Did you know August is National Black Business Month? As we stand with the Black Lives Matter movement, our team has been communicating everyday to find ways to support the community in the long run and fight against the ongoing systemic racism and injustices against George Floyd, Breonna Taylor, Elijah McClain, Ahmaud Arbery, and many countless others.
According to Green Business Network, one of the significance of supporting black-owned businesses is to close the racial wealth gap, which has been affected by Jim Crow-era practices such as refusing to offer higher paying jobs and homeownership to Black Americans. Many surveys and studies prove these unfair practices are still continuous; according to Global Strategy Group’s survey, just 12% of Black and Latino small businesses receive Paycheck Protection Program (PPP) loans while others are refused and forced to close their businesses. Furthermore, Amari D. Pollard’s article addresses the global pandemic and recession have even aggravated the Black community’s struggle with entrepreneurship.
We strongly believe that increasing awareness of supporting black-owned businesses in your community is a crucial step to strive for equal economic opportunities and representations. Here are some ways that can help make positive change:
1. Shop/invest at small black-owned businesses
Whether it is a local or online business, supporting a small business during this time of global uncertainty is a crucial thing to do for them. With an overwhelming number of businesses around you, choose the ones that resonate with you and your vision.
Here are some black-owned businesses in NYC we’re obsessing over lately:
- Urban dessert Labs – a new plant-based ice cream from Boston, black women owned business that it’s creating a buzz in NYC.
- Casa del Toro – modern Mexican dishes with a twist.
- Tings Jamaican Jerk Chicken – Jamaican food located in Chelsea Market.
2. Utilize Black Owned Business Referral/Affiliate Programs
Word of mouth marketing can be so impactful for a business, helping a small business raise their trust and brand awareness. Nielsen found that people are 4 times more likely to buy when referred by their friends, and referred customers have at least 16% higher chances of becoming lifetime customers, according to the Wharton School of Business— that’s a quite large possibility. Therefore, lots of businesses see increases in their revenues from referral programs.
While you can buy from Black owned businesses, you can help out the businesses through online referral/affiliate programs. Black-owned business directory platforms such as Support Black Owned (SBO), Black Trade Lines, and We Buy Black offer affiliate programs that allow people to get paid for referring Black businesses to add their information on the platform.
Affiliate programs are an effective method to gain more exposure and reach new audiences, having similar concepts to referral programs, but they are slightly different. Cratejoy did an awesome job in explaining the difference between referral programs and affiliate programs.
3. Help small black-owned businesses using crowdfunding
The 2019 survey indicated that only 1% of Black business owners utilize crowdfunding – one of the fastest ways to send cash directly into the owners’ pockets. GoFundMe is a great crowdfunding platform to start with for supporting challenged businesses. Seeking for donations will increase business’ interaction with donors and higher chances of gaining new loyal customers too. If you know small businesses that need financial support, you can initiate to fundraise.
4. Use the power of social media
According to Simon Kemp, the new Digital 2020 July Global Statshot report showed that more and more people are using social media to research brands: using social media is a new search behavior to explore and learn more about brands and their products. In addition, Annex Cloud shared a study that found 81% of U.S. online consumers make purchase decisions from their friends’ social media posts. Social media has become an influential platform to discover new brands and spread news to all over the world. Use your account to explore black-owned businesses and share them with your folks.
5. Spread the word to your friends and family
According to this Forbes article, Nielsen’s study found that 92% of consumers trust recommendations from their close friends. Sharing your experience with a brand’s service or product will highly impact your loved one’s impressions and decisions to make purchases. The success of business comes from more exposure. Phone call, text, email, pigeon-carriers or anything– communicate with your friends and family to spread the word!
In conclusion, this month should be about spreading awareness and giving some love to small black-owned businesses nearby or online to help support them and the #blacklivesmatter movement. If you know a business who will benefit from our cashback app, contact us and we’ll reach out to them!