Black Buying Power

If one were to list the top five ethnic groups that hold economic power in our country, the African American community may be last on your list. Our community isn’t exactly known for our responsible spending habits and impressive investment portfolios. To be honest, the African American community has a heavy reputation for choosing overindulgence over practicality. We’ve been known to forego basic responsibilities like paying the rent to get our hair done, or buying our infants the hottest soft-bottom Jordan’s over investing in more practical long-term goals. Materialism and consumerism have been engrained into our community for many years, making us the “weakest link” in America’s economic power structure.

Instead, the African American slice on the economic pie lies in our preference—and belief—that we should exist on the opposite end of the cash register. Purchase power, is our secret weapon. Although we do not use our economic power wisely, it is important to understand that the African American community possesses an enormous amount of it. According to a 2012 Nielson report, Black America will possess an estimated $1.1 trillion dollars in economic buying power by 2015. Unfortunately, our dollars circulate one time at the most within our community. This means that we spend almost, if not all of our money at businesses not owned by African Americans. If we’re going to harness our gift of purchase power, we must redirect that trillion dollar bill in a more healthy direction.

The easiest and most obvious solution to our economic dependency is to open and support Black-owned businesses. Yet we’ve all heard the gripes about that, The belief is that Black-owned companies are unprofessional, unorganized and offer a lower quality product than other companies. Many also complain that Black-owned businesses are not visible or simply do not exist in our communities. However valid the argument, we must work harder to find and support these businesses. The continuous support from buyers within the community can lend a hand to higher quality, better product, more efficient service and higher standards.

Kick start your support today! There are many resources available to help you locate Black-owned companies in your area. Try using directories such as Support Black Businesses to find companies near you. There is even an iPhone app called “Around the Way,” which helps you locate African-American owned businesses directly from your phone. And remember, online shopping is your best tool! Many African American business owners cannot afford adequate advertising or a physical storefront, but you can still purchase their wares online.

Start today by making small changes to your purchasing habits, and pretty soon you’ll be buying all Black everything. Hapi Shopping!