Image of black man represented by a toy figure standing in front of a pile of coins.

Funding gap for Black-owned businesses causes long-term inequity

The less we invest in Black owned businesses, the harder it is for them to recoup when setbacks occur.

From school segregation to redlining, people of color in our country have setbacks not experienced by their white counterparts. Consider this from Forbes:

Numbers released by the U.S. Commerce Department’s Minority Business Development Agency show that minority-owned businesses are less likely than white-owned businesses to secure funding…”

The discrepancy in business funding has become exacerbated in the past year during the pandemic, when money through the Paycheck Protection Program also favored white-owned businesses. 

As with most systemic setbacks, the deficit builds and it becomes harder and harder to catch up. So when we were hit with a pandemic, Black-owned businesses took an unfair share of the hit. 

CBS News: A Main Street Alliance/Color of Change poll released in October found that only 40% of Black business owners expected to remain open over the ensuing six months…”

At Consciously, we believe information empowers. Shopping Black-owned businesses can help level the playing field and we want to be sure you have the tools to ensure Black-owned businesses thrive and keep our communities strong.