BUSINESS GOES HERE!
We are putting together a directory of Local Black-Owned Businesses (B.O.B.) that are located in Alabama. The B.O.B. Directory is intended to help The People locate and support black-owned businesses. This page will soon be filled with local and legit black businesses! If you are a Black business owner in Alabama, click here to fill out out the info necessary to be a part of The Carbon Academy's Black-Owned Business Directory.
How long does money stay in various communities?
It has often been said that a dollar circulates:
30 days in the Asian community
20 days in the Jewish community
17 days in the White community
6 hours in the Black community
4 Reasons to Support Black-Owned Businesses
1. Helps To Close The Racial Wealth Gap
We can trace the origins of today’s racial wealth gap to Jim Crow-era practices like redlining and job discrimination which segregated African Americans from higher paying jobs and homeowner ownership opportunities that ultimately prevented wealth building. The 1935 Social Security Act did not afford coverage to domestic and agricultural workers, many of whom were African American, and its requirements for residency and payroll information also excluded the large number of African Americans working menial, “off the books” jobs and migrating North at the time.
Today, the median wealth for white families is about 12 times that for Black families averaging around $140,000, and one in four black households have zero or negative net worth compared to less than one in ten white families without wealth. Even more concerning is that by 2053, the median wealth for Black families is projected to fall to zero.
Small businesses and entrepreneurs have been longtime wealth builders in our society. By supporting more Black-owned businesses, Green Americans can create more opportunities for meaningful savings, property ownership, credit building and generational wealth.
2. Strengthens Local Economies
When small businesses flourish, so do their communities. But banks often hinder that prosperity by discriminating against African American and other entrepreneurs of color seeking small business loans. A 2017 study by the National Community Reinvestment Coalition actually found that banks were twice as likely to provide business loans to white applicants than Black ones and three times as likely to have follow-up meetings with white applicants than more qualified Black ones.
If consumer spending accounts for 70 percent of the entire US economy, imagine what directing some of that spending power to Black-owned businesses across the country can do. 48 percent of small business purchases are recirculated locally compared to only 14 percent of what’s circulated by chain stores. Supporting Black-owned businesses in turn supports families, employees, and other business owners, as well as attracts community investors who provide banking services, loans, and promote financial literacy--all things that build economic strength.
3. Fosters Job Creation
Many African American business owners fund their own businesses due to the lack of capital mentioned earlier. This means that most Black-owned businesses are sole proprietorships that don’t make enough money to pay employees. 2012 US census data showed that Black-owned businesses created 1 million jobs compared to white-owned businesses which created almost 56 million.
In 2018, the unemployment rate for African Americans fell to 6.6 percent, which was almost double that for white Americans and higher for other minority groups. Since Black-owned small businesses are likely to hire from the local community, supporting them can foster the job opportunities people need to achieve financial stability.
4. Makes Real, Tangible Change
Black women and women of color are frontline leaders and organizers in the social change movements that have paved the way for a more equitable and just democracy. As seen during this most recent election, women of color mobilized their communities as they have done throughout history. They are the primary constituency most impacted by inequity and live at the intersection of multiple systems of oppression, including white supremacy, patriarchy, colonization, and unbridled capitalism. And yet their work is still under-resourced.
If philanthropists and foundations want to bring about long-lasting and sustainable change and address racial inequity. . . fund Black organizations.
As we move into a space of transforming what has been into what will be, consider doing more than just issuing a statement or having a 'talk on race'. If you want to support Black-led nonprofits, focus on capacity building and infrastructure. Do the work to find the hidden gems doing good and in their communities and fund that work.
Mary Meade and Sytonia Reid
Columnist and Black Non-Profit Director, Tiffany Turner-Allen, Nonprofit Prince George’s County
In his book PowerNomics, Dr. Anderson explains 12 economic action steps and gives a Powernomics Empowerment chart to help Black Americans practice group economics. Here they are in brief.
Economic Action Step #1: Create an alternative economy within Black communities.
Economic Action Step #2: Dominate business ownership and management where Black people are the majority.
Economic Action Step #3: Focus on 'Wealth Building' and restoring the economic intent of the original Civil Rights laws.
Economic Action Step #4: Counter the 'Brain Drain' with businesses that agressively attract Black talent from schools, the government, and corporate America.
Economic Action Step #5: Establish solid 'Root' businesses within Black communities.
Economic Action Step #6: Construct vertical businesses and industries that control all processes from raw resources in markets within and outside of Black communities.
Economic Action Step #7: Stop the 'Money Drain' out of Black communties. In other words 'Buy Black' but sell to anyone.
Economic Action Step #8: Attract semi-finished products into Black communities for value-added manufacturing, processing, and assembling.
Economic Action Step #9: Promote the competitive advantages of Black communities.
Economic Action Step #10: Establish 'Safe Business Zones' based upon a code of conduct in Black business communities.
Economic Action Step #11: Amass 'Vision' capital and wealth through community-based financial efforts.
Economic Action Step #12: Establish international economic alliances and marketing agreements between Black America, Black Africa and Caribbean nations.