Closing the Black employer gap: Insights from the latest data on Black-owned businesses (2024)

FAQs

Closing the Black employer gap: Insights from the latest data on Black-owned businesses? ›

Percentage changes in Business Characteristics

Google and Meta have started to defund their DEI programs, and funding to Black founders continues to dip. Lawsuits have been filed targeting DEI programs, forcing companies to now hide their inclusion efforts while billionaires are arguing on X about whether DEI initiatives are discriminatory or not.

Black Owned Businesses create inclusivity within the market and offer the opportunity to create new jobs within their communities and improve the relationship within them. This all promotes the economy by closing the racial wealth gap and aims to increase the capital of the country.

The result of bridging the wealth gap means more jobs and increased income for everyone in our communities, which results in: An increase of family income – increasing the cash flow a family receives from entrepreneurship or the labor market.

Black Connect.org

It provides networking opportunities for Black business owners, as well as business-related educational programs, activities, events, and funding through pitch competitions.

Tractor Supply Co., the Tennessee-based animal feed and farm retailer, announced in June — LGBTQ+ Pride Month — that it was abandoning all diversity, equity, and inclusion initiatives following a barrage of pressure from far-right activists.

Three factors behind the pushback

DEI experts point to common sources that underlie resistance, including a feeling of loss of control or autonomy, a misunderstanding of the virtue of “colorblindness,” and a belief that social equalities have already been addressed.

Black people have long understood that entrepreneurship was the ultimate pathway to economic freedom. It was our escape from the discriminatory workplaces where we were overlooked for promotions, demoted or let go when profits got tight, and ignored and undervalued when earnings were up.

Black leaders serve as role models, mentors, and advocates for equitable practices, ultimately contributing to a more just and productive corporate culture.

Who is the most successful black business in the United States? ›

What Is the Biggest Black-Owned Business in America? World Wide Technology (WWT), with $17 billion in revenue in 2023, is the largest Black-owned business in the United States.

One of the most significant challenges that Black entrepreneurs face is the pervasive stereotypes, bias, and discrimination that exists in our society. These negative perceptions can hinder their ability to secure funding, attract customers, have access to markets, and build professional relationships.

As of 2022, Atlanta had 10,689 Black-owned businesses representing various industries, including food, hair, healthcare, and entertainment. Despite having the most Black-owned businesses in the U.S., there is a drastic disparity in resources available for Black entrepreneurs, according to LendingTree's study.

Offer Mentorship and Resources

If you have the expertise, technical skills, learned experiences, or a network that can benefit a business owner, Google Black-owned businesses in your area or reach out to organizations supporting them and share one or more of these value adds to their table.

From about 1900 to 1930, there was a golden age of Black-owned businesses in the US. Because Jim Crow laws forced African-Americans to form more insulated communities separate from whites, it led to a boom in entrepreneurship.

Black entrepreneurs have historically faced challenges accessing capital — not just from traditional banks, but also venture capital firms. Compared to their counterparts, they often lack generational wealth that can provide seed money for their businesses or family connections that can open certain doors.

Critics say DEI programs are discriminatory and attempt to solve racial discrimination by disadvantaging other groups, particularly White Americans. But supporters and industry experts insist the decades-old practice has been politicized and is widely misunderstood.

Discrimination claims are one of the greatest risks associated with DEI initiatives. While the intention behind implementing these kinds of programs is to promote equity and inclusivity, the wrong execution can inadvertently lead to claims of discrimination.

Diversity training backlash occurs when organizations fail to support diversity-associated thoughts, feelings, or behaviors in recruiting or retaining diverse personnel.