¡Feliz diez y seis de Septiembre! September 16 marks Mexico’s Independence from Spain as well as the beginning of Latine Heritage Month, (yes, I use Latine, no I don’t use Latinx.) I thought this would be the perfect time to focus on the social impact part of purpose-driven work. At Axiom of Purpose, this means we work with organizations that serve communities of color, as well as minority-owned businesses themselves.
We hear a lot about awareness months and awareness weeks and days - where everyone pays a lot of attention to a specific group or cause. Then what? We want to talk about how we move beyond awareness to action.
In today's diverse and interconnected world, supporting businesses owned by people of color isn't just the right thing to do, it's essential for building a more equitable and prosperous future for all. Here are just a few reasons why we should all be paying attention to who we do business with.
Boost local economies and create local jobs
Studies show that minority-owned businesses are more likely to reinvest their profits into the communities they serve, creating jobs and opportunities for local residents. This strengthens the local economy, benefiting everyone within it.
In this Democracy Journal article, Minority Report: Expanding Opportunity for All they show how this helps impoverished communities specifically:
By helping minority businesses to achieve greater scale, jobs and income are created in communities that have the greatest need. Our research has shown that 31 percent of minority businesses are located in high-poverty areas, as opposed to 24 percent of nonminority-owned businesses.
Bridge the wealth gap
The wealth gap between white households and Black, Indigenous and Latine households remains a significant issue. The Federal Reserve showed that in 2022 the median wealth for white households was $285.01k; for Asian American households was $536.02k; for Black households was $44.89k; for Latine households was $61.62k; and for all others including mixed race and Native American was $62.9k.
According to the Brookings Institution article, Black wealth is increasing, but so is the racial wealth gap:
Business equity is another vital wealth-building component for Black families, representing 21% of wealth accumulation for Black households. The proportion of business equity in overall growth was much lower for Latino or Hispanic households (4%) but similar for white households (22%) and other non-Latino or Hispanic racial groups (21%). An increase in Black businesses can play a critical role in increasing wealth, and not just for business owners. In 2020, Black businesses employed 1.3 million people and created over 48,000 new jobs.
By supporting minority-owned businesses, we help to close this gap and create a more level playing field for all. This empowers BIPOC communities and fosters financial stability for generations to come.
Inspire the next generation
Representation matters - and not just in Hollywood or in classrooms, but absolutely everywhere. When young people of color see successful business owners who look like them and their families, who they can relate to culturally, it provides powerful inspiration and realistic role models. This fuels their dreams and encourages them to pursue their own entrepreneurial aspirations. And it is not just for youth, it is for other people of color entering the workforce.
Anoushka Khandwala describes it well in her article Why Role Models Matter: Celebrating Women of Color in Design
When you exist as a minority within a structure that favors the majority, your mere existence becomes activism. This often involves having to adapt behaviours (see: code-switching) simply to be accepted.The result is an ongoing sense of fatigue; surrounded by people who don’t look like you or come from a similar background can lead to micro-aggressions building up, a niggling feeling of imposter syndrome, and an overwhelming sense that you don’t belong.
Supporting minority-owned businesses helps us build cultures of belonging for people of color.
Celebrate culture
Minority-owned businesses often infuse their cultural heritage, identity, and traditions into their products and services. This adds vibrancy to the marketplace, enriching our communities, preserving cultural legacies and providing opportunities for others to share in and learn about different traditions.
Create a diverse marketplace
Minority-owned businesses often cater to specific needs and preferences of their communities, offering unique products and services that might not be readily available elsewhere. This ensures a wider variety of options for consumers and fosters a more diverse and inclusive marketplace.
For example, lumpia is a staple in San Diego, thanks to a thriving Filipino community who share this signature dish and many others in restaurants and catering businesses across the county.
Everyone in Denver is accustomed to ordering green chile and smothering everything from fries to burritos to mexican hamburgers to mashed potatoes in this very specific style of pork chile verde.
You can’t find lumpia in Denver.
You can’t find green chile in San Diego.
Trust me I have tried.
Champion community investment
Minority-owned businesses are often deeply invested in the well-being of their communities. They are more likely to sponsor local events, donate to local causes, and create opportunities for local residents. Supporting these businesses strengthens the social fabric of our communities and fosters a sense of shared responsibility.
84% of minority-owned businesses listed at least one community partnership or impact tied to their business. Common responses for community partnerships and impacts included charitable giving, volunteerism, and community service days.
McKinsey & Company polled 1,000 small business to research how the pandemic impacted minority-owned businesses and they found “during COVID-19, 40% of minority-owned small businesses added new services to support their communities and employees, compared with 27% of non-minority business owners.”
By choosing to support minority-owned businesses, we are not just making a purchase, we are investing in a brighter future. We are investing in stronger communities, a more equitable economy, and a richer cultural tapestry for all. Next time you're looking for a new restaurant, a unique product, or a reliable service, consider seeking out a minority-owned business. Every choice can make a difference.
Online BIPOC-Owned Businesses:
https://shopculturise.com/pages/directory
Colorado:
https://shopbipoc.com/
P.S. Check out our What We’re Up To Wednesday series where we make many BIPOC recommendations on 📖 books we’re reading, 🛍️ products we’re trying, 🎧 podcasts we’re listening to, and 📺 shows we’re watching.kely to sponsor local events, donate to local causes, and create opportunities for local residents. Supporting these businesses strengthens the social fabric of our communities and fosters a sense of shared responsibility.