Supporting black businesses is the most active way of closing the racial wealth gap between the blacks as a historically oppressed group. This would encourage the cycle of economic growth. Support is instrumental in increasing the growth of new businesses and creating employment. For the black community in the North America, seeing representation in the big books would boost the morale of the young entrepreneurs in the community. This will eventually lead to a more diversified economy which is objectively better for everyone.
What Are Black-Owned Businesses?
A minority business enterprise (MBE) is defined as a “business [that] is at least 51 percent owned by [citizens who are Asian, Black, Hispanic, and Native American] or, in the case of a publicly owned business, one or more such individuals own at least 51 percent of the stock,” according to the National Minority Supplier Development Council (NMSDC) of the United States. The minority owner(s)/shareholders should influence the administration and everyday operations.
Further, a Black-owned business is defined as one whose owner is a “citizen of African ancestry,” which includes both foundational black citizens and African immigrants, according to the NMSDC.
A recent survey shows that 96 percent of all Black-owned businesses in the US are non-employer companies. This means that these firms have no paid employees but are subject to tax from the government. These businesses are usually extremely small-scale and contribute little to the economy. These companies are usually left out of official statistics making it difficult to get a full look at the community. The remaining 4% are employer companies. The study shows that almost 30% of Black-owned employer firms operate in healthcare. Some of these companies have grown to become major forces contributing to economic growth.