(ThyBlackMan.com) Frugality includes all the other virtues. —Cicero
According to Blackdemographics.com: “Black owned businesses in the United States increased 34.5% between 2007 and 2012 totaling 2.6 million Black firms. More than 95% of these businesses are mostly sole proprietorship or partnerships which have no paid employees.”
According to Nielsen, The State of the African-American Consumer: “African Americans shop more frequently than all other groups, but spend less money per trip and overall. These cultural and behavioral
dynamics reflects their tendency to make quicker/smaller purchases based on short-term needs rather than the desire to stock up.” The data also suggests that African-American women tend to be the primary decision makers for most household buying decisions.
Black Americans are just 13 percent of the U.S. population, and yet, we’re on trend to have a buying power of $1.4 trillion by 2019. A new Nielsen study hints that marketers may want to start developing a better consumer-producer relationship with African Americans if they want to make big bucks.
For example, when our community runs out and purchases Michael Jordan shoes at consistent rates that company no longer needs to spend their money marketing to our community. They will use that money to focus on getting new customers. A large percentage of the corporate budget is to collect this data, this information is very useful to the sales and advertising managers.
Blacks spend less money in black-owned businesses overall than other racial and ethnic groups spend in businesses owned by members of their groups, including Hispanics and Asians. For example every race with the exception of black people seems to support the businesses of their own. Being an entrepreneur is one of the most popular ways to make high residual income. Black people buy products from brands such as Jordan, Louis Vuitton, and Ralph Lauren at an alarming rate. The prices of these brands are very expensive, however, those same black people would cringe at the thought of paying $20 for a black owned clothing product saying, “It’s too expensive.” The question here would be is the product too expensive or not “renowned enough?”
Black people don’t support black owned businesses and then wonder why there is no progression in the companies. Black businesses can never fully succeed without the help of their own people. It begins with us first. Once we begin to support one another, maybe we’ll begin to see more Oprah Winfrey’s and Cathy Hughes’. In order for even more black people to succeed, black people must support each another. Instead of downgrading, let’s begin to uplift one another and make a difference.
There’s been much discussion about the continuously frivolous spending habits of African-Americans while still struggling to get ahead in terms of long-term financial gain and recent statistics on African-American buying power are painting a vivid picture of just how much damage this counterproductive trend is doing in our communities. Using hard earned money to treat ourselves once is a while is certainly not a crime, but when our communities are suffering from investing more of their money into temporary, superficial things than things of long-term value, there’s definitely a huge problem at hand.
Do you prefer to support black business or spend your money elsewhere? We want to hear from you.
Staff Writer; Amber Ogden
One may also view more of her work over at; AmberOgden.com.
Also connect via Instagram; 1amberogden and Twitter; MsAmberOgden.
