Black Business Trends

Recently, I’ve been thinking about the types of businesses that Black people start. First, I started with the entrepreneurs in my own life. I know 4 Black people who own a business. Three are in the t-shirt business, and one has her own mortgage brokerage business. Many of these T-shirts are fulfilled by online companies that do the fulfillment for you. So this is the kind of business that you can do without any extra staff.

These are businesses that you can run on your own.

I wanted to find out how many Black people are starting a business that requires a secretary and a marketing department and a sales department and a team. By that, I mean the kind of business that you can scale to a multi-million dollar business.

So I set about to find out what Black entrepreneurs are working on these days.

My first step was to do some research on the Black Businesses that I have been told to support in the wake of the death of George Floyd.

I decided to research 200 Black businesses.

My list of 200 Black Businesses to support was compiled from the links below.

https://vimeo.com/blog/post/black-owned-businesses-shop-support/
https://www.buzzfeed.com/kaylaboyd/just-cool-products-from-black-owned-businesses-93u24mbaum
https://www.forbes.com/sites/elisabethbrier/2020/06/05/75-black-owned-businesses-to-support/#4245d8df3814
https://www.buzzfeed.com/jamedjackson/black-owned-fashion-brands-to-know
https://www.buzzfeed.com/hannahmarder/black-owned-online-businesses
https://www.buzzfeed.com/treyegreen/black-owned-apparel-companies-shopping
https://www.buzzfeednews.com/article/ariannarebolini/black-bookstores-black-authors-books
https://www.buzzfeed.com/morganmurrell/black-owned-businesses-shop

I compiled my list of 200, and this is what I found.

Art

1

Arts Lessons

1

Automobile Sales

1

Author

2

Cleaning Products

1

Cosmetics

23

Fashion

71

Financial Services

9

Food and Beverage

13

Genealogy

1

Groceries or Supermarket

1

Hair Care Products

13

Health Product

5

Hotels

1

Human Resources

2

Interior Decorating

8

Jewellry

8

Marketing

1

Media and Magazines

7

Medical

2

Online Bookstore

1

Pet Care

1

Retail Bookstore

11

Restaurants

3

Retail Store

8

Salon

1

Software SAAS/App

1

Transportation

1

Vintage

1

Yoga

1

If you want to see that visually with a pie chart, it looks like this. To make the chart easier to read, several items that were .5% have been left off. Any item on the above list that had a count of 1 was .5%.

 

So, it appears that Fashion is a very popular category with Black Entrepreneurs. That was me trying to be diplomatic. Let me go back and say what I really mean. After I finished compiling this list, I started to get the impression that Black people like to look good and build businesses around looking good.

After I finished this list of 200, I decided to look at what the world’s wealthiest people are creating.

Jeff Bezos

Amazon

Retail and Technology

Bill Gates

Microsoft

Technology

Bernard Arnault

Louis Vuitton and others

Fashion

Warren Buffet

Berkshire Hathaway

Investments – Financial Services

Larry Ellison

Oracle

Technology

Amancio Ortego

Zara

Fashion

Mark Zuckerberg

Facebook

Technology

Sam Walton

Walmart

Retail Store

Jim Walton

Walmart

Retail Store

Alice Walton

Walmart

Retail Store

Rob Walton

Walmart

Retail Store

https://www.forbes.com/stories/ten-richest-people-in-the-world-2020/

4/11 on the list are in the same family. 4 of the remaining 7 are in the technology field.

I’m a little concerned that so many Black People are creating fashion and beauty products at this point in my research.

I then compiled a list of ten of the richest Black people in the world.

Aliko Dangote  —   Manufacturing

Mike Adenuga  —   Telecom

Robert Smith  —   Investments/Financial Services

David Steward  —  Telecommunications Networks

Abdul Samad Rabiu  —  Manufacturing and Agriculture

Ophrah Winfrey   —  Media

Strive Masiyiwa  —   Telecommunications, Technology and Renewable Energy

Patrice Motsepe  —   Mining

Michael Jordan  —   Sports and Investments

Foorunsho Alakija  —   Fashion, Oil, Real Estate and Printing

https://en.wikipedia.org/wiki/Black_billionaires

Of the ten richest Black People, only one made that money in Fashion and only partially.

Next, I compiled a list of the top revenue-generating companies in the world.
This is what they produce.

Automotive 14%

7

14.00%

Commodities 4%

2

4.00%

Conglomerate6%

3

6.00%

Construction 2%

1

2.00%

Electricity 2%

1

2.00%

Electronics 6%

3

6.00%

Financials 20%

10

20.00%

Healthcare 6%

3

6.00%

Holding Company 2%

1

2.00%

Internet 2%

1

2.00%

Oil and Gas 20%

10

20.00%

Pharmaceutical 4%

2

4.00%

Retail 10%

5

10.00%

Telecommunications 2%

1

2.00%

https://en.wikipedia.org/wiki/List_of_largest_companies_by_revenue

Nobody on the high revenue list produces Fashion.

Right about now, you may be thinking that I have something against Fashion. I don’t. I love both Fashion and beauty products.  I’m just trying to find out where the power lies.

To be fair, I went to look for some tech founders. I found 38 Black Tech Founders.

They are creating products in the following categories:

  • AI
  • AI/Fraud
  • Beauty
  • Capital
  • Consumer Products
  • Esports
  • Event Management
  • Food
  • Health
  • Home Management
  • Human Resources
  • Internet of Things
  • Media
  • Online Trivia Games
  • Revenue Mgmnt
  • SAAS
  • SAAS/Accounting
  • SAAS/Bitcoin
  • SAAS/CAPITAL
  • SAAS/Cryptocurrency
  • SAAS/Data Science
  • SAAS/Payments
  • Social Media
  • Training
  • Virtual Reality

https://www.instagram.com/blacktechfounders/

I must also add to this list, my nephew, a fashion designer who is studying a little python on the side and thinking about a way to solve the very large problem of producing clothing in a way that is both sustainable and ethical.

I am excited to see the diverse number of solutions being created by Black Tech Entrepreneurs.

If you are a Black person reading this, and you are working on a tech business, please stop by my house for a piece of pie.

Emphasis on the word pie.
What an excellent segue opportunity.
Speaking of pie, let’s discuss how we can get our fair share of the pie by shifting away from businesses that are easy and convenient to start and moving towards starting hard businesses.

-Building a software program or coding an app that doesn’t crash is hard.
-Mining is hard.
-Solving financial problems for people is hard.
-Neural Networks and other facets of AI are hard.

Let us have a conversation about doing things that are hard.

That is where the power lies.

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About the Author: bsasangelstaff

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