Are Black Businesses Recession Ready?

Black businesses were hit particularly hard when the pandemic hit in 2020, but they rebounded relatively strongly in 2021 compared to other ethnic groups, studies show.

As the chances of another recession increase, how would black-owned businesses fare? What do they do to prepare? Will an outpouring of support like the Buy Black movement hold up during an economic storm?

For(bes) the Culture checked this thread with several black business owners and experts.

One was Kevin Cohey, CEO of OneUnited Bank, which bills itself as the largest black-owned bank. He said Black America is in a better position to weather a downturn now than in the past. The economic power of this demographic will help determine the fate of many black-owned businesses, especially those like OneUnited. “We’re moving further and further away from the old model of … the last hired and the first fired,” Cohey said of Black America.

But there may still be some vulnerabilities for black business owners, said Robert Fairley, a professor at the University of California, Santa Cruz. “If we do go into a recession, I predict it will be bad for black-owned businesses,” Fairley says Forbes. He added that many such businesses have already struggled with the pandemic “and don’t have the large cash reserves, owner wealth or access to bank credit to weather another recession.” Read more here.

No matter the economic climate, it pays to be your true self. This is just one of the lessons that emerged For (bes) cultureQueens of Culture event last week. (Shoutout to Raquel “Rocky” Harris for holding it down as host!) You owe it to yourself to check out some of the highlights and coverage of the story.

We’d be remiss if we didn’t pay attention to some of the HBCU students interning at Forbes this summer: Dareonna Davis, Ariana Griffin, and Ariana Johnson. They are members of this year’s Forbes HBCU Journalist Program (formerly the Forbes Scholars Program). Check out their latest stories below:

Black women are less likely to receive quality feedback at work. This affects their earnings and leadership opportunities over time

Digital therapy startup Cara Care has raised $7 million to fuel expansion

Stay!


Are Black Businesses Ready for Another Recession? Although the ranks of black business owners have rebounded quite strongly since the 2020 recession, many still have some of the vulnerabilities that existed before, such as low cash reserves and difficult access to credit compared to other groups.


Why Forbes’ culture queens say authenticity is your superpower Culture’s For(bes) Raquel “Rocky” Harris, from left, sat with celebrity publicist Yvette Noel-Schure, Sunny Hostin of ABC’s “The View,” Recording Academy co-president Valeisha Butterfield Jones and longtime Hillary Clinton aide Huma Abdein for a candid conversation about what it means to be a pioneer as a woman of color.


College Sports’ ‘King of the NIL’ Collects Endorsement Deals at Small HBCUNorfolk State’s Rayquan Smith has partnered with 69 brands and collected five figures in the 12 months since the NCAA began allowing athlete sponsorships.


Patrick Mahomes, Bubba Wallace Join A16z Cultural Leadership Fund Aiming To Increase Black WealthNFL star Patrick Mahomes and Nascar driver Bubba Wallace have joined a growing list of athletes investing in a third fund led by venture capital firm Andreessen Horowitz.


From our contributors

Magic Johnson Invests in Metaverse Gaming Mashup Sports, eSports, Games, Web3

Opal Lee, Juneteenth grandmother, shares the importance of using your voice to activate change

Polaris Slingshot joins forces with Black Girls Ride to diversify the automotive industry

Black DadPreneurs Highlight Fatherhood and Entrepreneurship With New Podcast “Parents Make Profits” on the HubSpot Podcast Network

The eyes that watch Rwanda

Prominent Biden-appointed attorney Corey Minor Smith speaks about the importance of mental health


To see more, subscribe to our newsletter here.

Leave a Comment

Your email address will not be published.