August marks Black Business Month, a time to recognize and celebrate the contributions and achievements of Black entrepreneurs and business owners. This annual observance originated in 2004 when John William Templeton, founder of the National Black Business Trade Association, declared the month as a way to drive the policy agenda impacting the 2.6 million Black-owned businesses in America. Nearly two decades later, Black Business Month continues to highlight the tremendous progress Black entrepreneurs have made, while also underscoring the ongoing challenges they face.

According to the U.S. Census Bureau's Annual Business Survey, the number of Black-owned employer businesses increased by 26% from 2012 to 2021. And research shows that supporting these businesses boosts the economy overall. A 2021 McKinsey study found that achieving racial equity in business could add $5 trillion to U.S. GDP by 2030.

So how can business leaders maximize Black Business Month 2023? Here are a few ideas:

• Encourage diversity in our supply chains. Source from Black-owned vendors. Ensure RFP lists include minority suppliers. Request diversity data from suppliers.
• Invest in Black entrepreneurs. Support Black crowdfunding campaigns. Join an angel investment group funding minority founders. Sponsor a Black startup competition.
• Measure progress - Define clear KPIs for how you want to improve year-over-year. Track the percentage of spending with Black-owned vendors. Assess employee satisfaction with DEI efforts.

The potential benefits of embracing Black Business Month make it worth prioritizing. According to a 2022 Groupon survey, 73% of consumers are more likely to buy from a Black-owned business if given the option. And employees increasingly expect employers to advance racial equity internally and externally.
​
Fostering an environment where Black businesses have equitable access to financial, educational, and community resources will benefit the economy as a whole. Black Business Month serves as a reminder of the vital role these entrepreneurs play and the potential they hold to reshape industries, spark innovation, and build generational wealth, if given the chance to fully and fairly compete. Equity in entrepreneurship benefits everyone.

Last week, a group of leading Asian American executives launched the Asian American Foundation, an organization aimed at increasing opportunities for Asian Americans and Pacific Islanders (AAPI) and putting a stop to anti-AAPI violence and discrimination. The foundation’s board pledged $125 million—the biggest philanthropic commitment ever made in support of AAPI groups and causes—and a range of partners (including McKinsey) together pledged another $125 million.
​
​A 2019 McKinsey analysis showed that Asian leaders made up just 3 percent of Fortune 500 CEOs—half the Asian American share of the US population. To advance workplace equity, organizations should start by tracking representation along the promotion pipeline, identifying where there are drop-offs, and asking why those drop-offs are occurring. Experiences can vary significantly across subgroups—which means collecting disaggregated data can yield important insights.
Source: McKinsey & Co, May 12, 2021  #stopasianhate

​In honor of #BlackHistoryMonth, let’s celebrate the innovations of America’s Black #entrepreneurs. This PBS series, first aired in 2019, highlights the achievements of inventors, business builders and executives of African descent. You can stream many episodes now at https://lnkd.in/gdFP2ac​