August is National Black Business Month, a time to recognize and support the significant contributions of Black-owned businesses and Black entrepreneurs in the United States. There are many ways to celebrate Black-owned businesses and the dedicated owners who make up this thriving and expanding community of entrepreneurs.  

Consider the substantial value and positive influence they bring to our local communities and our country’s economic growth and stability.  

A growing impact on our economy and workforce  

The International Trade Administration (ITA), part of the U.S. Department of Commerce, shared this time last year that there were 3.6 million Black-owned businesses in the United States, generating $217 billion in annual revenue and supporting more than 3.56 million U.S. jobs. These businesses are essential to local economies and our country’s overall economic development.  

“The financial impact of Black- or African American-owned businesses in the United States is multifaceted and dynamic and translates into real economic impact and creates jobs for workers of all backgrounds.” — U.S. International Trade Administration  

Black women are a significant force in the U.S. entrepreneurial wave  

According to 2023 data from the Pew Research Center, while men dominate the ownership of U.S. Black-owned firms, 39% of Black-owned businesses had women majority owners and another 8% had equal male-female ownership. In fact, female Black entrepreneurship is gaining ground fast. GoDaddy’s late 2023 Venture Forward research initiative found that Black women are the fastest-growing group of U.S. entrepreneurs.  

CNBC recently shared stories of three Black female entrepreneurs who are finding success in pursuing their passions and what motivated them to strike out on their own.   

“To me, the rise of Black women entrepreneurs means we’re starting to believe in ourselves more, that we’re finally recognizing how limitless we are,” says Joy Ofodu, who quit her job at Instagram to become a full-time content creator and voice actor in 2022. “Ultimately, when it comes to being a Black woman entrepreneur, I don’t want what I am doing to be so rare; it doesn’t energize me to be the first or only Black woman to do something. I want to fling open the doors for many, many others to join me.”   

Struggles still exist  

Despite the positives, there are very real struggles that exist for today’s Black businesses and aspiring business owners. Even though Black-owned businesses have grown significantly in the United States in recent years, they comprise a small share of overall U.S. firms and revenue, according to an analysis of federal data by Pew Research.  

One primary example is that it’s harder for Black individuals to receive financial backing for their businesses than people in other demographic groups. Only 1% of Black business owners secure business loans in their first year, leading 44% to rely on personal savings to start their ventures. Cisco data affirms this challenge, pointing out that Black people get turned down by lenders at a much higher rate than Caucasians, despite the same credit scores and same factors being considered.    

Even when financing is approved, Black businesses tend to receive higher interest rates. This occurs due to a variety of factors, including generational wealth gaps, credit scores, bias in lending, and more. Ultimately, these dynamics create the unfortunate cycle of Black business owners receiving less financial backing than their counterparts.  

Join me in showing your support   

As a senior recruiting partner with Goodwin Recruiting and DEI project coordinator, I’m proud to work with many Black-owned businesses and I strive to expand my portfolio every day. There’s nothing that makes me happier than helping our clients succeed and providing our candidates with the opportunity to work for these amazing and diverse companies.  

In honor of National Black Business Month, I encourage you to support Black-owned businesses. Here are some simple steps you can take:   

• Buy from local Black-owned businesses in your community.  

• Consider supporting these amazing 50 Black-owned businesses. 

• In your social media posts and online content, use hashtags like these to help promote Black-owned businesses: #BlackOwnedBusiness, #BuyBlack, #WomenInBusiness #SmallBusiness #SupportSmallBusiness 

• If you’re in Washington, D.C., you can tag your favorite local Black-owned business with: @smallbizdc  

• Partner with Black-owned businesses whenever possible. 

• Continually work to educate yourself and others and do all you can to help create an environment that is fair and equitable for all.  

By supporting Black-owned businesses, we can all contribute to a more equitable economy and celebrate the entrepreneurial spirit that drives innovation and growth in our country and communities.  

Let’s show appreciation for these vital enterprises and accept the challenge to #BuyBlack throughout August and beyond!