Equity in Entrepreneurship Benefits Everyone

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.
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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.