Big corporations have a long history of squeezing small firms and putting a massive burden on low-income communities, for example, Black communities and black-owned online shops. For instance, the presence of Amazon in Seattle has led to rising housing costs and forced out mom-and-pop stores.
However, diversity boosts economic vitality, communities, efficiency, and resilience. In a green economy, sustainable holistic growth cannot be achieved without the participation of all.
Minimize the Wealth Gap between Different Races
It is possible to trace the origins of the current racial inequality to Jim Crow-era policies like redlining and discrimination in the workplace that kept African Americans from higher-paying jobs and homeownership opportunities which ultimately hindered wealth creation.
In 1935, the Social Security Act did not offer coverage to domestic or agricultural workers, a majority of who included African Americans, and its demands for residence and payroll details also did not cover the vast amount that comprised African Americans working menial, “off the books” jobs and moving North during the time.
The median wealth of white families is approximately 12 times the amount of Black families, with an average of $140,000. One in four households of blacks have no net worth or have a negative value compared to just one of ten white families with wealth. The most alarming part is that by 2053 the median wealth of Black families is predicted to be zero.
Small and entrepreneurial businesses have long been wealth-builders for our country. By supporting more black-owned businesses, Green Americans can create greater opportunities for saving in property ownership, credit development, and generational wealth.
Strengthening the Local Economies
Small businesses are successful, and also their communities. However, banks can hinder that growth through discrimination favoring African Americans and other entrepreneurs of color looking for small business loans. A 2017 study conducted by the National Community Reinvestment Coalition discovered bank lenders were two times more likely to grant business loans to white entrepreneurs than Black ones and three times more likely to meet with applicants of whites than more competent Black ones.
If the consumer sector accounts for 70 percent of the US economy, just imagine what the possibility of directing some money to Black-owned companies across the nation could accomplish.
The majority of small purchase transactions are localized compared to just 14 percent of what is circulated by chains.
The support of Black-owned businesses helps families, employees, and business owners of all kinds and attracts investors from the community who offer financial services and loans, and encourages financial literacy – all aspects that help build economic stability.
Celebrating Black Culture
Many Black entrepreneurs set up companies inspired by the wealth of African American culture itself Black-owned online shops selling cosmetics products and children’s toys are only some examples.
Some Black-owned businesses were designed to provide access to solutions that meet the community’s needs.
Sol Sips, an affordable vegan company created to provide more organic and healthy beverages to Brooklyn’s Bushwick neighborhood, is an excellent illustration.
These businesses lift communities and instil an appreciation for those who live there. If you choose to support businesses owned by Blacks, they offer products worth the distinctive character they provide.
