic development, and American industry over four decades. It featured some game-changing entrepreneurs and disruptors.
Nationwide Insurance has been at the forefront of driving Black business development and advancement. It has expanded business opportunities and increased procurement dollars to MBEs as part of its diversity, exclusion, inclusion efforts. Jordan and Templeton have advocated that government officials and community leaders also address structural barriers that hinder Black businesses.
Patronage is needed now more than ever, as many Black firms are rebounding from the pandemic and have experienced a tougher time doing so than other groups. Supporting Black businesses is crucial for this and other reasons, like promoting diversity and inclusion as Black businesses tend to hire more diverse employees and invest in their communities. It has been estimated that Black entrepreneurs can earn over 10 times more than non-Black business owners, helping trim the racial wealth gap and promoting economic balance.
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