In light of National Black Business Month, the importance of supporting Black-owned businesses has gained greater recognition, yet the challenges we face remain substantial. Understanding these obstacles is important not only for creating a more equitable business landscape but also for supporting our collective economic growth. By supporting our businesses, you not only empower communities but also encourage more inclusive economic policies and an equal opportunity for all.
Let's explore three key challenges Black-owned businesses face on their journey of business success.
1. Encountering bias and stereotypes
People from all walks of life are familiar with the roadblocks that come before all the success. For Black-owned businesses, the issue is particularly detrimental because of historical prejudices and biases. It creates an uneven playing field from the start, potentially slowing down progress and limiting success. Assumptions about competence, credibility and customer prejudices are compounded obstacles that require extra effort, resilience and often a higher degree of excellence to break through the noise. This can lead to potential clients and partners doubting capabilities and choosing not to engage with businesses due to factors that are beyond our control. Overcoming these assumptions requires Black entrepreneurs to prove our worth constantly. That sounds demoralizing and exhausting, well, because it is. Despite these preconceptions and hurdles, there has been a notable increase in the number of Black-owned businesses in recent years!
2. Lack of representation in the market
Imagine this scenario: you have an amazing product or service, but you just can't seem to get noticed. Unfortunately, this is the reality for many Black entrepreneurs who struggle to get noticed in the market for several reasons, starting with visibility. Mainstream media frequently perceives these businesses as less marketable, overlooking them and, therefore, presenting fewer opportunities for exposure. When there's less coverage, that already becomes an uphill battle in terms of fewer customers and reduced sales. In a way, it's unintentional gatekeeping. Even when these businesses do receive media attention, it may not be proportional to the quality and innovation that these businesses bring to the table.
On a positive note, social media has been a game-changer for many small businesses including Black-owned ones. Platforms like Instagram and TikTok have enabled innovative marketing strategies, direct-to-consumer interactions and unique branding that allow businesses to thrive outside traditional media channels like media coverage or paying for TV commercials.
3. Getting in the loop of networking opportunities
When you think about entrepreneurs, a common misconception is that they're usually going about it alone for their business. While that can be true for some, many have had help from their peers and various established resources to guide them through the journey. It's no different for Black entrepreneurs, but getting into these circles isn't always as easy. Many networking events and business communities are dominated by people from a different background, making it difficult to form genuine connections. The feeling of being an outsider can also be discouraging. Getting partnerships, mentorships or any new business opportunities becomes much more difficult under those circumstances. For example, mentorships are invaluable when it comes to starting your own business. However, many mentorship programs lack diversity, making it hard to find someone who can give relevant advice and support. It's a gap that's hard to fill, making it easy for new entrepreneurs to feel isolated and uncertain about the decisions they make.
Here are a few of our founder and owner, Leandra's thoughts - For me, one of the best ways to overcome that feeling of isolation and uncertainty was to find mentors. As more of an introvert, it wasn't always easy to reach out and speak up, but I knew it was important. And, once I was able to form those relationships, it has become easier and easier to ask questions, share challenges and celebrate wins with someone else outside of my business that has been there and done that. I think finding and nurturing a mutually beneficial relationship with a mentor can be incredibly impactful for any business owner getting started and as they grow their operations.
The journey of Black entrepreneurship comes with even more challenges than those that were mentioned. Rooted in historical biases and systemic barriers, these obstacles can stifle the inspiration and ambition of aspiring entrepreneurs from all backgrounds. When opportunities to start and grow a business are limited, we risk missing out on a wealth of innovations, diverse businesses and valuable improvements to our quality of life. The good news is that we're starting to see more opportunities for people from diverse backgrounds in our society. Many programs and organizations like ours are working hard to support aspiring entrepreneurs and help them succeed. By encouraging diversity in business, we're opening the door for fresh ideas and new perspectives!
If you would like to learn about how to better support Black-owned businesses, check out our blog here.
Author: Gary Wong
What is one local Black-owned business you want to shout out? Feel free to share what makes them unique and what your favorite product or service is from them!
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About Stingray Advisory Group LLC: Stingray Advisory Group LLC is based in Grand Rapids,
Michigan, and is a proud member of People First Economy and the West Michigan Hispanic Chamber of Commerce. We help businesses thrive. By improving our client's sales over 60%, reducing their expenses and boosting their engagement by 40% or more, we enable our clients to refocus on what they love.
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