Why white consumers should buy from Black-owned firms

According to my college vintage (1972-1976) American Heritage Dictionary, synonyms for black include: soiled, evil, gloomy, sinister and even grotesque. In contrast, synonyms for white include pure, unsullied, generous and decent. Is it any wonder that Black businesses have a branding problem?

These synonyms are cultural and Eurocentric artifacts. In many African languages the use of these words as adjectives is reversed, with white indicating sickness, weakness and evil while black means beauty and power. But English is our language, not Hausa, and while the amount of melanin in our body does not determine intelligence, character or humanness, it unfortunately has determined how we treat each other.

I bring this up because it has become increasingly clear to me that there is a national interest in promoting Black business and to go beyond the typical entreaties to middle and uppermiddle-class Blacks to support Black businesses. It is necessary now for everyone, particularly white consumers, to overcome the historical and etymological barriers that constrain Blackowned businesses. If Black businesses had the economic support of white consumers, we would not be in the mess we are in.

In my 15 years as CEO of the Greater New England Minority Supplier Development Council, I worked hard to increase opportunities for certified minority-owned companies to become suppliers to large corporations. We had our successes and our challenges, but over my tenure, we helped increase spending by large corporations with certified minority firms by hundreds of millions of dollars in Connecticut and the region.

Largely for this work, in 2017 I was awarded the Ronald H. Brown Leadership Award by the U.S. Department of Commerce’s Minority Business Development Agency. Ronald H. Brown was the first African American to lead the Department of Commerce. Brown tragically died in an airplane crash in 1996 while conducting official business.

When I was invited by the incoming Trump White House to do a photo opportunity with the new president. I declined the invitation. The new administration had just released its budget which eliminated the Minority Business Development Agency. The irony of being presented this particular award by this president was too much given his intention to eliminate the only agency in the federal government designed to support Black businesses. In retrospect, declining this invitation was one of my better decisions.

Recent data on who received Paycheck Protection Program loans reflects how much work we still need to do to support and build Black businesses. The PPP did not require race or ethnic data on any of the borrowers for loans under $150,000. We know however, that of the over 16,000 loans made to Connecticut businesses, only 23 loans over $150,000 were made to Blackowned enterprises. We also know from data collected in 2012 that only 109,000 of the over 2.7 million Black-owned firms had paid employees. These numbers indicate that there is a problem facing large numbers of Black-owned enterprises that no amount of

“happy talk” will fix.

Why should white consumers care about Black-owned businesses?

It is understandable why companies do not generally support their competition by telling their consumers to shop elsewhere. But this is not the issue. The reason why white consumers should support Black-owned businesses is that their support creates jobs, opportunities and wealth in Black communities. With jobs and wealth come reduced demands on public dollars. With jobs and wealth come increased economic stability. With jobs and wealth come reductions in crime, increases in home ownership, more fiscally stable cities and towns, better schools, and a more peaceful and just society.

The last reliable set of data measuring gross receipts for Black-owned firms was done in 2002! Adjusting the gross receipts of Black firms to 2020 prices would total about $129 billion in sales. American consumption in February 2020, prepandemic was $13.9 trillion. There are over 48 million Black Americans, 14 percent of the U.S. population. If Black firms had captured 14 percent of total American consumption spending, Black firms would have had $1.9 trillion in gross receipts. The gap between what is and what could be is over $1.8 trillion. This gap will only be closed if white consumers make a concerted effort to support Black business by spending a small fraction of their dollars with Black-owned firms.

While growing Black businesses is not going to immediately cure all social ills, we know from examples what it can do. One of the largest most successful certified minority businesses during my time at the GNEMSDC was Specialized Packaging Group, owned and founded by Carlton Highsmith. My position at Quinnipiac University was funded by Mr. Highsmith and People’s United Bank. Mr. Highsmith was the primary investor in the Connecticut Center for Arts and Technology in New Haven. CONNCAT is now one of the most effective nonprofits in the country. Minority business success benefits everyone.

During this time of grappling with the challenges of racial justice, I have heard from many of my white friends who have asked me: “What can they do?” What they can do is support Black-owned businesses. Black-owned businesses are everywhere and in every industry. You just have to look for them.

Now, I think I will give Thelma’s Restaurant a call and order my Sunday dinner of sweet potatoes, collard greens and the best mac and cheese in the state.

While growing Black businesses is not going to immediately cure all social ills, we know from examples what it can do.