Supporting Black Women-Owned Businesses

Not Just in February but All Year Long

As we close out Black History Month, we wanted to recap one of our powerful WIN Network podcasts from this month as a reminder that the only true way to honor Black history is to make impactful, intentional changes all year long—not just for 28 days a year. This past month, we had an inspiring conversation with co-founder and CEO of Mixtroz, Kerry Schrader, MBA, about the importance of supporting Black women entrepreneurs.?

The Challenges Faced by Black Women Owned Businesses

Frustratingly, the disparity between minority and non-minority women is increasing, rather than decreasing.? In 2019, minority-owned businesses averaged $65,800 in revenue, compared to non-minority women-owned businesses, which averaged $218,800. And this disparity has an enormous impact on the U.S. economy. In fact, four million new jobs and $981 billion in revenue would be added if the average revenue of minority women-owned firms matched that of white women-owned businesses. While Black women-owned businesses made up the highest rate of growth after non-minority women, new job creation and revenue were the lowest of all women-owned businesses. In 2019, the average revenue for Black women-owned businesses was only $24,000.

Although there have been some improvements over the past several years, a Black woman who owns her own business continues face challenges that others simply do not have to endure. For example, they are facing a decline in funding opportunities. According to a 2020 Bureau of Economic research paper, the average startup capital for Black entrepreneurs is just $35,205 compared to $106,720 for white entrepreneurs. However, only 1% of Black businesses were able to obtain a loan in their first year, as opposed to 7% of white businesses.?

Another study by Groupon and the National Black Chamber of Commerce found that 59% of Black business owners report falling victim to bias or racism when starting a new endeavor. The New York Times also found that Black business owners had a much harder time than white business owners finding lenders to work with for the Paycheck Protection Program.?

Supporting Black Women Owned Businesses

In our discussion with Kerry Shrader, we spoke at length about the many ways we can all support Black women owned businesses. Here are a few that are especially impactful:?

1. Be Intentional and Take Action with regard to Shopping with Black Women-Owned Businesses. Good intentions will only ever take us so far. We need action. And in this case, that action means the actual exchange of money for a product or service offered by a Black woman-owned business. After all, business does, in fact, come down to money. Without revenue, there would simply be no business. The Nextdoor app and Facebook groups can help point those who are not sure where to start in the right direction. Another great resource is the Official Black Wall Street Directory. This helps consumers search for not only e-commerce, but also brick and mortar stores that are owned and operated by Black entrepreneurs. We can also begin to budget specifically for Black-owned businesses and make sure that we reach the set goal each month.?
2. Write and Share Reviews of Black Women-Owned Businesses. A little goes a long way here. When we have a great experience with a Black woman-owned business, we must make sure to review it online. It does not take much time on our part to review a product or store, but the positive impact will last much longer for the business owner. According to ReviewTrackers.com, in 2021, 88% of all reviews came from Google, Yelp, Facebook, and TripAdvisor. Leaving a review can help the search engine optimize analytics and bring more traffic to the business, so our transaction lives much longer than the day of purchase.
3. Recommend Black Women-Owned Businesses in Person and on Social Media. This goes beyond writing a review of a company online. Rather, this is about a more personal recommendation to those in our own circles to create attention and drive customers to the business. Posting photos on our social media platforms and telling family and friends about our experiences (and always making sure to provide the contact information and website) offer incredible support. It costs nothing to keep the conversation going, give a recommendation, and speak the name of a Black woman-owned business. When we speak about these courageous, powerful women when they are not in the room, we not only give them a voice, but we amplify that voice for all to hear.

Finding an Inner Circle

Many entrepreneurs feel alone and as if they are facing an uphill battle. And as we’ve discussed, being a Black entrepreneur just adds to the already long list of challenges that many face when starting a new business. “We have extra obstacles. When we walk in the room – and we are the minority,” said Schrader, “it helps to look for people who look like us, because strength and confidence come in numbers.”

As for Shrader’s advice to Black women business owners, she encourages them to find a trusting circle. Although it may be difficult, being vulnerable and allowing our authentic self to show will help build those relationships—relationships that are based in unending trust and boundless support. With a strong inner circle, we are more equipped to help bring each other up. But, according to Shrader, we need to eliminate this long-standing idea of a glass ceiling. “We must not feel good about shattering the glass ceiling. Instead, we need to remove it. If it is shattered, we’re still going to bleed as we’re pulling others through. And we’ve bled enough. We just need the ceiling gone at this point.”?

Supporting Black women-owned businesses is not just the 28 days of February during Black History Month. Supporting Black history and Black entrepreneurs is about those intentional changes we make all year long. We can start now with a continued focus on supporting, growing, and nurturing Black women entrepreneurs and their businesses. In the words of Martin Luther King Jr., “The time is always right to do what is right.”

More About Kerry Schrader

Kerry Schrader, a former HR executive, believed that leaders should be able to make more meaningful connections while at events. A belief that would soon help to catapult the idea for Mixtroz to the forefront of her mind. Mixtroz is a SaaS platform which allows its users to build relationships and interact with one another outside of their normal social circle. Schrader felt it was important to put the human first and technology second. With her knowledge, her ability to share her experiences in the corporate world and being a straight shooter, Schrader was able to build a successful tool for leaders and their team. For more information, visit https://www.mixtroz.com/.?

By:?Shakenna Williams, Ph.D.