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Examining the disparity among minority business owners

May 3, 2022
in Business
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Examining the disparity among minority business owners
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Buffalo has its share of beauty supply stores, but none like The Hair Hive on Fillmore Avenue, the only Black-owned store of its kind in the city that carries products most often purchased by African-Americans. Danielle and her sisters, Brianna and Lauren, opened the store two years ago after noticing a lack of representation within establishments that carried products marketed to Black women.

“When we were going into the stores me and my sisters, over the years, we’ve always gone to stores that were male-owned and we just couldn’t identify, and the customer service aspect was missing out of those stores,” Danielle Jackson, The Hair Hive co-owner. “So we felt like we had what it took and what was needed in our community, and we felt that we needed to bring that to our community.”

While a success now, founding the business had its challenges. Aside from a grant from WEDI, there weren’t many funding or mentorship opportunities available. This is reflective of the larger picture of entrepreneurs from minority groups in America who don’t have access to the same resources as their white counterparts.

“That’s always going to be a challenge as an African-American is getting funding because people are not necessarily going to trust that you’re going to make good on their investment,” Danielle said.

Despite the growth of minority populations according to Census data, members of these groups represent only 19% of business owners in the nation. The margin is even narrower for African-Americans, who only own 2% of businesses despite accounting for 13.4% of the population. Gender is a factor here too, with women making up over half of the population but accounting for just under 20% of business owners. In determining where to spend money, being able to relate does make an impact.

“Representation is important because I want to spend my money with people who look like me, whether it’s at a boutique or a Black-owned restaurant, it’s important that we circulate the dollar, the Black dollar, in our own community,” Danielle said.

As forecasters warn of a 2022 recession, America is dependent on consumer dollars and having stores where shoppers can identify with the owners and products could help drive traffic into brick-and-mortar locations as opposed to online shopping.

Not to mention, businesses like The Hair Hive help prepare the next generation of entrepreneurs from underrepresented communities. The Hair Hive Learning Lab teaches youths a variety of skills, from hairstyling to creating business plans, which can help them thrive in whatever industry they pursue. Support is necessary in creating a positive cycle.

“We have to be able to trust one another and we have to be able to take risks with one another and if we can’t do that, we’re not going to be able to move forward; we’re already very behind,” Danielle said.

Changing the scope of opportunities for minority business owners might just start within individual communities, as outward growth of trust and opportunity can help create large-scale equity.

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