5 Financial Steps to Support and Invest in Black-Owned Enterprises

 

Introduction: Why Black Business Month Matters

August marks National Black Business Month, a time to recognize and celebrate the tremendous contributions of Black-owned businesses to the U.S. economy and local communities. Established in 2004 by engineering entrepreneur Frederick E. Jordan and John William Templeton, this annual observance highlights both the achievements and the unique challenges faced by Black entrepreneurs .

Despite representing approximately 14% of the U.S. population, Black-owned businesses account for only about 3% of all classifiable firms and generate just 1.3% of total business revenue . This disparity underscores the critical need for concerted support and investment in these enterprises.

This article provides five actionable financial steps you can take to support and invest in Black-owned businesses, not just during Black Business Month but year-round. By implementing these strategies, you'll contribute to closing the racial wealth gap while building a more equitable and vibrant economy for all.

Understanding the Landscape: Challenges and Opportunities

Black entrepreneurs face systemic barriers that make business ownership disproportionately challenging. According to a 2023 survey by Intuit QuickBooks:

• 57% of Black business owners reported being denied a bank loan at least once when starting their business, compared to 37% of non-Black owners

• Black business owners need approximately $21,000 to start their businesses, compared to $16,000 for non-Black peers

• 79% of Black business owners have experienced racism from customers, with 48% experiencing it within the past year 

These challenges make supportive financial practices especially impactful. Meanwhile, Black women represent the fastest-growing demographic in business ownership, with the number of Black women-owned businesses growing by 20.2% in 2020, outpacing the overall growth of Black-owned businesses (14.3%) and women-owned businesses (3.1%) .

5 Financial Steps to Support and Invest in Black-Owned Enterprises

1. Bank Black: Move Your Accounts to Black-Owned Financial Institutions

Why it matters: Black-owned banks are specifically mission-driven to address the racial wealth gap and support Black communities. These institutions understand the unique challenges faced by Black entrepreneurs and are more likely to provide fair lending practices and personalized support .

How to do it:

• Research Black-owned banks and credit unions in your area or those offering online services

• Consider moving your personal and business accounts to these institutions

• Explore products like secured credit cards and second-chance checking accounts designed to build credit in underserved communities

Examples of Black-owned financial institutions:

• OneUnited Bank: The largest Black-owned bank in the U.S., offering digital banking services nationwide 

• Citizens Savings Bank and Trust Company: The oldest continuously operating African American-owned bank in the U.S., founded in 1904 

• Guava: An online banking platform specifically designed for Black small-business owners 

2. Consciously Redirect Your Spending

Why it matters: According to studies, a dollar stays in a Black neighborhood for an average of just six hours before circulating elsewhere, compared to 28 days in other communities. This represents a massive economic leakage that undermines wealth building in Black communities .

How to do it:

• Use online directories and apps like EatOkra to find Black-owned businesses in your area

• Implement "Black Food Fridays" or similar themed shopping days to build habits

• Allocate a specific percentage of your monthly budget to spending at Black-owned businesses

• When making significant purchases, research Black-owned alternatives first

Statistical insight: Approximately 3.12 million Black-owned businesses in the United States employ 1.18 million people and generate $133.7 billion in total sales .

3. Invest Directly in Black Entrepreneurs and Businesses

Why it matters: Black entrepreneurs receive less than 2% of overall venture funding, with Black women receiving just 0.34% of all venture capital . Direct investment can help address this dramatic funding gap.

How to do it:

• Explore investment platforms that focus on minority-owned businesses

• Consider peer-to-peer lending to Black entrepreneurs through reputable platforms

• Invest in Black-owned stocks and ETFs when available

• Participate in crowdfunding campaigns for Black-owned businesses

Success story: Bank of America has committed to giving more than $500 million in equity investments to minority- and women-led fund managers, with more than 65% of these funds led by Black individuals .

4. Advocate for Corporate and Government Support

Why it matters: Systemic change requires policy changes and corporate commitment. Advocacy helps create lasting structural support for Black businesses beyond individual actions.

How to do it:

• Support organizations lobbying for policies that benefit Black entrepreneurs

• Encourage your employer to diversify their supplier chain to include Black-owned businesses

• Advocate for financial education programs in underserved communities

• Support funding for Community Development Financial Institutions (CDFIs)

Notable example: Bristol Myers Squibb reached its goal of spending $1 billion globally with diverse-owned businesses three years earlier than planned, supporting Black-owned firms like Sodexo Magic and BCT Partners .

5. Provide Financial Education and Mentorship

Why it matters: Many Black entrepreneurs lack access to the networks and financial knowledge that facilitate business growth. Sharing expertise can be as valuable as financial support.

How to do it:

• Volunteer with organizations that provide business mentorship to Black entrepreneurs

• Share financial literacy resources in your community

• Offer pro bono professional services to Black-owned businesses

• Create or participate in networking events connecting Black entrepreneurs with potential advisors and investors

Program example: Capital One created a supplier diversity mentoring program that pairs small business owners with mentors from across the company. The program covers topics like marketing, social media, design-thinking, cybersecurity, legal and finance, and change management .

Case Study: OneUnited Bank - A Beacon of Economic Empowerment

OneUnited Bank, the largest Black-owned bank in the United States, provides an excellent case study in supporting Black economic empowerment. Founded in 1968 following the assassination of Dr. Martin Luther King Jr., the bank was created because African Americans couldn't get financial services from white-owned banks .

Strategies and Impact:

1. Digital Innovation: In 2006, OneUnited became the nation's first Black digital bank, a strategic move that paid off significantly during the pandemic when the bank doubled in size .

2. Community Engagement: The bank's mural project in Liberty City, Miami, featuring images of Trayvon Martin and Michael Brown, became a turning point in connecting with the community. President Teri Williams noted, "People started to come into the bank who had never been in a bank before in their lives" .

3. Product Development: OneUnited offers products specifically designed to address historical disparities, including secured cards to help build credit and second-chance checking for customers who have previously been rejected for accounts .

4. Social Activism: The bank describes itself as "unapologetically Black" and has supported Black Lives Matter and social justice movements for years. This authentic positioning attracted customers from all 50 states who wanted to align their banking with their values .

Customer Success Story:

Willie Simmons and Darrin Jenkins, co-owners of Public Security, Inc. in Los Angeles, have banked with OneUnited for 25 years. The bank provided them with a line of credit to build their business and helped them secure a PPP loan during the pandemic. "Any of the banking services that I've needed, they've been able to take care of," Simmons reports .

This case study demonstrates how targeted financial services combined with authentic community engagement can create substantial impact for Black businesses and communities.

Frequently Asked Questions (FAQs)

Q1: Why should I specifically support Black-owned businesses?

Supporting Black-owned businesses helps address historical economic disparities and contributes to closing the racial wealth gap. These businesses face systemic barriers including limited access to capital, higher startup costs, and customer discrimination. Your support helps create a more equitable economy while often discovering excellent products and services .

Q2: How can I find authentic Black-owned businesses to support?

Use online directories and resources such as:

• Local Black business associations and chambers of commerce

• Social media hashtags like #BuyBlack and #BlackBusinessMonth

• Apps like EatOkra for Black-owned restaurants

• The Department of Small and Local Business Development in various cities often maintains directories 

Q3: What are some challenges Black business owners face when seeking funding?

Black business owners face several unique challenges:

• Higher denial rates: 57% of Black business owners report being denied bank loans at least once when starting their business

• Limited venture capital: Less than 2% of overall venture funding goes to Black-owned startups

• Less favorable terms: Even when approved, Black business owners often receive less favorable products and lower funding amounts 

Q4: How does banking with Black-owned financial institutions make a difference?

Black-owned banks are mission-driven to address systemic economic challenges in Black communities. They're more likely to:

• Offer personalized loan application assistance

• Accept alternative credit history

• Provide financial education resources

• Understand the unique challenges and opportunities in Black communities
  These institutions reinvest deposits back into the communities they serve, creating a virtuous cycle of economic empowerment .

Q5: How can I support Black-owned businesses beyond just spending money?

There are several non-financial ways to support:

• Amplify on social media by sharing and tagging Black-owned businesses

• Provide mentorship if you have business expertise

• Offer professional services pro bono

• Advocate for policies that support Black entrepreneurs

• Participate in community events that feature Black-owned businesses 

Conclusion: Building Economic Equality Together

Supporting Black-owned businesses isn't just about individual transactions—it's about participating in a movement toward economic justice. By implementing these five financial steps, you contribute to creating a more equitable business landscape while discovering innovative products and services.

Remember that consistent, year-round support creates more impact than once-a-year gestures. As Teri Williams of OneUnited Bank emphasizes, we've come a long way but still have more work to do to address economic disparities .

This Black Business Month, take at least one concrete action from this list—whether it's moving your accounts to a Black-owned bank, consciously redirecting your spending, or mentoring an emerging Black entrepreneur. Together, we can build on the legacy of Black Wall Street and create thriving Black business communities for generations to come.

The Lazy Person's 52-Week Savings Challenge: Save $5,000 on Autopilot

 

Forget Everything You Know About Saving Money

Raise your hand if this sounds familiar: You get motivated by a savings challenge. You start strong, stashing away $20 in week one, $30 in week two. You’re feeling like a financial genius! Then, week 25 hits, and they want you to save $100. Week 40 demands $250. Suddenly, it’s the holidays, your car needs new tires, and that challenge that started as a fun game now feels like a financial straitjacket. You feel guilty, you quit, and another year ends with your savings goals unmet.

What if I told you there’s a way to save $5,000 this year without that constant struggle? A method so brilliantly lazy that it requires almost zero willpower and runs seamlessly in the background of your life?

Welcome to the Lazy Finance 52-Week Savings Challenge. This isn't your average chart. We’re throwing the old, rigid rules out the window. This approach uses behavioral science and automation to work with your brain—and your bank account—not against it. Get ready to save smarter, not harder.

Why Traditional Savings Challenges Set You Up for Failure

Let's be real: most savings challenges are designed for failure. They ignore two fundamental truths about personal finance and human nature.

The Problem with Fixed-Amount Challenges

The classic 52-week challenge, where you save $1 in week one, $2 in week two, all the way up to $52 in week 52, has a fatal flaw. It saves you $1,378, which is great, but its structure is completely backward. It asks for the least amount of money when you have the most motivation (in January) and the most amount of money when you’re likely stretched thinnest (during the holiday season in December).

This creates a few big problems:

• Psychological Burnout: Constant willpower is exhausting. Decision fatigue is real, and eventually, you'll miss a week and feel like quitting altogether.

• Financial Inflexibility: Life isn't predictable. A fixed amount doesn't care if you have an unexpected medical bill or your car breaks down.

• The "All-or-Nothing" Trap: Many people think if they miss one week, the whole challenge is ruined, so they give up completely.

The Behavioral Science of "Easy"

Studies in behavioral economics, like those behind the "Save More Tomorrow" plan by Shlomo Benartzi and Richard Thaler, show us the secret: Make it easy, make it automatic, and make it gradual.

People are far more successful at saving when it happens automatically (out of sight, out of mind) and when increases are small and timed for the future. This challenge is built on that exact principle.

How the Lazy Finance $5,000 Challenge Actually Works

The genius of this method is its simplicity and adaptability. We’re ditching fixed dollar amounts for percentages. This makes the challenge personal and automatically adjusts to your income.

The Percentage-Based Savings Plan

Instead of telling you to save $50 this week, we’re going to save a small percentage of your income. This is fair, flexible, and scales whether you make $40,000 or $140,000 a year.

Here’s the gradual, lazy schedule:

Week Range	Savings Percentage	Example: $60,000 Annual Income (~$5,000/month)
Weeks 1-4	1%	~$50 per week
Weeks 5-8	2%	~$100 per week
Weeks 9-12	3%	~$150 per week
Weeks 13-16	4%	~$200 per week
Weeks 17-52	5%	~$250 per week

*Note: Percentages are based on your monthly take-home pay. The example uses a gross annual salary of $60,000, which is roughly $5,000/month before taxes.*

The Math: How You Get to $5,000+ (Without Even Trying)

Let’s break down the numbers for our example of someone taking home approximately $4,000 per month after taxes:

• First 16 weeks (Months ~1-4): You save a smaller amount, totaling around $2,000. This builds the habit painlessly.

• Next 36 weeks (Months ~5-12): You’re comfortably saving 5%, or about $1,000 per month. This period saves you $9,000.

• Grand Total: $11,000

Wait, that's more than $5,000! Exactly. The 5% goal is a sustainable target that often leads to saving more than you expected. Even if you have a lower income, saving 5% consistently will get you impressively far toward your goal.

Your Step-by-Step Guide to Effortless Implementation

The "lazy" part isn't about doing nothing—it's about a one-time setup that does the work for you forever.

Step 1: The 10-Minute Automation Setup

This is the most critical step. You will eliminate the need for willpower by making saving automatic.

1. Open a High-Yield Savings Account (HYSA): If you don’t have one, do it now. These accounts offer much higher interest rates than traditional big-bank savings accounts, so your money grows faster. Popular options include Ally, Marcus by Goldman Sachs, or Discover. It takes 10 minutes online.

2. Set Up Automatic Transfers: Log into your primary bank account. Navigate to the "Transfers" section.

3. Schedule Your Transfers: Align transfers with your payday. If you get paid bi-weekly, set up a transfer for the day after each paycheck hits. Start with your chosen percentage (e.g., 1% of your paycheck).

4. Schedule Incremental Increases: Most banks let you schedule future-dated transfers. Go ahead and set the increases for the dates you’ll move to 2%, 3%, etc. Future You will be so grateful.

Step 2: The Mindset Shift: Pay Yourself First

Reframe your thinking. This isn't money you're "losing" or "not spending." This is you paying your future self first. It’s non-negotiable, just like rent or your electric bill. By automating it, you never even see the money, so you naturally adjust your spending to what’s left over.

Real-Life Success Stories: It Works for People Just Like You

Case Study: Sarah, the Freelancer

Sarah is a graphic designer with an irregular income, which made fixed-amount savings impossible. The percentage-based model was a game-changer.

• Her Strategy: She calculated her percentage based on a conservative estimate of her monthly income. In great months, she saved more without trying; in lean months, she saved less but never felt guilty.

• The Result: She saved over $6,000 in a year and finally built a robust emergency fund without stress.

Case Study: Mike & Jessica, The Young Family

With two kids, a mortgage, and daycare costs, this couple thought saving was a fantasy.

• Their Strategy: They started with just 1% from both their paychecks—a amount so small it was unnoticeable.

• The Result: The gradual increases allowed their budget to adapt slowly. By month six, saving 5% felt effortless. They ended the year with over $8,000 saved, which they used for a family vacation and a new patio fund.

Pro Tips for the Ultra-Lazy Saver

Once your basic system is running, you can level up with these zero-effort strategies:

1. The Round-Up App: Connect an app like Acorns or Chime to your debit card. Every time you buy a coffee for $4.75, it rounds up to $5 and invests or saves the $0.25. You won't feel it, but it adds up to hundreds per year.

2. The Windfall Strategy: Make a rule: any unexpected money—tax returns, birthday cash, work bonuses, a rebate check—gets split 50/50. 50% for fun, 50% straight to your savings challenge. Instant progress boost without a lifestyle change.

3. The "Found Money" Tactic: Cancel a subscription? Redirect that monthly fee to your savings. Get a raise? Immediately increase your savings percentage by half of the raise amount. You still get more spending money, but your savings grow faster.

Conclusion: Your Financial Transformation Starts Now

The Lazy Finance 52-Week Challenge isn't another gimmick. It's a sustainable, intelligent system built on how people actually behave and manage money. By embracing automation and a percentage-based approach, you remove the guilt, the willpower, and the failure from the equation.

You don't have to be perfect. You just have to be automated.

Your call to action is simple:

1. Start: In the next 10 minutes, open that high-yield savings account or set up your first automatic transfer.

2. Share: Who do know who struggles to save? Share this post with them and become accountability partners.

3. Subscribe: Want more lazy finance tips? Subscribe to our newsletter for straightforward advice on building wealth without the complexity.

4. Comment Below: What’s your biggest hurdle to saving? Or what are you going to do with your $5,000? Telling someone makes you more likely to achieve it!

Your journey to financial security isn’t about drastic overhauls. It’s about small, smart systems that do the work for you. Here’s to a year of building wealth the lazy way.