Since 1963, the president of the United States has issued a proclamation acknowledging National Small Business Week and the contributions small businesses make to the American economy and fabric.
Sixty years later, President Biden continued the legacy of uplifting the importance of small businesses when he spoke from the White House Press briefing room on May 1.
“Small businesses are the engine of our economy, the glue — they really are — the glue, the heart and soul of communities,” Biden said. “And most citizens don’t know it — is that you small-business owners, you account for 40% — let me say it again — 40% of the gross domestic product of America. Small businesses. Not mega-corporations. Small businesses.”
In May 2022 Forbes reported small businesses “drive the American economy.” Pulling from U.S. Small Business Association (SBA) statistics, the article reports that small businesses of 500 employees or fewer make up 99.9% of all American businesses. Further a 2019 SBA study reported that small businesses made up for 44% of U.S. economic activity.
Thus, if small businesses are so important, supporting small Black-owned businesses is key.
According to recent Census statistics, Black-owned businesses account for 9.75% of U.S. small businesses. Per 2018 Census data, the SBA reports Black business owners owned 3,239,531 businesses, and Black-owned businesses employed 1,188,819 employees.
Business DIT reports that minority-owned businesses account for one-fifth of U.S. employer businesses, a statistic that diversity business ownership advocates are working to combat.
According to research, supporting Black businesses helps create jobs and improves overall local economies and communities. Thus, it’s important to support Black-owned businesses in order to improve minority-owned employer statistics and can further increase the number of Black entrepreneurs.
Moreover, supporting Black-owned businesses is said to help improve racial wealth disparities.
The Federal Reserve Bank of Minneapolis reported white Americans account for 60% of the population, but make up 84% of U.S. wealth, while Black Americans make up 13% of U.S. citizens and only 4% of wealth.
Supporting Black businesses is important in helping to close the wealth gap and bring equity to African American communities nationwide.
So this Small Business Week, as you work to support your local small business, be intentional about spending money with Black-owned businesses. It’s important to our communities.