Black in Business: How Entrepreneurs of Color Have Triumphed Financially in a Crisis

Black Business Owners Prosper amidst a Pandemic

It came quietly. Then, like an explosion, it started stealing lives and livelihoods. Four months in, it hasn’t let up.  To date, COVID-19 has killed more than 140,000 Americans according to the Johns Hopkins University Coronavirus Research Center.  The Washington Post reports that the pandemic is also to blame for the permanent closure of more than 100,000 small businesses in the United States. Needless to say, it had our undivided attention until Monday May 25th, when something broke through and stole the spotlight.  As the world watched a video of George Floyd taking his last breath, the Black Lives Matter movement gained rare air, and as millions looked for ways to make a difference, small Black-owned businesses got an unprecedented boost. The African American female entrepreneurs behind Rucker Roots, Worthy & Badass, and The Modern Day Black Alphabet have been some of the benefactors of this financial phenomena.

The women are all masters of social media and maintain an impressive presence on all platforms.  Therefore, when newly energized socially conscious consumers went shopping – they were ready to grab the attention.  When the “movement” went virtual and viral, they all saw increased sales with growing calls for support because of hashtags like #BlackOutTuesday and #BuyBlack. 

Sisters Ione and Ellen, Co-Founders of Rucker Roots, have witnessed tremendous growth as people increasingly turn towards Black-owned businesses.

“I would say we’ve had a 100% jump in revenue,” says Ione Rucker Jamison, co-owner of Rucker Roots Hair Care.  The Black-owned company was started by Ione and her sister Ellen in 2014, with a unique style of branding that encompasses the spectrum of Black hair textures, providing premium products using natural ingredients. Justine Wiggins, owner of handmade jewelry company Worthy and Badass, saw similar success recently after being in business for 7 years.  “I’m proud to say I had my first $10,000 month in June,” she says.  

It seems the monetary ripple effects flowed whether a business was established or a startup.  During her time in quarantine, teenager Arial Robinson created a children’s book with photos and illustrations called The Modern Day Black Alphabet.  Because of her unique idea, she was spotlighted on YouTube’s Instagram page for International Business Day (June 27) and sold more than 800 copies of her book without professional advertisements.

In the midst of the coronavirus crisis, the businesses have not been completely immune. “We had some trouble with the manufacturer of our bottles, they decided to use most of the bottles we use for our products for hand-sanitizer since the demand was so high,” says Ellen Rucker Sellers. However, tremendous growth outweighed any setbacks.  Their impressive earnings gained the company a feature in Forbes for the month of June among 75 other Black-owned businesses to support.

These three positive accounts seem to highlight an abstract of financial success born after, and still in the midst of, so much tragedy.  While any business owner loves to see a return after pouring their heart and soul into a company, this scenario can leave one with internal conflict and feel bittersweet. “The death of George Floyd and the death of Ahmaud Arbery affected me in a deep place; the growth in my sales really created a division in how I felt,” says Wiggins. “I’d rather see those men alive and with their families.”

Consumers Support the Black Lives Matter Movement through Buying Black 

The death of George Floyd has sparked a reinvigorated movement for justice reform and unprecedented support for Black-owned businesses. Black female entrepreneurs Arial Robinson, Justine Wiggins, Ione Rucker Jamison, and Ellen Rucker Sellers have seen their small businesses reach record success in recent months, unlike more than 100,000 other small businesses that have closed for good because of the coronavirus pandemic.  It would seem that it took the death of a Black man in such a public and violent way for consumers, even many Black consumers, to support Black owned businesses for the first time.  Can these businesses capitalize on this moment and create loyal customers for the long haul? How will these business owners give back to the community?  The minority women behind three companies based in Charlotte, NC are positioned to succeed and have always had a plan.

According to the non-profit, Black Star Project, a dollar circulates 6 hours in the Black community; 17 days in the white community; 20 days in the Jewish community; and 30 days in the Asian community.  But for now, recent months would suggest that almost everyone is on board with trying to spend their money with “Black-owned.”

Forbes 30 under 30 scholar Arial Robinson has been promoting Black representation with The Modern Black Alphabet and by reinvesting her profits in the community. (Source: Medium)

Nearly 70% of all Black-owned businesses only have one to four employees, and 45% have annual revenues of less than $100,000. But with only three employees, Rucker Roots’ revenue almost doubled that value.  Wiggins is a one-woman enterprise.  Her jewelry design company, Worthy and Badass, saw its first $10,000 month in June, and teen entrepreneur Arial Robinson saw record sales with 800 copies of her children’s book, The Modern Day Black Alphabet, sold in one day. The women all say they have always provided quality products and operated at a high level while investing in the community, but they won’t take this opportunity —and sampling from so many new consumers— for granted.

“Hopefully as Black Americans we will one day be on the same playing field,” says Ellen Rucker Sellers. “But for now, we are doing what we can to make a difference.”

They say they have all been authentic, and always provided help for others.  Therefore, it wasn’t something they had to manufacture in the midst of all this new attention.  For seven years, the Rucker sisters have supported first generation college students through the Rucker Education Scholarship Fund. Robinson is also uplifting young people by donating copies of her book to low income families, expectant mothers, and daycare centers along with sharing some of her profits with community organizations’ GLSEN and CLT Uprising.

“Now that I’ve gotten older, I’ve started to realize how much Black representation lacks in lots of different media platforms, I realized when I was growing up I didn’t really see a brown girl in this space, or I didn’t see anybody talk about it,” Robinson says.  She hopes that the impact of her investment in young minds will be generational and transformative.

It’s evident to each of the entrepreneurs that something must change.  However, their strategy and principles that were already working will not change.  When the spotlight turned on them the past few months, they had a standard of quality and had already been pouring love into their communities. They feel it shows that their businesses are deserving of loyal customers regardless of the social and political climate of our nation.

“It’s hard to admit that we’re jaded; these situations bring change and that change sort of fizzles,” says Wiggins.  “But I believe we will see a long-term difference when we see long term goals created.”

Thumbnail Credits: The Atlanta Voice