- Groupon and National Black Chamber of Commerce survey of more
than 400 Black small business owners found that 75% have seen an
increase in business since protests sparked by the death of George
Floyd began
- 80% said they faced more challenges launching their businesses
due to their race
- 74% said they’ve had fewer opportunities due to a lack of
capital investment and resources targeted towards Black
communities
- 76% of Black-owned businesses said they were negatively
impacted by COVID-19, but only 5% of those that applied for
Paycheck Protection Program loan received one
August is National Black Business Month, a time to recognize and
celebrate the important contributions from Black-owned businesses.
As we approach Black Business Month, more people are looking for
ways to support Black communities, and according to a new survey,
75% of Black small businesses have seen an uptick in customers
since the beginning of June. While the increase in business has
been welcome, particularly in light of the devastating economic
impact of COVID-19, the study also reinforced the inequities that
Black entrepreneurs continue to face.
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the full release here:
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A Groupon and National Black Chamber of
Commerce survey of more than 400 Black small business owners found
that 75% have seen an increase in business since protests sparked
by the death of George Floyd began. (Graphic: Business Wire)
The poll, commissioned by Groupon (NASDAQ: GRPN) and the
National Black Chamber of Commerce, surveyed more than 400 Black
small business owners to better understand the challenges they
face, why they decided to become entrepreneurs, how they achieved
success and the most important issues they want to see addressed in
the 2020 presidential election. Additionally, Groupon is announcing
a month-long series of virtual events hosted in partnership with
its home state, the state of Illinois, to shine a light on
challenges faced and to find ways to support Black-owned businesses
across the country.
“We’re thrilled to celebrate Black Business Month as this
community has been disproportionately impacted by COVID-19 and
traditionally suffers from a lack of access to adequate capital and
resources,” said Aaron Cooper, Interim CEO, Groupon. “One of the
many ways that we’re translating our support for Black Lives Matter
into meaningful action is by highlighting and championing the
success of Black-owned businesses and looking for more ways to
connect them to our diverse customer base. We hope that everyone
will join us in supporting the more than 2 million Black-owned
businesses in this country at a time when they need us the
most.”
Overcoming Challenges
According to the business owners who participated in the survey,
80% said they faced more challenges launching their businesses due
to their race. Nearly 60% of respondents said they experienced some
form of racism or bias, and half of the survey participants said
that the government stood in their way when it came to opening
their businesses. Approximately three out of four Black business
owners said that they’ve had fewer chances due to a lack of capital
investment and resources.
Disproportionate COVID Impact
The disparities between Black and white-owned businesses were
highlighted by the devastating economic impact of COVID-19. While
76% of Black-owned businesses said they were negatively impacted by
COVID-19, only 5% of those that applied for a Paycheck Protection
Program loan received one. According to the National Bureau of
Economic Research (NBER), as many as 41% of Black small businesses
were forced to close permanently due to COVID-19 compared to just
17% of white-owned businesses.
Becoming the Boss
Seventy-nine percent of survey respondents said they’re more
proud than ever to be a Black business owner. Black business owners
said that pursuing their passions, gaining more control over their
futures, being their own bosses, having flexible schedules and
helping their local communities were the top five reasons why they
went into business for themselves.
Achieving Success
Nearly half (47%) of the survey respondents said it took between
three and six years for their businesses to get off the ground and
become successful. While 84% said they were held to a different
standard than other ethnicities, putting in hard work, taking pride
in the quality of their product or service, having an innovative
business idea, hiring the right people and building strong
community relationships were identified as some of the keys to
their success.
Making Their Voices Heard in the 2020 Election
Most Black business owners, 74%, are hopeful about the future of
race relations in America, but they still want to see the issue
addressed by the 2020 U.S. presidential candidates. The top issues
that Black business owners want to see addressed in the 2020
campaign are race relations, small business support, police
brutality, the economy and healthcare.
Taking Action
Groupon, which has seen searches for Black-owned businesses
increase more than 300% on mobile since early June, is urging
consumers to celebrate National Black Business Month by supporting
businesses in their local communities as well as by making a
donation to help provide new Black entrepreneurs with much needed
access to capital. The company has a curated collection of hundreds
of Black-owned businesses across the United States and will be
featuring these merchants across its mobile, online and social
channels throughout the month of August. In addition, the company
has partnered with Kiva.org––a renowned crowdfunding platform––to
raise funds from consumers in support of a Black-owned business
fund that will help create opportunity and unlock investment
capital for Black merchants across the U.S.
Throughout the month, Groupon will continue its #PassTheMic
social media campaign where the company has turned over its
collective U.S. audience of 22 million followers to amplify and
uplift Black voices and merchant success stories.
To help bring more attention to the disparities Black
entrepreneurs face and resources available to help their businesses
succeed, the company is partnering with the Illinois Department of
Commerce and Economic Opportunity (DCEO) to offer three virtual
panel discussions for merchants during the month of August that
bring together a national audience of government officials and
Black business community leaders.
“Across Illinois, our Black-owned businesses contribute to the
vibrancy and success of our communities – yet we know that they
continue to face long-standing obstacles to running their
businesses, all made even more challenging by COVID-19,” said
Acting DCEO Director Michael Negron. “To protect our Black
businesses, Illinois has continued to deploy resources to lift up
businesses hit hardest during the crisis, and to continue leveling
the playing field for Black businesses. On behalf of Governor
Pritzker, we thank Groupon for advancing the conversation around
how to remove barriers and better support Black businesses in
Illinois and around the country.”
The three panel discussions will be held on the following
dates:
- Doing Business with Government: Fostering an inclusive
and competitive business environment that will help Black business
enterprises increase their capacity, grow revenue, and enhance
credentials. (August 13)
- Black Business Lending––Accessing Capital & Tax
Incentives: How Black businesses can access financial resources
and tax incentives to scale and grow a sustainable business that
increases overall economic opportunity and growth in communities of
color. (August 20)
- Navigating COVID-19 and Civil Unrest––Federal and State
Financial Resources for Black Businesses: How Black businesses
can take advantage of federal/state COVID-19 grant/loan relief
programs and rebuild damaged businesses post-civil unrest.
(August 27)
For more information about the Groupon and Illinois Department
of Commerce and Economic Opportunity virtual panels, please visit
gr.pn/nbbmmerchant.
For more information on joining the National Black Chamber of
Commerce, please visit
https://www.nationalbcc.org/join-us-16261/membership-benefits.
To find Black-owned businesses that you can support in your
community, please visit gr.pn/celebrate.
About the National Black Chamber of Commerce
The National Black Chamber of Commerce® was incorporated in
Washington, DC in March 1993. The NBCC is a nonprofit, nonpartisan,
nonsectarian organization dedicated to the economic empowerment of
African American communities. In essence, the NBCC is on the
leading edge of educating and training Black communities on the
need to participate vigorously in this great capitalistic society
known as America. The NBCC reaches 100,000 Black owned businesses.
There are 2.6 million Black-owned businesses in the United States.
Black businesses account for over $138 billion in revenue each year
according to the US Bureau of Census. The National Black Chamber of
Commerce® is dedicated to economically empowering and sustaining
African American communities through entrepreneurship and
capitalistic activity within the United States.
About Groupon
Groupon (NASDAQ: GRPN) is an experiences marketplace that brings
people more ways to get the most out of their city or wherever they
may be. By enabling real-time mobile commerce across local
businesses, live events and travel destinations, Groupon helps
people find and discover experiences––big and small, new and
familiar––that make for a full, fun and rewarding life. Groupon
helps local businesses grow and strengthen customer
relationships––resulting in strong, vibrant communities. To learn
more about Groupon’s community-building efforts, please visit
community.groupon.com.
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Groupon Nick Halliwell nhalliwell@groupon.com
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