In 2020, 58% of Black-owned businesses found themselves at risk of financial distress compared to 27% of white-owned businesses pre-pandemic. Unfortunately, the Covid outbreak has only increased that gap. Within the first three months (February to April 2020) 41% of Black-owned businesses did end up going out of business. Moreover, 98% of black women business owners agreed that their business was directly affected by the pandemic and 82% of them reported a huge loss in revenue.
What is the one thing we can do to actively help black-owned businesses thrive? Be more conscious about where and when we are spending our money. Whether you are looking to order a quick takeout meal from a local black-owned restaurant like New York City’s Teranga Harlem, grab some books from a black-owned bookstore like the Lit Bar (available on bookshop.org), or start looking online for pages that will help you find the best black-owned businesses like SupportBlackOwned.com, the possibilities are seemingly endless. We’ve previously talked about the 5 Black Fashion Brands We’re Currently Obsessed With. But, how about black-owned beauty and skincare businesses?
Where to Shop for Black-Owned Beauty, Hair and Skincare Brands?
In 2021 African Americans spend 19% more than all other ethnicities on bath and body needs, however, it’s almost impossible to capitalize and make a profit out of it. The hard reality is that black female business owners have always been trying to leave their mark in the entrepreneur world, but, unfortunately, they aren’t receiving the same opportunities as the other power players in the industry. Black female business owners receive less than 1% of venture capital funding. To put this into perspective, Black entrepreneurs start with $35,000 in capital, on average, compared to $107,000 for their white counterparts, according to a recent McKinsey report.
Moreover, according to The State of Black Entrepreneurship in America report from the Congressional Black Caucus Foundation in 2019, black entrepreneurs are almost three times more likely to have their profits negatively impacted due to a lack of access to capital. You would have thought that with over $1.2 trillion in spending power and while the black hair care industry alone generates billions in annual sales, black-owned businesses would receive more funding in order to branch out and contribute to the needs of many. However, this isn’t the case.
Black-Owned Marketplaces for Beauty, Hair and Skincare
Luckily, many entrepreneurs, despite the constant efforts to overcome the financing challenges, have built online communities, dedicated to shopping black. Thanks to online marketplaces such as 4th Ave Market, having access to black-owned beauty and personal care brands is now easier than it ever was before. These websites make these highly coveted products accessible to everyone, without the hefty price tag. Salim Holder, co-founder, mentioned in a refinery interview that they currently carry more than 90 brands that reached out to them and said, “We want to be sold on your site”.
And, honestly, there is no need to keep funding the industry giants with your hard-earned money when you could support many lesser-known businesses that create, test, and deliver the same (or even higher) quality products directly to your doorstep.
Unfortunately, even when it comes to the most female-centric industries like beauty and makeup, they are still predominantly run by men. Similar to the 4th Ave Market , Ebony Crown is yet another marketplace where black men and women can find beauty and skincare-related formulas specifically made for their needs. Ebony Crown is all about celebrating individuality and aspiring entrepreneurs who always try to subvert the industry standards by leading their own way to success. Launched in August 2020 by co-founders Onyekachi Amadi (CEO) and Margarita Sandoval (CMO), this self-funded marketplace and has since curated a list of products from 18 small- female-owned brands.
Black-Owned Home Brands to Look Out For in 2021
Not many talk about the fantastic black-owned home and decor businesses that are available online, and GOODEE surely falls under this category. Founded by designers and brothers Byron and Dexter Peart, this website offers a curated list of enviable home goods from many artisans with the same social and environmental mission. Apart from exhibiting designs from other artists, the two brothers also design products themselves. “A GOODEE stamp of approval means that every item we offer is transparently sourced, ethically made, and designed to last.” share the founders.
This home goods and accessories brand offers handmade, Senegalese home goods that are equal parts functional and display-worthy. “Expedition Subsahara was founded as a celebration of Senegalese culture and craftsmanship through radical respect.” mentioned Creative Director, and Founder Sofi Seck. Their colorful wicker baskets are arguably their most sought-after collection.
Black-Owned Luxury Footwear Brands
We all know by now that “nude shoes” are certainly not a one-color-fits-all situation. Each person has an ideal nude shade that should not be too pale or too dark for their complexion. Salone Monet has made it her mission to fix this issue through a luxury footwear collection of hand-dyed silk heels and flat shoes. “We have pioneered a new production model that significantly reduces waste caused in the fashion industry and gives artisans in the United States a new way to grow. Salone Monet explains, referring to her on-demand selling model.
Best Black-Owned Beverage Brand
Adjourn Tea House is a tea and wellness brand founded by Lanonia. The brand focuses on offering artisanal loose leaf tea and organic, hand crafted, full-leaf tea blends.
Fueled by a shared passion for all things wine, the McBride sisters created their own wine company which was named the largest Black-owned wine company in the United States as well as one of the most inclusive, accessible, socially aware, and sustainable. ” Our mission has become clear—to transform the industry, lead by example, and cultivate community, one delicious glass of wine, at a time. ” mentioned Robin and Andréa.
No matter your current needs, there is certainly a back-owned brand ready to deliver beautifully packaged goodies directly to you. Small businesses and entrepreneurs have always been wealth builders in our society. By supporting more Black-owned businesses, you give them the power to create more opportunities, inspire others to follow the same path, as well as help close the racial wealth gap.