Supporting Black-Owned Businesses as Climate Action

It’s easy to understand why sustainable products like recycled paper towels and reusable containers are better for the planet. However, you may not know that another way to shop sustainably is to support communities most affected by the climate crisis. 

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While this concept extends beyond the Black community in America, this article breaks down why buying from Black-owned businesses specifically has the power to make systematic changes that favor environmental and social wellness.

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The Creation of Wealth Disparity in the U.S.

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For most of America’s existence, Black communities were intentionally excluded from business ownership. Even though the legal barriers were removed, Black business owners face many obstacles that White business owners do not.

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In the capitalist theory of economics, first-mover advantage refers to the benefits gained by the first company to enter a market or introduce a new product or service. Just as being the first player in a game of chess gives you certain advantages, historical factors have put White people in America at an advantage when it comes to wealth accumulation and financial opportunities. When Black-owned businesses were recognized by the American legal structure during the Reconstruction Era (1863-77), the markets were already dominated by White-owned brands with developed infrastructure, supply chains, and customer bases. The White-owned businesses had the first-mover advantage. Systemic racism, foundational in the history of the United States, has created an uneven economic playing field. This has had persistent effects on 

Black people’s ability to accumulate wealth and achieve the same degree of financial success as their White counterparts.

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 In regards to building top-performing products, Black business owners have been trying to win a race when the competition is starting from halfway down the track. Compounding this, centuries of systemic racism have made it incredibly difficult to build up the type of personal or generational wealth that can be vital when starting a business. Millionaires and billionaires are not built in a single lifetime. Having wealth in your personal circle of friends, family, and mentors is instrumental to launching a successful company. Achieving racial equity in America’s current economic system is a far-reaching goal. Radical-for-our-time policies such as wealth redistribution, increasing financial literacy, and truly equal employment opportunities are difficult to enact in the current structure. 

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How does Racial Equity in the Marketplace relate to Sustainability?

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Money spent at Black-owned businesses has two-fold benefits – It enhances community resilience and reduces socioeconomic disparities. Both of these benefits enhance a community's ability to adapt to the impacts of climate change.

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Community resilience is a people’s ability to recover from adverse situations. Consider the wealthy neighborhood when a hurricane hits. Wealthy neighbors are more likely to have generator power to share, keeping lights on and refrigerators running in their locality. This is an example of community resilience. Fostering resilience in vulnerable communities evens the burden of environmental degradation. By infusing profitable institutions into underserved communities, community-led projects can be built without needing to rely on outside programs. Empowering communities from within is more impactful than relying on well-intentioned outsiders. Just as growing your own food promotes food sovereignty as a form of self-reliance, supporting Black communities in funding programs for each other aligns with the central ethos of the climate movement: self-sufficiency.

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It's important to recognize that financial resources directly translate into power within the American government and influence decision-making processes. The growing body of literature on Environmental Justice shows a critical link between socioeconomic status and environmental injustices. In America, where money holds significant influence over government policies, it is evident that marginalized communities facing economic hardships bear the brunt of environmental degradation. In the United States, around 20% of Black Americans live below the poverty line, compared to 8% of White Americans.

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Let's imagine a scenario where the Flint water crisis affected an affluent population. Affluent individuals have the resources and connections to navigate such a crisis more effectively. They have affluent families who could provide temporary shelter during the peak of the crisis. They have affluent networks that could donate more water and essential supplies. Affluent individuals also have access to people in government and positions of power, which could have facilitated better preparation for or even prevention of the crisis itself. Channeling spending towards Black-owned brands helps tip the scales so that Black communities have more power in our current economic system and in our government. This is a long-sighted, sustainable change necessary to foster a just and equitable culture.

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Wealth Redistribution Creates Climate Justice 

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As we move forward in the climate movement, we have to think about redistributing wealth as a major way to create climate justice. The central argument in this article can be made repeatedly comparing White Americans and any ethnic minority. It is still relevant on a global scale, comparing European nations with others. Money spent at Black-owned businesses is more likely to be going to someone who will use it to make their community better on their own terms. You can try shopping at a farmer’s or artist’s market in your city’s predominantly Black neighborhood. If that is not an option for you, a simple internet search will lead you to multitudes of Black-owned brands, some even making products with planetary wellness in mind. 

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Achieving racial equity in the marketplace is crucial for building resilient communities. It means addressing systemic disparities, empowering marginalized communities, and providing them with the resources and support needed to adapt to the challenges posed by climate change. Through these efforts, we can create a sustainable society that ensures no community is disproportionately burdened by environmental crises like Flint and enables all individuals to thrive. A healthy society and a healthy environment go hand in hand.