The Importance of Crowdfunding for Black Businesses this Black Business Month
It’s no secret that crowdfunding is the future of investment for minorities. Even though global venture capital funding dropped 20 percent since the beginning of the pandemic, according to VentureBeat, people of color have historically been denied access to this form of capital anyway. This is why there is a need to get creative and tap into other alternatives for raising money to get black businesses off the ground: crowdfunding.
Crowdfunding for black businesses, in particular, is important because they have been denied access to resources, loans, and funds more than other businesses. According to the Kauffman Foundation, Black-owned businesses start with nearly three times less than white-owned businesses. The numbers are even more uneven for black women, who hold only .06% of the total tech venture capital raised.
On top of being shut out from venture capital investments, women of color have noticed a deeper hesitation in crowdfunding for Black businesses since people feel they do not have a strong enough network. Black women themselves also do not want to show vulnerability in asking for support, and for this reason struggle in getting the necessary support from crowdfunding. However, in turn, it’s been shown that Black communities are strong supporters of crowdfunding for Black businesses and have helped entrepreneurs raise enough money to start their own businesses.
The abundantly clear inequality in raising capital for white versus Black businesses is even more of a reason to begin crowdfunding for Black businesses. This is why the new online crowdfunding platform, Black Money Builder, strives to do exactly that. Launched on Juneteenth, by entrepreneur and CEO, Justin Shaw, Black Money Builder is the future of crowdfunding for Black businesses.
This funding resource is one of the first of its kind to support Black lives, economy, and endeavors. The platform is similar to GoFundMe- anyone can sign up and start a campaign for free. The campaigns can then be shared with friends, family, and even generous supporters across the globe. There are no rules on what type of campaign you can create, from arts and technology to medical emergencies, the crowdfunding website Black Money Builder is made to support all Black lives and joy.
What makes Black Money Builder different from other crowdfunding platforms is that the CEO has pledged to invest 8.46% of the company’s total revenue back into Black communities. The specific number comes from the number of minutes down to the second, that the Minnesota police officer kneeled on George Floyd, taking his life and changing the course of history. This is just one example of how Shaw shows immense support towards building Black wealth. The annual donations from Black Money Builder will support Black education, Black businesses, and Black lives across the United States. Shaw’s ultimate goal is to fuel the Black economy and most recently help families in need rebound from Covid-19.
With Black business month just around the corner, starting a crowdfunding campaign for Black businesses is just one of the many ways you can show your support for Black lives.
What is Black Business Month?
August is Black business month in America, and a time dedicated to showing support to Black-owned businesses across the country. Due to his own struggles in 1969, upcoming entrepreneur Frederick E. Jordan could not get the necessary funding for his own business endeavor. He faced many challenges and soon realized most young Black entrepreneurs face these same setbacks today.
Now a successful business owner, Jordan fought to highlight the racial inequality for Black entrepreneurs in 2004. Along with eAccess Corp, Jordan pitched Black Business Month as a yearly event to support and recognize Black businesses in the United States.
Today, Black-owned businesses account for 9.4% of all firms, according to the most recent United States Census. This number is below 13.1% of the African American U.S. adult population, which is considerably low. However, the month of August still stands strong in showing support and recognition for Black Businesses.
Although odds are still stacked against young African Americans, Black businesses never fail in showing their resilience by thriving against all odds. Over the past year, with the global pandemic and protests for the Black Lives Matter movement, this issue has come to light more so than ever. Supporting Black businesses has taken great urgency, and communities and other businesses are looking for ways that they can show their support to promote diversity.
How Your Small Business Can Support Black Business Month
The healthy competition between small businesses during Black Business Month is a way to motivate and promote minority-owned businesses in America. Every day is an opportunity to give back, especially in August. You can do so in many ways:
Shop Local: in the month of August, make an effort to order office supplies or staff lunches from Black-owned businesses. Instead of ordering from large corporations, you can find what you need from a black-owned restaurant near you or Black vendors who need the extra support.
Find Black Businesses: the internet is your best friend in finding Black-owned businesses near you. Many companies already do the work for you and highlight whether a business is Black-owned with lists on their apps.
Start a Crowdfunding Campaign: crowdfunding for black businesses is one way that you can help businesses get their feet off the ground or fund an already established black-owned business with additional support. Black Money Builder is a black-owned crowdfunding platform where you can create crowdfunding campaigns to raise money for black businesses.
Use Hashtags: this is an easy way to find Black-owned businesses across social media, by simply typing in hashtags such as #NationalBlackBusinessMonth, #ShopBlackOwned, #BlackMakers, #BlackOwned, and #SupportBlackBusiness