Celebrating Black-Owned Businesses.
At Thumbtack we’re committed to helping all business owners thrive. Seeing small businesses positively impact their communities is one of the most fulfilling facets of our work. And we recognize the critical importance of supporting the development and growth of minority-owned small businesses and entrepreneurs.
Small business ownership has afforded many Black Americans the opportunity to write their own narratives. However, because Black business owners have been less likely to acquire financing and loans, the success of Black businesses is highly dependent on community support. In recognition of Black History Month, we are sharing a look into the experiences of Black small business owners in starting, running, and growing their business. In doing so, we learned more about our communities and the independent professionals that are helping to build stronger local economies all across the country.
Historically, being an entrepreneur was more of a necessity than it was a choice. During Jim Crow, the era between 1870–1965 (post-slavery until the end of the civil rights era), systemic racism and segregation prevented many Black Americans from both education and career opportunities. Many turned to entrepreneurship to support their families or in pursuit of “the American dream” or a combination of both. Though we have obviously come a long way, the effects of systemic racism still create hurdles for many, especially small business owners, who are the backbone of the Black community.
Finding Community Support
Starting a business is no small feat and the support of your local community is crucial to the success of any new business. Across the country, 61% of Black pros reported that they found it easy to start their business in their local community.
And not only was starting their business relatively easy, Black small business owners also report feeling set up for success. 83% of Black small business owners feel there is enough economic opportunity for their business to thrive. During the pandemic, more than one in three Black pros say their local community has rallied around them to proactively support their business during difficult times — be it through donations, increased spending at their business, or offering to volunteer.
The best way to support Black-owned businesses in your community is to make a conscious effort to find Black-owned businesses that offer the products and services that you regularly use or buy.
The success of Black-owned businesses is crucial in paving the way for future generations of entrepreneurs and business owners throughout communities. For Simon Kellogg, owner of Divine Real Estate, “Representation is very important. Some research shows that nearly 70% of humans are visual. Building a Black-owned business shows my daughter, other kids, and even adults that look like me that they are the authors of their own destiny.”
Making Dreams a Reality
41% of Black-owned businesses were started within the past two years. And a variety of motivations were behind their inception — from being your own boss to increased earning potential as well as pursuing a passion. The majority of Black professionals — 60% — were motivated by the ability to be their own boss when starting their business. 53% were motivated to start their business due to increased earning potential, 52% by the ability to pursue their passion, and 49% were motivated by schedule flexibility.
Prior to starting their business on Thumbtack, 75% of Black small business owners worked for someone else. Now, more than half report their business is their primary source of income.
For Candace Davenport-Raines, owner of OCD, LLC (Organize, Contain, Declutter), her favorite thing about being a business owner is being able to set her own rules for how her company engages with and serves their clients. “Being a Black-owned business owner gives me tons of pride. Being a Black, woman-owned business owner is a bonus. I am part of an elite group that changes lives, changes the dynamics and demonstrates that we can stand shoulder to shoulder with others in our respective industries.”
Making Commitments
Supporting small businesses in your community is important and makes a difference. At Thumbtack, we’re committed to ensuring that Black-owned businesses have the same opportunities to market and grow their businesses on our platform. We accomplish this by mitigating bias on the platform, upholding our strict non-discrimination policies and ensuring that we provide high-touch service and support to pros to ensure that they are successful on the platform.
We all play a role in helping uplift Black-owned businesses across the country. And we encourage you to celebrate Black History Month by learning about and hiring the Black-owned businesses in your neighborhood.
Survey data methodology: Thumbtack conducted a survey of the general population from 6/7/2021 to 7/26/2021 of 3648 U.S. adults aged 18 or higher with a margin of error of +/- 2%. Of the total respondents, 551 respondents identified as Black (15% of the overall sample).
