Welton Street Cafe
Audio By Carbonatix
Each February, Black History Month invites us to celebrate the contributions of Black Americans to our nation’s story. But this month should go beyond honoring the past; it should also involve investing in the future – in part by supporting the extraordinary Black-owned businesses in our communities.
Despite facing historic disadvantages, Black-owned businesses are now among the fastest-growing segments of entrepreneurship in the country. They have grown by 34 percent since 2012 and contribute more than $200 billion annually to the nation’s economy. Black female-owned businesses in particular have accelerated this trend, growing by over 70 percent since 2017.
These gains reflect the creativity, innovation, and resilience of Black entrepreneurs across the country. At the same time, Black-owned businesses still represent a disproportionately small share of U.S. businesses (3.3 percent) compared to Black Americans’ share of the country’s population (14.4 percent). Likewise, many Black entrepreneurs continue to face barriers to start and expand their businesses.
Consider the challenge in accessing affordable capital. A 2024 Goldman Goldman Sachs study found that 86 percent of Black small business owners expressed concern about obtaining capital – significantly higher than the national average. Likewise, Black entrepreneurs were about three times more likely to avoid applying for credit out of fear of being denied. Too often, Black-owned businesses face an uphill climb in funding their entrepreneurial dreams.
But despite these difficulties, Black entrepreneurs are positioned to play a large role in serving underserved communities. Their businesses often operate in neighborhoods long overlooked by big corporations. They provide essential goods and services while creating local jobs. When these businesses thrive, the local economy reaps the benefits. As a Black-owned, woman-owned and veteran-owned motivational and inclusive activewear line in Denver, I am proud to contribute to my community and support all people in their fitness journeys.
Support for the 3.5 million Black-owned businesses in our country could not come at a better time. As is the case for many small business owners across America, survival is not guaranteed in today’s economy. Too many operate with tight margins, and factors like inflation, labor shortages and tariffs create uncertainty. This instability has forced many to take tough decisions, such as cutting down operations, raising retail prices and restructuring supply chains.
As an online retailer, I also navigate unique challenges in the digital marketplace. E-commerce enables me to effectively market my products while reaching consumers beyond my neighborhood. In fact, more than half of online shoppers now report shopping internationally. But that global reach also means I’m not immune to shifts in international trade. I rely heavily on imported goods, and new tariffs make it especially hard for me to stay afloat financially.
While policymakers need to prioritize policies that alleviate our concerns, consumers can also provide us reassurance by shopping more at Colorado businesses like mine. Choosing to support a Black-owned business – whether online or in your community – is a tangible way to celebrate Black History Month not just with words, but with action. It sustains job growth, strengthens local economies, and honors our past by building a better future for Black entrepreneurs.
