During the early months of the 2020 coronavirus disease (COVID-19) pandemic, forced closures hit many businesses, especially Black-owned businesses.
Malcolm Corey and Newdie Felton, co-founders of Wilmington-based marketing firm Influencer's Lab, realized that unlike many of their clients, they could pivot. The two leveraged their online presence, e-commerce site, and website to keep their business afloat, and decided they needed to help other businesses do the same.
The pair had planned to start a Facebook group for Black entrepreneurs before the pandemic, but as Black-owned businesses are struggling to adapt and need support, Black-owned businesses are finding it easier to network with each other. We decided to use this group as a place where we could build relationships, exchange information, and explore opportunities. . Their Facebook group Spending Black Matters quickly became popular.
“In just a month, we had about 10,000 people join the Facebook group,” Felton said. Currently, the group has 33,000 members.
Corey and Felton attribute the group's rapid growth in membership to a common desire for survival among black entrepreneurs. Many Black-owned establishments rely heavily on support from Black consumers and networking within their communities. Support from Black consumers is critical to success, as Black consumers often lack support from other demographics.
Local Black businesses rely on Black consumers
This is the key reason behind the creation of the Spending Black Matters Marketplace.
Spending Black Matters Marketplace is an annual, free event open to the public. We feature local Black-owned small businesses that offer a wide range of professional services and products, including auto accessories, fashion, beauty, food and wellness supplies. Participating vendors will also be invited to participate in discussions covering topics such as fundraising, financial management, and effective marketing strategies for new business owners. This year's expo was held at Eastside Charter School in Wilmington.
Katrina Watson, founder of cleaning company Whole New World, said participating in community events such as Spending Black Matters Marketplace is a valuable experience that allows her to understand first-hand the needs, wants, and desires of a community. Ta.
Watson said her three-year-old business is built on connections she and her fiancé, Kennedy Scott, have made at events such as the Spending Black Matters Marketplace.
“We African Americans are not afforded the opportunities that most people have,” Scott said. “That’s why we need to come to events like this where we can all come together, share ideas and help each other succeed.”
Black-owned businesses face a tough market
Speaking with members of Spending Black Matters, Corey and Felton learned that while Black consumers spend money at businesses regardless of ownership, Black-owned small businesses are not widely patronized by the public. Ta.
“As African Americans, we shop with people of all nationalities. We shop at (Asian-owned stores). We shop at (European-owned stores). We shop at (Hispanic-owned stores). (shop) at the store. As soon as we get the money, it goes out of our community,” Felton said.
As the nonprofit Prosperity Now has reported, since the shutdown lifted, Black-owned businesses have faced increased competition, but also a lack of support from the broader community and businesses that primarily disadvantage people of color. continues to be hindered by the environment.
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Research shows that institutional factors also contribute to the lack of support for Black business owners. Long before the COVID-19 pandemic, many Black-owned businesses were struggling to survive and grow due to historical barriers to accessing credit, liquidity, and financing. Without these resources, many companies will not be able to build the wealth and economic standing they need to succeed in business. The issue has gained widespread attention amid the national response to the killing of George Floyd, with corporations pledging billions of dollars in aid to minority-owned businesses. Despite these efforts, Felton and Corey said many of the businesses they face still have difficulty obtaining financing.
After the shutdown ended, a Philadelphia Fed study found that the vast majority of small businesses owned by people of color and women saw their revenues decline, and lack of access to credit was a major barrier to growth and sustainability. It has become. region. The New York Fed reports that this problem is especially pronounced among black-owned businesses.
Coley and Felton believe that for Black-owned small businesses to thrive, society must not simply have conversations and initiate initiatives that align the intended goals of diversity, equity, and inclusion with their culture. He emphasized the need to incorporate it into the They added that achieving this social change is consequential, but until it becomes a reality, success must first begin within the communities themselves.
“We remain true to our North Star of providing access to Black businesses and building an ecosystem…Our businesses are committed to producing, sustaining, and hiring talent that: , we need to be in a position to be able to expand,” Corey said.
you can cOntact reporter Anitra Johnson ajohnson@delawareonline.com.
