(TriceEdneyWire.com)—We hear a great deal of discussion about the percentage of money Blacks spend with Black businesses versus how much we spend with White businesses–and others as well. It has been said that 90 percent or more of Black dollars are spent at non-Black businesses. Obviously, that leaves about 10 percent for our businesses. What are we getting for that 90 percent? Blacks must drastically change our spending habits and/or leverage what we do spend.
The average annual revenue (sales) for Black owned businesses without employees is $58,000 and for those with paid employees it is $948,000, both of which are much lower than other so-called “Minority Groups.”
A report published by the U.S. Small Business Administration, titled, “Minority Business Ownership: Data from the 2012 Survey of Business Owners” by Michael McManus, Regulatory Economist, had this to say about Sales Disparities:
“Evaluating disparities using per-firm sales average shows the stark difference between minority and nonminority firms. It also highlights key variations between minority groups. For example, [Black]-owned firms average about $58,000 in sales per firm, while Hispanic firms generate two and a half times this amount; Asian-owned firms, six times as much; and non minority-owned firms over nine times this amount.”
One can reasonably extrapolate a couple of things from that point: Black businesses must grow to the point of being able to hire employees; and Black businesses need a great deal more support–from Black consumers as well as other consumers–to reach parity.