August is Black Business Month, a time to recognize and support the achievements of black entrepreneurs and business owners around the world. Black Business Month was founded in 2004 by John William Templeton and Frederick E. Jordan, two engineering entrepreneurs who wanted to highlight the contributions of black businesses to the global economy and society.
The Impact of Black Businesses on the World
According to the Global Entrepreneurship Monitor, there are more than 180 million black entrepreneurs in the world, representing about 14% of the total entrepreneurial population. These entrepreneurs operate in various sectors, such as health care, education, technology, entertainment, fashion, and more. They create jobs, generate wealth, foster innovation, and solve social problems.
Some examples of successful black businesses around the world are:
- M-Pesa, a mobile money transfer service launched in Kenya in 2007 by Vodafone and Safaricom. M-Pesa has revolutionized the financial inclusion and empowerment of millions of people in Africa and beyond, enabling them to send and receive money, pay bills, access loans, and save.
- IrokoTV, a video-on-demand platform founded in Nigeria in 2011 by Jason Njoku and Bastian Gotter. IrokoTV is the largest online distributor of African movies and TV shows, reaching over 15 million users across 178 countries. IrokoTV has also produced original content, such as ROK Studios and ROK TV channels.
- She Leads Africa, a digital media company and community founded in Nigeria in 2014 by Yasmin Belo-Osagie and Afua Osei. She Leads Africa provides content, events, and opportunities for young African women to achieve their professional and personal goals. She Leads Africa has a network of over 700,000 members across 135 countries.
- Maya Angelou Schools, a network of alternative schools founded in the United States in 1997 by James Forman Jr. and David Domenici. Maya Angelou Schools serve students who have faced academic and social challenges, such as dropping out, incarceration, or homelessness. Maya Angelou Schools offer academic, social, and emotional support, as well as career and college readiness programs.
The Challenges Faced by Black Businesses
Despite their positive impact, black businesses face many challenges that hinder their growth and sustainability. Some of these challenges are:
- Lack of access to capital: Black businesses often struggle to obtain financing from banks, investors, or other sources due to discrimination, bias, or lack of collateral. According to a report by McKinsey & Company, black-owned businesses in the United States receive less than 1% of venture capital funding. In Africa, only 6% of startups receive external funding, compared to 52% in North America.
- Lack of access to markets: Black businesses often face barriers to enter or expand into new markets due to regulations, tariffs, competition, or customer preferences. For instance, black-owned businesses in the United States account for only 2% of federal government contracts. In Europe, only 14% of small and medium-sized enterprises export outside the European Union.
- Lack of access to networks: Black businesses often lack mentors, role models, peers, or partners who can provide guidance, feedback, referrals, or collaboration opportunities. According to a survey by Endeavor Insight, only 8% of black entrepreneurs in South Africa have mentors, compared to 28% of white entrepreneurs. In the United Kingdom, only 13% of black business owners belong to business networks or associations.
How to Celebrate and Support Black Businesses
Black Business Month is an opportunity to celebrate and support black businesses around the world. Here are some ways you can do that:
- Buy from black businesses: You can find and patronize black-owned businesses near you or online using directories such as Official Black Wall Street, Black Nation, Buy Black, or AfroBiz. You can also share your experiences and reviews with others on social media or word-of-mouth.
- Invest in black businesses: You can provide financial support to black-owned businesses by investing in them directly or through platforms such as Backstage Capital, The Baobab Network, Black Founders Matter, or [Afrikanza]. You can also donate to organizations that support black entrepreneurship such as [Black Business Month Foundation], [Black Girl Ventures], or [African Entrepreneur Collective].
- Learn from black businesses: You can learn from the stories and insights of successful black entrepreneurs and business leaders by reading books such as [The Memo: What Women of Color Need to Know to Secure a Seat at the Table] by Minda Harts, [Shoe Dog: A Memoir by the Creator of Nike] by Phil Knight, [The Pursuit of Happyness] by Chris Gardner, or [Think Like a White Man: Conquering the World… While Black] by Nels Abbey. You can also watch documentaries such as [She Did That], [The Startup Kids], [The Black Godfather], or [Hidden Figures].
Black Business Month is a time to celebrate and support the achievements of black entrepreneurs and business owners around the world. By doing so, we can help create a more diverse, inclusive, and prosperous world for everyone.
