July 24th 2024.
As an Executive Vice President of the U.S. Black Chambers, I have seen firsthand the challenges and triumphs of Black business owners. The journey of entrepreneurship requires not only courage, but also resilience. It is a path filled with uncertainty, where we must constantly adapt and learn as we go. But for Black business owners, this journey often comes with even more obstacles. Racial disparities, harmful biases, and socioeconomic factors create a more difficult road compared to our non-Black peers, threatening our progress and financial success.
These barriers manifest in various ways, with 79% of Black small business owners experiencing racism from a customer in the last year alone, according to data from the Intuit QuickBooks Black History Month Survey. Additionally, nearly half of respondents have faced the fear of overcoming racial stereotypes that almost stopped them from pursuing their entrepreneurial dreams.
Despite these discouraging realities, the accomplishments of Black small businesses are even more significant. Today, many are finding ways to overcome the challenges at hand. In a time when most small businesses are struggling with employment, Black-owned small businesses are thriving. Despite comprising only 3% of U.S. employer firms, 71% of Black-owned businesses have hired additional staff in the past year, showcasing our importance in the larger economy.
As Black business owners continue to make strides, it is important to consider these tips for building successful and prosperous businesses that not only benefit ourselves, but also our communities.
First, do not be afraid to start small. Every great achievement starts with a small step. Whether it's opening a business or gaining one new customer, these seemingly insignificant actions can lead to future success. This is especially true for Black business owners, many of whom are already breaking new ground and taking risks in their communities and industries. In fact, data shows that 70% of Black small business owners are the first in their family to own a business. And more than 2 in 5 are innovators, offering unique products or services that are not widely available.
These milestones are worth celebrating, as they serve as inspiration for others in our community to pursue their passions. Starting small and focusing on quality allows for a solid foundation for long-term success.
Secondly, set high standards for your business. Professionalism is key in establishing trust and reliability with your customers. You should be compensated for the exceptional quality and service you provide. However, a concerning number of Black small business owners admit to undercharging for their products and services. With economic uncertainty, many are hesitant to increase prices. It is important to understand the value you bring to the table and to research what your peers are charging. Do not undervalue your business costs, including time, materials, and overhead, when setting prices. By educating customers about the quality and craftsmanship of your products or services, you can establish a realistic and transparent pricing model.
Additionally, do not underestimate the power of the Black community in your entrepreneurial journey. As a business owner, you have the opportunity to boost our economic empowerment. By supporting other Black-owned businesses, we can revitalize our local economies and ensure that the Black dollar circulates longer within our community. This not only helps us reach entrepreneurial success, but also supports the success of others in our community.
Lastly, find a balance between your personal and business finances. It may be tempting to use personal funds to cover business expenses, but it can hinder your personal wealth in the long run. While there is no definitive playbook for starting and growing a business, there are resources and tools available to help manage and stay on top of your business finances. Nonprofits like the U.S. Black Chambers and our national network of over 160 local Black chambers of commerce offer educational tools and financial resources to help you gain financial access and effectively manage your finances on your journey to entrepreneurial success.
The path to entrepreneurship may start with a vision and a dream, but it takes determination and resilience to succeed. The thriving Black businesses serve as a powerful reminder that with the right mindset and financial resources, loyal customers will follow. And with the support of the Black community, we can all move forward and build a brighter future for ourselves and our communities.
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