Supporting Black-Owned Businesses Must Be More Than A Moment
Op-Ed: Why Supporting Black-Owned Businesses Must Be More Than A Moment
Black-owned businesses are a steady pillar of the American economy. They represent success, innovation and resilience in the face of systemic barriers that have historically excluded Black people from economic opportunities. When we support Black-owned businesses, we are living values rooted in justice and economic empowerment.
Yet, today, these gains are again being challenged and reversed by leaders in corporate and public sectors — with businesses and government leaders at all levels retreating from commitments to purchase from and invest in Black-owned businesses.
Many corporations and entities that once pledged billions in spending with minority-owned suppliers are now dropping and disavowing their diversity, equity and inclusion (DEI) initiatives. These companies are fearful that their commitment to expanding opportunity to all communities will lead to a blitz of attacks from anti-DEI politicians and activists who are using DEI as a scapegoat to attack our economy, our schools, and key civil rights protections.
These are not separate, concurrent attacks. They are strategic and intentional assaults on pathways to opportunity that have allowed generations of Black people to succeed in our nation. The DEI attacks on Black-owned businesses aren’t just consequential for the businesses themselves; they reverberate across the communities they serve and the broader national economy. In order to meet this moment head-on, supporting Black-owned businesses cannot just be a trend or triggered by social outrage — it must be a sustained and intentional practice.
The history of Black entrepreneurship in America is a story of extraordinary growth and devastating contraction. During and post-Reconstruction, Black Americans built thousands of businesses in the beauty, real estate, and entertainment industries that were decimated due to Jim Crow laws, discriminatory practices and racially motivated attacks such as the Tulsa Race Massacre in 1921.
Even today, Black-owned businesses face increased barriers to success. Black Americans comprise 14.2% of the U.S. population but own just 2.3% of all employer firms. Despite being equipped and qualified to own and operate businesses, Black business owners face credit rejections three times more often than their white peers with similar credit profiles and only 13% of Black-owned firms receive all the financing they sought, compared to 40% of white-owned businesses.
Despite these gaps that reflect generations of systemic exclusion, Black business owners continued to push forward. The COVID-19 pandemic spurred a wave of entrepreneurship within the Black community, driven by necessity and innovation, with Black owned employer firms rising 21% from 2021-2022. Of the roughly 132,000 new employer businesses started in the U.S. between those years, over half were Black-owned.
Due to attacks on DEI, these businesses that experienced significant growth just a few years ago now stand to lose millions in stalled or withdrawn purchasing and investment. Despite false narratives from detractors, this regression isn’t rooted in legality; it’s rooted in fear of change. Despite mounting political pressure, it is still legal to invest in racial equity and sustainability. The real threat is the chilling effect: these sustained attacks dissuade investors from strategies that drive long-term economic growth, resilience, and innovation.
D’Angelos Svenkeson, co-founder and CEO of NEOO Partners, Inc. in Saint Paul, Minnesota, knows this journey all too well. His commercial real estate and development firm opened in 2018 and quickly expanded after securing local government and corporate contracts. The reality of diversity, equity, and inclusion commitments set in as the spotlight on commitments following George Floyd’s murder began to dim in 2021. His firm has survived thanks in part to investments dedicated to Black-owned firms. He says, “studies show Black businesses often do better than their peers, yet too many investors vanish, too soon, even though the data suggests at least seven years of investment are required for transformation to take shape. When you stick around, we hire neighbors, fix streets, and keep wealth close to home. This is steady work, not a stunt. A steady flame.”
To protect our nation’s economy and the small businesses that power it, investors must do their part. If we want Black-owned businesses to succeed, we can’t just write checks — we need to build the scaffolding of support: capital access, legal protections, public visibility, and sustainable infrastructure. This is a moral act and an economic imperative necessary to protect our future.
And investors are not without tools. Freedom Economy, a proud member of the American Pride Rises Network, equips investors with the resources they need to act boldly in the face of political and legal uncertainty. By providing education for legal clarity, investor resources, and a supportive peer network, we ensure that investors are not only informed but empowered to take bold action and invest in the future of our economy.
Black-owned businesses have always been at the forefront of innovation—now it’s time for our investments to reflect that same boldness. Investing in Black-owned businesses should no longer be a momentary trend; it must be a sustained movement that drives lasting change. This approach is a tangible way to confront historical systemic disparities and take action to live our values — not just speak them.
If we truly believe in justice, equity and economic empowerment, then our monetary choices must reflect those values.
Every dollar we invest shapes the world we live in and the future we create. It’s critical that we invest wisely.
Tawanna Black is Executive Director of the Freedom Economy Business Association and Founder of Living Truth Enterprises, Inc.
Dr. Andrea Abrams is Executive Director of the Defending American Values Coalition and a former professor and college administrator.
SEE ALSO:
9 Brands You Thought Were Black-Owned But REALLY Aren’t
Rising Unemployment Among African Americans Signals Economic Warning
Op-Ed: Why Supporting Black-Owned Businesses Must Be More Than A Moment was originally published on newsone.com
