Are Black-owned businesses in Delaware being left behind?
Over the past few months, coronavirus and social justice demonstrations have highlighted the issues and disparities impacting black communities in health, criminal justice, and much more.
One area that should also be addressed is the inequality in business.
Just a few months ago, the requirements for the Payroll Protection Program (PPP) loans from the U.S. Small Business Association made it difficult for many to receive loans, but it was especially tough for minority-owned businesses. Combine that with the fact that Delaware was second to last in the nation in the first round of PPP loans issued, and Delaware’s black-owned businesses were left in the dust during the pandemic.
Coronavirus only worsened the landscape—it didn’t create it.
According to 2019 Census data, there are about 224,000 African Americans in Delaware, but only 553 black-owned businesses. The First State ranks 33rd in the nation for black owned business success.
Part of the issue is a lack of resources.
According to Guidant Financial, a lack of capital and cash flow is the biggest challenge for black small business owners. While those are the same problems most small business owners face, fewer African-American small businesses are approved for financing, and when they are, it is often for less money and with higher interest rates.
Delaware’s business resource page only lists one option specifically for black-owned businesses: the African American Chamber of Commerce. The AACC is actually regional and operates out of Philadelphia, serving Delaware, Pennsylvania, and New Jersey. Who in Delaware is fighting for Delaware’s black business owners?
Currently, only community level groups offer any support.
Among other issues, high business taxes and long wait times for permit approvals make it difficult for any entrepreneur to make it in Delaware. Add on the additional barriers for African Americans, and the cause of our low success rate for black-owned businesses becomes clear.
Better resources and advocacy for all businesses undoubtedly serves minority owned businesses as well. Lower business taxes, less regulations, and faster approvals from less bureaucracy would strengthen our business climate across the board.
However, when we have a group that clearly falls behind in the state and in the nation in their success, perhaps we should take the time to focus on their specific needs. Sure, helping all businesses is a step in the right direction for a lot of entities, and we at A Better Delaware have been advocating for that.
It is time to take steps to advocate and work for those who we have let fall further behind. It is time for Delaware to do better for its businesses—especially its black owned businesses.
If you are a minority business owner or entrepreneur, we want to hear from you. It is time someone asked what could be done so that our elected officials and communities could better serve those gaps.
Please email firstname.lastname@example.org to help us in the effort to create A Better Delaware for everyone.