Empowered: The Impact of African-American Entrepreneurship
Historically, Black entrepreneurship has been instrumental to the overall economic success and empowerment of African-American communities. We have played a significant role in shaping the U.S. business scene for many years. The economic empowerment for African Americans through Black entrepreneurship brings substantial economic growth and opportunity for our communities and the U.S. economy as a whole. There are many challenges that Black entrepreneurs face that are not concerns for others.
Access to Capital — Starting with passion and not having favorable terms in access capital to start and maintain the small businesses that have become the cornerstone of our communities. Banks are beginning to realize the opportunities and missed revenues from African-American businesses. When you’re drowning, you don’t need a promise to do better; we need a lifeboat.
Access to Resources — “Working on your business and not in your business.” This is a saying that we hear often but requires a lot of unpacking when speaking about minority businesses. You’re often told that you have to be the visionary, CEO, accountant, salesman, and janitor for your business while struggling to make ends meet. We need resources to help our businesses grow. Accounting, bookkeeping, marketing, and branding are essential resources on the wish list as we work to build the business we want to see in our tomorrow.
Social Capital — The term is often said but is a tremendous barrier for African-American businesses. Simply put, there is far too often not a seat at the table for them. We have to create our table because we don’t always have ready access to those who have significant influence. A person who has climbed the mountain to success knows they did not complete the journey alone and knows the path it took to get there. We have to bridge these gaps to ensure it is our responsibility, as we now sit at the table of influence, that we advocate for those who are in the trenches.
Black entrepreneurship is exemplified through the empowerment of community resources and information that encourages growth and upward mobility for neighborhoods in development. For neighborhoods in development, social capital is the glue that brings these neighborhoods and communities together through bonding, bridging, and linking. Defined as “the shared values and actions in a collective group,” social capital allows communities to collaborate to reach common goals and address problems that enable sustainable growth for all. These relationships form bonds that create the culture within the community and take action to achieve the common goal.
African-American communities have lacked social capital due to racial and economic disparity for many years. Racial or ethnic groups with a disadvantageous structural position in social networks would often suffer a reduction in social capital, contributing to higher poverty rates, dysfunctional culture, and lack of social mobility. Black entrepreneurship has helped African-American communities increase social capital by creating tools and resources for Black communities to achieve economic prosperity. We have seen this happen repeatedly and speak to it as if it is a new concept that needs to be corrected for the next generation.
Recent events in America have provided a sad reminder of the work that still needs to be done. Let us continue developing and strengthening partnerships and promoting racial equity within our community to create meaningful change. Black History Month offers an opportunity of what possibilities lie ahead and an opportunity to transform the social narrative within African-American communities. Remember that in the ground is the spirit of our ancestors, calling out to each of us to embrace the same Dream of equality for all.
Header Photo by Adeolu Eletu on Unsplash
