Benefits of Supporting Minority-Owned Businesses 

Supporting and assisting businesses of the North Shore and beyond is a critical goal for the Enterprise Center. Part of our mission is to welcome entrepreneurs, business owners and professionals of all ages and experience levels to come in and learn something new. One area that we would like to highlight this month is our growing minority and diversity-owned businesses across the North Shore of Massachusetts. 

The Stark Reality 

Starting a new business is difficult with many failing within the first few years of opening. According to the U.S. Bureau of Labor Statistics (BLS), “approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more.” 

The numbers are even more challenging for minority or diversity-owned businesses in our state. According to a 2023 Bloomberg Report, “Eight of 10 Black-owned businesses fail within the first 18 months.” Most minority-owned businesses continue to face a disproportionate number of challenges, namely a lack of access to capital even as the number of diversity/minority-owned businesses grows. 

Why You Should Support Minority-Owned Businesses

In light of these statistics, there are a number of reasons why consumers should support these businesses. Here are just a few reasons why taking steps to support your local minority-owned businesses is a win-win for everyone. 

Closing the Racial Wealth Gap 

By supporting minority-owned businesses, we can create more opportunities for meaningful savings, property ownership, credit building and generational wealth.

Strengthen The Local Economy 

When small businesses do well, so too, do the local communities. Revenue from these local businesses tends to stay in the community thus strengthening the businesses and the community’s tax base. 

Creating Jobs & Opportunities 

Minority businesses fuel the economy by providing jobs and growth potential for people in that community. Over the past decade, there is evidence of how minority businesses help support job creation. A US Census Data report showed that Black-owned businesses created 1 million jobs compared to white-owned businesses which created almost 56 million. 

How Can You Contribute? 

There are many ways that individuals and other businesses can help promote diversity-owned businesses. Start by buying from local businesses. This not only helps support the local economy but also can help sustain minority-owned businesses. 

In addition to buying products or services, including minority-owned businesses in local and regional organizations that can help bolster their brand name and help support them for the long term. 

Sharing on social media your positive experiences with other small businesses can also help support minority businesses. Word of mouth and positive reviews can do wonders to help contribute to the success of local businesses. 

For more information on the North Shore’s Diversity Directory, visit the North Shore Alliance and start supporting local businesses today. 

Categorised in: Blog, Economic Developement, Established Business, female entrepreneurs, minority-owned businesses