Subjected to prejudice, Black communities have faced historically faced biasness in every aspect of life. When it comes to business, there’s lack of proper representation. They also have to face hurdles to access mentorship, knowledge and resources. Not only this, but there are also institutional biases contributing to racial imbalance in credit denial rates. Interest rates are higher for Black and Latinx borrowers. There are many more factors that have acted as a hindrance to the entrepreneurial growth of Blacks.
As per a data by the U.S. Small Business Administration, only 9.5 percent of businesses are represented by Black. National Bureau of Economic Research says that during COVID-19 pandemic, a decline of 41 percent was witnessed in Black ownership in the US.
Shopify’s Help
Shopify, Ottawa-based e-commerce platform has continuously strived to promote entrepreneurship among Blacks. The e-commerce giant also has a directory that allows you to discover 971 Black-owned online stores that are supported by Shopify. Created by Black employees of Shopify, the directory offers customers around the world to easily shop from Blacks every day.
Shopify has also partnered with several companies that work to bring Blacks to the fore. From HOPE One Million New Black Business & New Black Entrepreneurship Initiative (1MBB) to joining hands with TikTok, Shopify is helping open new business opportunities for black communities around the world.
1. HOPE One Million New Black Business & New Black Entrepreneurship Initiative (1MBB)
Shopify’s partnership with Operation Hope aims to create 1 million new businesses owned by Black in the U.S. by 2030. In this, Shopify would provide approximately $130 million of resources over a period of 10 years. The partnership was announced on October 20, 2020. 1MBB will assist aspiring black entrepreneurs with tools for business growth like educational programs, technology, resources and access to capital.
From custom educational programming, tools, resources from logo generators to blog posts with expert tips, Shopify+1MBB focuses to provide resources whenever needed. Operation HOPE will provide resources, training, and guidance irrespective of your entrepreneurial stage. Exclusive courses, virtual workshops and one-on-one coaching will be available. One also gets exclusive opportunity to connect with other Black entrepreneurs via access to the Shopify Build Black Community.
“At Shopify, we believe more independent voices make commerce better for everyone. That’s why we work to break down the barriers to entrepreneurship every day.By collaborating with Operation HOPE and working together on our shared passion for helping underserved communities succeed, we believe we can help unlock even more economic opportunities for Black business owners across the country, leading to greater choices for shoppers everywhere,” said Harley Finkelstein, Shopify President.
“To have Shopify actively supporting the 1MBB Initiative is a true game changer. Working together, we can scale our business creation platform to help underserved communities and enhance economic prosperity across America,” said John Hope Bryant, CEO and Founder of Operation HOPE.
2. Build Black
Build Black is an annual Shopify event aimed to engage with Black entrepreneurs and lend support to their businesses. It offers them a common platform to share their thoughts, insights along with stories of success and lessons learnt during the journey. The event also acts as a catalyst for Black entrepreneurship. According to Shopify, Build Black is an ‘encompassing, educative and engaging conversation series that brings leading, multi-faceted business minds together’.
This year, the event will be held on October 5. Monique Rodriguez, CEO of Mielle Organics, a hair care and beauty brand will join Build Black Virtual 2022. Along with Mielle, this year event will also feature adwoa beauty, Dallas, TX-based hair texture brand and Abeille.
3. FLOURYSH
Shopify has also collaborated with FLOURYSH, an online marketplace, to help shoppers discover black-owned brands. The collaboration will help Black businesses by giving four months of educational programmes, tools and tips by experts to reach the right shoppers, 120-day free trial instead of the usual 2 weeks and access to Shopify’s Build Black Community, where they can interact with other successful Black entrepreneurs. Brands who join Shopify via FLOURYSH will also benefit from an elevated online profile, strategic partnership and potential media exposure.
“Data alone tells you that Shopify is a leader when it comes to eCommerce. Their recent commitment to the Black community, as well as their commitment to doing more in action than talking, made a partnership with them a priority for us. During our initial meetings, we both understood by working together, we would help elevate Black-owned businesses by alleviating some of the common pain points insights have shown to continue being a problem year–over–year,” said FLOURYSH co-founder Steve Canal told AfroTech.
4. Backing Black Businesses
The Coalition to Back Black Businesses is an initiative which has been backed by Shopify among other firms. The multi-year initiative aims to offer support to small Black businesses hit by COVID-19. Small businesses are crucial to the success of communities and strengthening them can help recover Black communities.
The $5,000 grants will also include mentorship, online resources and enhancement grants to provide short-term relief and support long-term success. After the distribution of $5,000 grants each summer, $25,000 enhancement grants will be offered to the most promising ones.
5. TikTok Tie-up
TikTok’s third annual Support Black Businesses accelerator program is partnered and sponsored by Shopify among others. The four weeks program was launched in the wake of George Floyd protests in 2020.
Explaining the motive, TikTok said in a blog post said, accelerator “is designed to elevate the voices of Black-owned businesses on TikTok through exclusive access to resources, benefits, and networking opportunities”. The third annual event aims to support Black-owned businesses in the U.S. that provide digital sales of a product or service and are present on social media (on TikTok or off).
6. AFROPUNK
Shopify collaborated with AFROPUNK to help nine promising Black fashion designers. AFROPUNK x Shopify hosted a fashion show in New York in July 2022 where nine fashion entrepreneurs displayed their creativity on the runway. AFROPUNK joined hands with Black Build Team at Shopify to create the Black Fashion Accelerator, a six-month intensive program designed to help aspiring fashion designers grow in a competitive industry.
This was the first year of the Black Fashion Accelerator program in which the designers were provided access to experts and resources. It also included mentorship from Chris Bevans, senior creative lead at Shopify and a 2017 CFDA/Vogue Fashion Fund finalist.
“Black-owned businesses are underrepresented in the U.S., and Shopify is committed to making entrepreneurship accessible to anyone, anywhere. There is nothing more inspiring to me than to offer Black entrepreneurs the tools and support to get their businesses up and running,” said Amena Agbaje, marketing program lead for Black entrepreneurship at Shopify.
Anita Asante, AFROPUNK’s Head of Global Strategic Partnerships said, “What an absolute privilege it has been to put on this Fashion Accelerator Program in partnership with Shopify and to have an integral part in setting up these exceptional 9 entrepreneurs for future success.”
