Reports: Black-Owned Businesses Still Close At Double The Rate Of White Businesses
The spread of COVID-19, or the novel coronavirus, pandemic has been detrimental to small businesses around the country. Black-owned small businesses have taken the hardest hit due to longstanding racial disparities and lack of resources. Now new studies are showing that Black-owned businesses are shutting down at higher rates than their white counterparts.
Overall, small businesses have taken a huge hit. A National Bureau of Economic Research (NBER) study showed that number of businesses were cut by 2.2 million between February and May, a 15% loss. According to a report by The Washington Post, 26% of Black business owners have closed their businesses between February and May 2020. By comparison, only 11% of white business owners have closed shop.
One reason behind this trend is many businesses owned by Blacks and immigrants are rooted in industries that are deemed “non-essential,” which forced storefronts to close for a few months during quarantine. In fact, 66% of Black entrepreneurs run businesses in essential industries compared to the national average of 76%.
“The negative early-stage impacts on minority- and immigrant-owned businesses, if prolonged, may be problematic for broader racial inequality because of the importance of minority businesses for local job creation, economic advancement, and longer-term wealth inequality,” said economist Robert Fairlie of the University of California at Santa Cruz, in an interview with Bloomberg. The study also found that in April 41% of Black business owners shut their doors either permanently or temporarily. Despite the states going forward in their reopening process, Black businesses are still suffering at staggering rates.
“If a more complete rebound does not happen soon, the long-term economic consequences could be severe,” Fairlie told The Washington Post. “Many minority business owners will not have the resources to weather prolonged closures, reduced demand from health concerns, and a more comprehensive recession.”
Lawyer: Black Hollywood Needs To Hire Black Agents And Lawyers Before Crying About Inequality
Back in 2018, Hollywood lawyer Jaia Thomas was excited — as were hordes of fans — when “Black Panther” hit the big screen. After all, it was a movie of totally Black talent. Thomas didn’t realize at the time that the Blackness stopped at the talent. The actors were almost entirely represented by white teams.
“A few weeks after the film’s release, I spent some time researching the names of the attorneys, agents, managers and publicists who represented the cast. Chadwick Boseman’s lawyer? White. Michael B. Jordan’s publicist? White,” Thomas wrote in Hollywood Reporter. “The thrill of watching such breathtaking production faded against the irony of Black actors discussing ‘Wakanda forever’ with almost all-white teams.”
An entertainment attorney who has been practicing law for 14 years, Thomas looked for a solution to provide Black representation in Hollywood. She launched Diverse Representation — a website with the names of Black agents, attorneys, managers, and publicists across the country — using her own resources and money.
Now is the time for agencies and firms to start asking why they have such limited Black leadership, Thomas wrote.
“Are they creating pathways for higher recruitment and retention of Black employees? They must create strategic long-term partnerships with colleges and universities to recruit a more diverse slate of candidates and make their hiring process more open and transparent.”
Thomas feels the onus is on Black talent to demand more representation by Black people in the industry. Once they start demanding this, the industry will be forced to respond, she wrote. She stressed the need for many more Black-owned talent agencies, management companies, and law firms.
The Academy of Motion Picture Arts and Sciences has been making some improvements — albeit slowly — since the debut of the hashtag #OscarsSoWhite in 2014 when people went online to complain about how few Black people and people of color received awards and were on the Oscars voting boar.
The Academy recently announced a new initiative to expand Black representation in the filmmaking industry, NPR reported. Called “Academy Aperture 2025,” the initiative includes a plan to require Oscar nominees to meet certain standards for representation.
“While the Academy has made strides, we know there is much more work to be done in order to ensure equitable opportunities across the board,” Academy CEO Dawn Hudson said in a statement. “The need to address this issue is urgent. To that end, we will amend — and continue to examine — our rules and procedures to ensure that all voices are heard and celebrated.”
The Academy says it’s creating a task force of film industry leaders “to develop and implement new representation and inclusion standards for Oscars eligibility by July 31.”
“In the more than 90 years of the Oscars, no Black director has ever won the Best Director award, no Black women have been nominated in that category, and only two films by Black directors have been awarded Best Picture: Steve McQueen’s ‘12 Years a Slave’ and Barry Jenkins’ ‘Moonlight,’” Yahoo reported.
Last week, the Academy reported that a record number of women and people of color were elected to its board of governors, including Whoopi Goldberg and Ava DuVernay. This means the Academy now has 26 women and 12 Black people or people of color on its 54-person board of governors, Vanity Fair reported. This is a first for the organization.
DuVernay was snubbed for a best-director Oscar five years ago. All Academy governors, branch executive committee members and Academy staff will be required to attend unconscious bias training.
“To truly meet this moment, we must recognize how much more needs to be done, and we must listen, learn, embrace the challenge, and hold ourselves and our community accountable,” Academy President David Rubin told NPR.
From Beauty Products to Publishing to Wellness, Kimberly Chapman Continues to Expand
Being multifaceted helps build the type of success others may envy or it can create difficulty in focusing on what needs to be done in order to be successful. Luckily for Kimberly Chapman, being multifaceted not only works for her, but it helps her expand and establish the brands she creates. From beauty products to marketing, and—since the coronavirus pandemic—masks, and hand sanitizers, Chapman has proven that nothing stops her from getting her hustle on!
BLACK ENTERPRISE talked to Chapman about how the pandemic has affected her business and how being a Black woman entrepreneur allowed her to set her own standards to succeed in business.
You’re a very busy woman based on the number of companies you run. What motivated you to start the company and to have so many layers within Chapman Products Inc.?
My motivation came from my desire to grow. As a businesswoman, achieving success comes from listening to the consumer and producing the best product to fit their needs. I envisioned our company to be global. My husband and I created a plan and with each new idea came a new layer. After creating new beauty products, beginning with Nairobi Professional Products, I wanted to create an avenue to market our products; that’s when we birthed Sheen Magazine.
How have the effects of the coronavirus pandemic affected your ability to do business?
The impact of the pandemic has just shifted our mindset. Instead of folding or giving up, we found better ways to work. During the pandemic, our energy went into helping as many people as possible. We created masks and a new line of hand sanitizer. With these products, we were able to create a new way of productivity in our company.
The pandemic only forced us to continue to create spaces for my employees and my community to be better.
What was the reason behind starting the Chapman Foundation?
Chapman Foundation was created to help our stylists and barbers’ children attend school. We wanted to give back to those who give their great energies to us through their work. Later, we grew to give to HBCUs—as a fellow student of an HBCU, I thought it was a great way to reach more people.
We offer scholarships, host toy drives, food drives, and work to bring awareness to breast cancer through our 4K walk in both South Carolina and Indianapolis.
It was important to give back because there’s so much wealth that can be shared around the world. I believe that wealth is having a community that shares and grows together.
As a black woman entrepreneur, what were some of the difficulties you’ve faced that have helped shape your success, and what advice would you give anyone who wants to enter the world of entrepreneurship?
I wouldn’t call them difficulties, but attention snatchers that caused us to diligently focus and plan accordingly. I remember the days when I was packing the product myself and delivering. During those times, I reminded myself, that this is my dream and competition doesn’t exist. Set a standard and hold your company to that no matter where you are on your journey. That’s what I would tell others. Be fearless, bold, and don’t be afraid to stand out.
What should we anticipate from the Chapman Products company?
Expect the same great products and great Sheen magazine. We also have an anti-aging skincare line and weight loss teas. The brand is Akura Wellness. And we would like to thank you for your continued support.
Dr. Glenn Toby Utilizes Principles Learned At an Early Age to Provide Financial Advice
Coming from a background of poverty can be used as an excuse to fail or the push to become successful. Dr. Glenn Toby decided to use that as motivation to build a thriving business that is still growing. As the owner and chief executive officer of Glenn Toby Enterprises (GTE), he utilizes the tools taught to him at an early age to give clients the advice needed to make their money work for them.
The former rapper-turned-entrepreneur took the time to speak to BLACK ENTERPRISE about his meager beginnings and how the coronavirus pandemic has helped propel his business.
How were you able to reach the pinnacle of success coming from a background immersed in poverty?
I experienced homelessness at a very early age. During my youth, I was surrounded by love, support, and encouragement to dream. My mother and grandmother instilled pride, respect, and integrity in us at an early age. My brother Randall and I, we were always reading and were in education-based programs. We grew up in a spiritual environment, during our years as displaced youth without stable housing.
As the CEO of Glenn Toby Enterprises (GTE), how are you able to facilitate the functioning of everything in your company?
We are a global investment and consulting firm; we are comprised of a team of best-in-class professionals. Each company has its own divisional head. This prevents us from working in silos and enables our group to communicate in a more effective manner. We represent corporations, high-profile celebrities, leaders in various industries. Consulting and advising is a strong point.
As a guest lecturer and speaker, how do you prepare yourself when you’re about to say words of wisdom to your audience?
I speak from the heart. My early years as a musician and a rapper prepared me to deliver my speeches and presentations without reading from a document or rehearsing what I’m going to say. My work is done well in advance, it requires in-depth research as well as the ability to read the audience. This enables me to stay ahead of the trends or adjust to last-minute changes that may be required.
How has business been for you during the coronavirus pandemic? In what ways has the crisis affected how you do business?
My business has exploded since the pandemic. I practice utilizing savings and investment programs that have enabled me to build up a cash reserve to sustain these difficult times. Typically I recommend that each household has a savings reserve of no less than three months. I also suggest all businesses have reserve capital or a line of credit for a period of up to 6 months.
The pandemic forced me to plan ahead and pivot with these changing times. I used this time out to reposition myself, and shift the business model, policies, and procedures. You must be informed and prepared with insightful planning, and use accurate data and metrics to determine the best course of action or reaction in the marketplace or the end consumer.
Since you’ve been successful in finance, management, motivational speaking, and several other endeavors, what advice would you give to those who aim to become a successful entrepreneur?
It is imperative to continue to educate yourself. Today there are unlimited options. The world has changed forever as we know it, due to the COVID –19 pandemic. The great news is we are living in the digital society: we have access to a global network with infinite online continuing courses, podcasts that grant you unprecedented access to associations, alumni, and civic organizations.
Who Should Get Priority Access To COVID-19 Vaccine?
Some COVID-19 vaccines are showing positive signs of working, leading many to wonder who should get first access to a vaccine.
According to MarketWatch, the Centers for Disease Control and Prevention officials and an outside advisory committee are brainstorming the rollout of a COVID-19 vaccine. The agency is also considering giving priority access to the vaccine to several groups including key national security officials, high-risk individuals, and essential workers.
However, some are wondering if Black and Latino Americans, the most affected races, should get priority access. Philanthropist Melinda Gates, the wife of Microsoft co-founder Bill Gates, floated the idea in an interview withTime Magazine.
“In the U.S., that would be Black people next, quite honestly, and many other people of color. They are having disproportionate effects from COVID-19,” Gates told Time.
She added the next step would be to prioritize those with underlying conditions, older people, and essential workers. Black and Latino Americans have been getting infected and dying of COVID-19 at higher rates than White Americans.
In May, the NAACP launched the #WeAreDoneDying campaign to expose inequities in the healthcare system. A month later Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, admitted institutional racism is a contributing factor to the severe impact the virus has had on Black Americans.
Despite being a good idea, it doesn’t seem like giving priority access is an idea many are on board with. CDC spokeswoman Jasmine Reed wouldn’t commit to the idea.
“The ACIP board has created a work group to review data on COVID-19 vaccine candidates and consider a recommendation to CDC,” Reed told MarketWatch. “A portion of the group’s work will involve determining if there are priority groups that should get vaccinated based on occupation, risk of serious outcomes, and health disparities.”
Georges Benjamin, the executive director of the American Public Health Association and former secretary of the Maryland Department of Health and Mental Hygiene, said fast tracking a COVID-19 vaccine based on race and ethnicity could lead to the wrong groups being prioritized.
“It says that people are at risk because of their skin color, which isn’t the case—they’re at risk because they have public-facing jobs, chronic diseases, and other social determinants that put them at risk,” Benjamin said. “And we have to be very careful—this is not a Black disease. People should not be concerned about African Americans being more infectious than anybody else.”
Melody Goodman, the associate dean for research and an associate professor of biostatistics at the NYU School of Global Public Health, said the best method for a vaccine rollout is a strong educational campaign.
Many people still believe the virus is a hoax and showing a vaccine’s safety profile, side effects, and other positives will get more people to take the vaccine.
“We can make a great vaccine, but if we don’t have the community buy-in—people willing to take that vaccine—we actually don’t have a great vaccine,” Goodman said.
Black-Owned 7-Eleven in Texas Setting Record Sales With Black Girl Magic Wine Brand
Meet Alyson Rae Lawson, the African American owner of a 7-Eleven franchise in Arlington, Texas who is making history and winning big while setting record-high sales. Her store has been selling out bottles of Black Girl Magic wine from McBride Sisters Collection, a brand owned by sisters Robin and Andrea McBride – founders of the largest Black-owned vintner in the country.
Alyson, whose 7-Eleven store services up to 1,000 customers per day, wanted to start selling more products produced by African American entrepreneurs so she decided to place a bulk order from the McBride Sisters Collection. However, she had no idea that their Black Girl Magic wine bottles would become an instant hit.
“It kind of blew out of the water,” Alyson told Fox News.
In fact, it has been so successful that Lawson’s 7-Eleven store is now the highest volume-selling retailer of the brand in the whole country.
“I don’t know that we’ve seen an account quite like this before,” Robin said. “They brought in 10 cases of Black Girl Magic and they sold out the first day. The next day, they brought in 30 cases and they sold out that day. Then 70 cases and it’s sold out immediately. She said I can’t even keep these in stock.”
Both companies are thrilled about their successful partnership and plan to continue working together for years to come.
For more information about McBride Sisters Wine, visit McBrideSisters.com
To support Alyson’s 7-Eleven franchise, visit her store at 100 E Interstate 20. Arlington, Texas 76015.
Coronavirus Wipes Out Three Years of Financial Gains in Three Months: Prudential Report
The coronavirus pandemic has had a devastating effect on Americans’ financial wellness, erasing three years’ worth of financial gains in just three months.
According to a new report, more than half of Americans say their financial health was negatively affected—and people of color, women, younger generations, small businesses, and gig workers have all been disproportionately impacted.
The findings are part of Prudential’s 2020 Financial Wellness Census, released this week. The surveys were conducted in December 2019 and again in May 2020 to compare American’s financial health before and during the coronavirus crisis.
“The COVID-19 pandemic and its economic fallout revealed with shocking speed how fragile financial security is for Americans,” the report states.
“This crisis exposed deep fissures in our public health and economic systems, pervasive racial and social inequity, and how weak our collective immunity is to financial disruption,” John Kalamarides, president of Prudential Group Insurance, elaborated in a press release.
Key findings from Prudential’s Census include:
56% of Black Americans are worried about their financial future
22% of Black Americans saw their household income fall by half or more due to COVID-19
The unemployment rate for Black Americans nearly tripled—from 7% in December 2019, which was near its low since national records began in 1972, to 18% in May 2020
Median household income for Black Americans fell to $45,000 from $55,000; for the general population, it is $75,000
According to the report, Americans are looking for help first and foremost from the federal government. And what they most want is more affordable healthcare, followed by more secure supply chains, more flexible work options, and better government programs to support small businesses.
“COVID was the catalyst that lowered the river and showed the rocks that were the underlying causes—lack of accessibility, lack of emergency savings, and lack of a path toward sustainable financial wealth. This lack of financial resiliency is a threat to our American democracy because without a path toward the middle class that’s available for everybody, our society is at risk,” Kalamarides says in a video.
“The solution is not to have individuals and their families try to bootstrap themselves up. It’s about fixing the systemic challenges and problems and barriers that cause inequity within America.”
Hair Entrepreneur Gives Advice To Salon Customers Returning Amid COVID-19
Due to the COVID-19, or novel coronavirus, pandemic, many businesses have had to adapt to a new normal and adjust to new social distancing restrictions as cities begin to reopen to restart the economy. Hair salons have been uniquely impacted by the public health crisis and have to create new procedures to work around social distancing. Abra McField is the owner of Abra Kadabra Hair & Healing based in Missouri and is one of many hair entrepreneurs becoming acquainted with the new normal.
McField says consumers can expect a lot of new changes implemented when they return to their favorite stylist during the public health crisis. “Waiting in their car until their stylist is ready for them could be one. Seeing as that it is highly recommended not to have over 10 people in one space, this can definitely be a policy they experience if their stylist is running behind,” she says in an email interview with BLACK ENTERPRISE.
“Guests may not be able to sit and wait for the customer while they are being serviced, also. Mandatory masks are another policy. Salons could require consumers not to eat in the salon because that would require them to take their mask off.”
“Temperature check is a big policy because the body could be fighting off an infection before the individuals feel or acquire any type of symptoms or pain. If it is over 99, the consumer cannot be seen. Washing hands prior to being seated is a policy most salons have. Things will definitely be quite different.”
McField explains how there are numerous things consumers can do on their end to protect themselves from contracting the virus during their salon appointment. “I would highly suggest consumers invest in an air purifier. It absorbs dust, bacteria, and all other things floating around in the air that are not good for the body,” she wrote. “There are some air purifier necklaces that are economical and convenient to carry around. Sanitizer and disinfectant wipes are must-haves. Masks are imperative as well.”
Congressman John Lewis, Civil Rights Icon Who Transformed A Nation, Passes Away At 80
One of the nation’s greatest champions of civil rights for more than a half-century, Congressman John Lewis passed Friday. Known as the “Conscience of Congress” for his unyielding battles for racial equality, voting rights, and human rights, he remained a powerful political force even after he announced in December that he had stage 4 pancreatic cancer. He was 80.
His death was confirmed in a statement from House Speaker Nancy Pelosi.
From the most prominent politicians to the constituents he touched, mourners have flooded social media with statements of his lasting impact on the nation and mission to uplift the disadvantaged.
In a statement, former President Barack Obama said: “When I was elected President of the United States, I hugged him on the inauguration stand before I was sworn in and told him that I was only there because of the sacrifices he made.”
Former President Bill Clinton and former Secretary of State Hillary Clinton said in a joint statement: “We lost a giant. John Lewis gave all he had to redeem America’s unmet promise of equality and justice for all, and to create a place for us to build a more perfect union together.”
Lewis served in the House for 17 terms and remained on the front lines—most recently speaking out against police brutality and racial injustice in response to the mass protests that gripped the world after the killing of George Floyd.
Lewis, who received the Earl G. Graves Sr. Vanguard Award at the inaugural BLACK ENTERPRISE Black Men XCEL Summit in 2017, often said he was looking for “good trouble.” As such, he remained one of the fiercest lions in the fight for justice and equality, rallying congressional colleagues in recent years to vote to impeach President Trump, gain unequivocal support on the restoration of key provisions of the Voting Rights Act of 1965, and participate in a sit-in against gun violence.
His lifelong activism was inspired by the Rev. Dr. Martin Luther King Jr. and the slain civil rights leader’s example of nonviolent activism. At the age of 23, the Troy, Alabama, native and son of sharecroppers served as chairman of the Student Nonviolent Coordinating Committee (SNCC), an organization that engaged students to participate in sit-ins and freedom rides during the Civil Rights Movement.
He was also the youngest architect and keynote speaker of the historic 1963 March on Washington, where King delivered his powerful, nation-changing “I Have A Dream” speech. A year later, President Lyndon B. Johnson signed the Civil Rights Act of 1964, putting an end to legal segregation of public institutions and accommodations.
Lewis was also among those who led more than 600 peaceful, orderly demonstrators across the Edmund Pettus Bridge in Selma, Alabama, in 1965 in a protest for voting rights in one of the bastions of Jim Crow. He was wounded in a brutal attack by Alabama state troopers that became known as “Bloody Sunday.” The efforts of King, Lewis, and other civil rights leaders and marchers proved critical in the passage of VRA, which ensured the protection of the franchise for all Americans.
Lewis also served on the original board of advisors of BLACK ENTERPRISE when it was founded in 1970.
Barefoot Wine Creates New Platform To Celebrate Black Women
Barefoot Wine announced it will be launching a new platform called #WeStanForHer, a platform to highlight the collective beauty and power of Black women. The company will be partnering with the New Voices Foundation, a nonprofit organization dedicated to the advancement of WOC entrepreneurs with the unveiling of two new business grants, the COVID-19 Business Recovery Grant for hair salons and the Barefoot Beauty Grants for brands and services, exclusively for Black women-owned businesses.
“New Voices Foundation is excited to partner with Barefoot in support of Black-owned beauty companies which, like many Black small businesses, have been hit particularly hard by the COVID-19 crisis and ongoing economic uncertainty around the country,” says Richelyna Hall, Director of New Voices Foundation in a press statement. “With Barefoot’s support, we can continue to make investments in women of color entrepreneurs through our PACE (Purpose.Access.Capital.Expertise) model with targeted learning, coaching and mentoring opportunities for their businesses.”
In addition to the two grants, the partnership will also include an original conversation series to be launched later on this year called “We Stan For Her,” celebrating Black women sisterhood, self-expression, and beauty.
“Barefoot is committed to listening to and amplifying the voices of Black women, and we are proud to launch We Stan for Her to encourage important conversations and celebrate authentic experiences,” says Shannon Armah, Marketing Strategist Lead for Barefoot in a statement. “Through our partnership with the New Voices Foundation, we will continue our support and highlight the community, making an impact on businesses led by Black women.”
