A Few Reasons Why You Should Support Diversity-Owned Businesses
May 5, 2023 12:55 pmThe inequities for diversity-owned businesses were blatantly apparent during the covid-19 global pandemic. It also exposed all sorts of inequities in our society, but the connections between physical and economic health may be one of the most profound.
As a result, it is important that as consumers we understand the essential need for the success of these businesses in our neighborhoods and communities.
Here are just a few of the many reasons why you should access the Diversity Directory and support diversity-owned businesses on the North Shore of Massachusetts.
Close the Racial Wealth Gap
With one of the designated groups included in the Diversity Directory being minority groups and People of Color (POC), it makes sense that patronizing their businesses will help close the racial wealth gap.
According to GreenAmerica online, the current “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 owned by minorities, women, veterans, and people of the LGBTQIA community have long been wealth builders for our society. By supporting more of these diversity-owned businesses, we can all create more opportunities for meaningful savings, property ownership, credit building, and generational wealth.
Job Creation
According to the 2020 Annual Business Survey (ABS), which covers the reference year 2019, approximately 18.7% (1.1 million) of U.S. employer businesses were minority-owned, veteran-owned businesses made up about 5.7% (331,151) of all businesses. About 20.9% (1.2 million) of businesses were owned by women.
These businesses employ workers, and more often than not, are more likely to hire diverse candidates than their counterparts. The numbers below from the U.S. Census Bureau are on a national scale, however, Massachusetts sees similar percentiles according to population.
- Veteran-owned businesses employ approximately 4 million people
- Hispanic-owned businesses employ 2.9 million people
- Black- or African-American-owned businesses employ 1.3 million people
- American Indian and Alaska Native-owned businesses employ approximately 215,049 employees
- Native Hawaiian and Other Pacific Islander-owned businesses employ about 51,000 people (U.S. Census Bureau)
Strengthening Communities
Small businesses are the core of our nation. There are 33.2 million small businesses in the U.S., composing 99.9 percent of all American businesses, according to the Small Business Administration. Even some of the big-name chains you see could be locally operated and qualify as small businesses.
These businesses have the ability to strengthen local communities and their economies by encouraging and attracting other diversity-owned businesses and allowing for revenue raised in the area to support and recirculate in those neighborhoods.
Next time you plan to buy local, patronize a local business, or utilize the services of neighborhood shops, consider the impact that you could have if you choose a diversity-owned business. Visit our North Shore Diversity Directory and find out more about businesses in your area.
Resources
https://www.greenamerica.org/blog/6-reasons-support-black-owned-businesses
https://www.hi5.team/blog/support-black-owned-businesses
https://www.zenbusiness.com/blog/minority-small-business-owners/
Categorised in: diversity, diversity directory