From small Etsy shops selling jewelry and soaps to larger brands like Telfar—known for their bags beloved by HBCU students—or The Honey Pot Company, a woman-founded feminine care brand on the shelves of major retailers everywhere, Black businesses have seen a surge in popularity.
The term “Black-owned business” has gained traction in recent years as society has started to invest seriously in Black entrepreneurs. The hashtag “#BuyBlack” often trends on social media, rallying consumers to spend their money at Black-owned businesses to foster economic equity and keep Black dollars circulating within the Black community.
It appears that Black businesses are finally receiving recognition, but the path of Black entrepreneurship remains challenging.
Even with increased visibility, Black businesses face scrutiny, receiving complaints about product quality, pricing, or customer service. This raises the question: Are these criticisms warranted or are Black-owned businesses being held to a different standard?
Investment into Black businesses is not a new concept, however, the murder of George Floyd in 2020 sparked an uproar for the Black Lives Matter movement. The nation witnessed a cultural and political shift that has brought Black-owned businesses into the spotlight.
Since then, Black people nationwide have decided to use their purchasing power to strengthen their community driven by a “for us by us” mentality, and other racial groups “bought Black” to express their support for the Black community (or perhaps just to signal virtue). This influx of support, however, comes with an inevitable wave of criticism.
Some individuals take issue with the label “Black-owned Business,” questioning why knowledge of the business owner’s race matters. A post on Reddit features a creator voicing their disapproval of the label “Black-owned” being used as a selling point, complaining that these businesses are often “overpriced, have low-quality products, and terrible service,” but that “because they’re Black, you’re supposed to accept it.”
The sentiment expressed in the aforementioned post garnered some attention and thus, a resonating community. Many people hop on social media to air their grievances or joke about the poor customer service of Black-owned businesses, especially harping on the prices of Black businesses’ expensive goods and services.
In this TikTok post, a user harshly jokes about Black business prices, referencing a tweet that reads “these Black business prices boutta turn me into a racist.” Commenters flooded the replies in agreement, with one account convinced that high prices are the reason why Black businesses “can’t stay in business.”
While these complaints may reflect the experience of some consumers, can’t any business be guilty of poor qualities?
Julian Matthews, a junior computer science major at the university, expressed his strong support for Black entrepreneurs in his community, one of his favorites being the D.C.-based clothing line The Museum.
“The Black businesses in D.C., specifically, are very friendly, very helpful, and very familiar. I feel like the D.C. culture, in general, is about helping each other and wanting the community to look good,” he said.
However, Julian admitted he thinks products can be overpriced.
“It’s a complicated question because with the economy right now, a lot of things are generally expensive. However, sometimes when I shop at a Black business, it feels expensive plus some. So I do wonder—how am I expected to afford this?”
While it’s true that smaller Black businesses may have higher prices, it’s imperative to recognize that as a whole, all small businesses tend to charge more than larger retailers, with inflation playing a significant role in this.
According to marketplace.org “shipping costs are skyrocketing,” and “raw materials are getting more expensive,” making it challenging for small businesses to keep prices low. The article highlighted Whisk, a small business, as an example of how these rising costs force small businesses to raise their prices “to help cover the higher cost of goods.”
For small businesses, challenges like higher operating costs, limited resources and proximity-based competition are serious hurdles.
These enterprises often don’t have the financial backing or resources that major brands have access to, which allows larger corporations to offer lower prices.
In addition, according to the Washington Post, 47 percent of Americans support small businesses because of their “high ethical standards,” but maintaining these standards often leads to higher costs that contribute to higher prices for consumers.
So, it isn’t fair that the issue of high prices is a trait that seems to be exclusively attributed to Black-owned businesses when in reality higher prices are the outcome of the struggles small businesses face across the board.
This perception that Black-owned businesses are overpriced is harmful as it perpetuates an idea that these businesses are exploitative and weaves a sense of distrust between the community and these businesses. Additionally, it ignores the unique systemic hurdles Black-owned businesses face that go beyond the challenges experienced by their white counterparts.
According to ThirdWay, Black-owned businesses are drastically underrepresented, bringing in less revenue on average yearly, with 58 percent of Black entrepreneurs taking less than $100,000. They are often labeled as riskier investments, directly impacting their ability to secure business loans. This lack of financial access stifles growth and success, continuing to keep Black entrepreneurs at a disadvantage in the business world.
Admittedly, Black-owned businesses can have their pitfalls, but they are like any other business, flawed in their own right. Some may have poor services, strict guidelines, or genuinely expensive prices, however, to say these traits are exclusive to Black-owned businesses would not only be outlandish, but racially charged.
This hypercritical attitude towards Black entrepreneurs is harmful and fueled by the belief that Black businesses must “give back” or empathize with the Black community in ways not expected of other business owners.
These businesses represent their owners’ livelihoods, and consumers should not impose pressures on them that they wouldn’t place on larger corporations.
Copy edited by Anijah Franklin
