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The coronavirus pandemic has caused a disparity in many small businesses, and evidence thus far shows it has disproportionately hurt Black-owned small businesses especially.
Robert Fairlie of the University of California Santa Cruz conducted an analysis of government data, stating more than 40% of Black business owners reported they weren’t working back in April, during the beginning of the pandemic, as opposed to only 17% of white small business owners saying the same.
The average American is only one or two paychecks away from being homeless and 1 out of 3 were in debt before the pandemic. Financial literacy is needed now more than ever. Although Black businesses were hit the hardest, there is an explanation for that. A lot of these disparities are deeply rooted in gentrification, “redlining,” predatory lending and lack of access to financial capital.
Imagine playing a game of Monopoly, each player is supposed to start at $1,500, but instead, one starts at $0. Not only that, but they have to go around “the board” and survive with no money. In return, this drastically reduces the chances of winning the game. This example of the game of Monopoly is what happens to the average African American every day.
In this game of life in America for Black people, we started with nothing. Union General William T. Sherman’s plan to give newly-freed families “forty acres and a mule” was among the first promises made and broken to African Americans. Without property, money or education, most did not have a clear or immediate path toward economic independence. The long-term financial implications of this reversal are staggering; by some estimates, the value of 40 acres and a mule for those 40,000 freed slaves would be worth $640 billion today.
Despite this unfulfilled promise, African Americans have repeatedly pulled themselves up by their own "boot straps" by taking the little resources that they had, putting them together and creating businesses, jobs and communities. I am a firm believer that tough times don't last, but tough people do — and that is one thing we are. My suggestion is that we get back to the basics by once again gathering our resources together and creating something for ourselves that will last a lifetime. No matter what obstacle is in our way, we have prevailed.
Despite COVID-19, we don't have a money problem. Last year in 2019, African American spending power was roughly 2 trillion dollars. The only thing that's missing is the unity of pulling our resources together. The word "community" is the word "unity," and without unity, you have no community. I feel we have some of the best minds in this generation of millennials and Generation Z. During times of economic disparity, every household should have multiple streams of income. I would encourage our young millennials and Generation Z to create businesses of their own using social media, the internet, network marketing, products, services and goods.
Although education is key, college does not teach us how to transition out and create a job for ourselves. Most new graduates have trouble finding gainful employment, and many continue to depend on their parents financially after college. This is why self-independence and entrepreneurism are needed like never before. It is important that young people today find their passion, and by finding their passion, they will find their purpose. Identify the things that you are good at and work it as a hobby until you can turn it into your own full-time business. There is nothing wrong with having a job, but a job should be the vehicle funding your passion. The whole idea is to turn your "9 to 5" into you "5 to 9."
I encourage everybody to read books of substance and educate themselves on basic financial principles. We have to start talking about finance in our homes, communities and ministries. Also, listen to podcasts that are encouraging and reach out to your community and network with like-minded people. We need to stop depending on and waiting on one leader, because a dead general cannot lead an army.
Throughout history, we've had so many "greats." Our legacy is royal, which means that nothing can stop us and that we can't lose. Each person must do the work themselves individually; we can come together collectively and win.
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Rory Douglas is a financial educator, high performance life coach and international best selling author. He has over 25 years of experience in the Financial Industry. Rory has a passion of helping people pursue their purpose in life and has a great love for humanity, social justice, technology and artificial intelligence. To learn more, visit his website: RoryDouglas.net
