By Chris Godfrey
August is National Black Business Month in the United States, a time to recognize and uplift Black-owned businesses. This year’s celebration carries new urgency. Since early 2025, changes under the current administration, including the overturning of diversity, equity, and inclusion (DEI) initiatives, have raised alarms in Black business communities. In January, a White House statement justified rolling back DEI programs by claiming they “create… prejudicial hostility” instead of reducing bias. This shift emboldened some major companies to scale back their own diversity commitments. Notably, retail giant Target announced plans to end its diversity goals that advanced Black employee representation and amplified Black-owned brands. For many, these developments threaten to reverse hard-won progress, making it more critical than ever to support Black-owned businesses at local and national levels.
Origins of National Black Business Month
National Black Business Month itself was born out of a desire to drive positive change. The observance was co-founded in 2004 by historian John William Templeton and engineer Frederick E. Jordan, two entrepreneurs who understood the challenges Black business owners face. Jordan, who had struggled to secure financing for his own company, teamed up with Templeton with a shared goal: to “drive policy change affecting African American entrepreneurs” and seek greater equity and inclusion. What began as an idea to influence policy and empower Black business owners has grown into an annual, month-long celebration each August. It’s a time to acknowledge the achievements of Black entrepreneurs, often accomplished against the odds, and to encourage everyone to invest in and support Black-owned businesses.
This focus on celebration and support is rooted in history. Black Americans have been launching businesses since at least the late 18th century, and despite enslavement and segregation, a “golden age” of Black entrepreneurship flourished in the early 20th century. By the early 2000s, Black-owned firms had grown to over a million nationwide. National Black Business Month builds on that legacy, reminding us that behind every Black-owned enterprise is a story of innovation, resilience, and contribution to the economy.
The Economic Impact and Importance of Black-Owned Businesses
Today, Black-owned businesses are a vital part of the U.S. economy. According to recent data, there are roughly 3.12 million Black-owned businesses in the United States, which collectively employ about 1.18 million people and generate $133.7 billion in annual sales. These enterprises create jobs and opportunities, and many are pillars in their local communities. In New York City alone, one of the nation’s most diverse markets, Black entrepreneurs are driving a rise in employment and cultural vibrancy. (In fact, New York City’s Black labor force participation hit a record high in 2024, reflecting growing engagement in entrepreneurship and employment.) As NYC Council Speaker Adrienne Adams put it, “our Black-owned businesses and entrepreneurs… drive innovation, create jobs, and strengthen our communities”.
Yet, despite their contributions, Black-owned businesses still face an uphill battle for equality. Nationally, they make up only about 3% of all businesses that can be classified by owner race, even though Black Americans are around 14% of the population. This disparity highlights longstanding structural challenges, from access to capital and corporate supply chains to racial wealth gaps that have limited the growth of Black firms. The picture is similar at the local level: in New York City, Black individuals own only around 2% of businesses while accounting for over 20% of the city’s population, and Black-owned businesses are statistically less likely to survive beyond five years compared to others. These gaps underscore why preserving and expanding Black business ownership is so critical. It’s not just about economic fairness; it’s about closing wealth gaps, revitalizing communities, and inspiring the next generation of Black entrepreneurs.
DEI Rollbacks, the Target Boycott, and Fallout for Black Brands
The urgency of supporting Black businesses has been underscored by recent events, such as the backlash over Target’s DEI pullback. When Target announced in January that it would halt its diversity and inclusion goals, including initiatives to promote Black advancement and Black-owned products, many loyal customers felt betrayed. Target had cultivated a reputation as an ally by partnering with over 100 Black-owned or founded brands on its shelves. The abrupt policy reversal prompted calls for a boycott of the retailer. In the spring of 2025, civil rights leaders and clergy organized a 40-day nationwide boycott of Target to protest its retreat from DEI commitments. The boycott had an impact: Target’s store foot traffic dropped by 11% and its website traffic by 9%, according to Forbes. The public pressure even forced Target to backtrack and reverse its decision, reinstating some of its diversity pledges. But for many Black shoppers and entrepreneurs, the damage was done; the incident eroded trust, showing how quickly a company could “forsake their commitment to equity” after the 2020 racial reckoning.
Ironically, the Target boycott revealed a complex dilemma. While many agreed that holding corporations accountable is important, Black-owned brands themselves stood to lose business if Target’s sales fell or if they were pulled from its shelves. Melissa Butler, founder of the cosmetics company The Lip Bar (a Black-owned brand carried at Target), took to social media to urge a nuanced approach. “If you boycott shopping in these stores, you will directly impact the hundreds of Black-owned, brown-owned, and women-owned brands that are at Target,” Butler warned. Other Black entrepreneurs echoed that sentiment. Chantel Powell, creator of Play Pits deodorant (stocked in over 300 Target locations), noted that Target’s now-rescinded DEI program had allowed her to hire staff and “exhibit Black excellence on and off the shelves.” She understood why consumers were upset, but cautioned that abandoning retailers entirely could be “detrimental” to Black founders like her. In short, the Target episode highlighted both the fragility and the importance of the gains Black businesses have made in big retail. It reinforced why intentional support for Black-owned companies, especially in times of backlash, is vital to keep them thriving.
Spotlight: Black-Owned Businesses to Support (Especially in NYC)
National Black Business Month is not only about reflecting on challenges; it’s a call to action for consumers to celebrate and support Black entrepreneurs. One powerful way to do this is by patronizing Black-owned businesses in your community. Here in New York City, for example, a rich array of Black-owned establishments are contributing to the city’s economy and culture. Below are just a few standout businesses (among thousands) that New Yorkers can support this month and beyond:
- The Lit. Bar (Bronx) – The only independent bookstore in the Bronx, The Lit. Bar is a combo bookstore and wine bar offering a carefully curated selection of books, gifts, and events emphasizing local interest and diversity. Owner Noëlle Santos opened it to fill a void in the community, and it has become a beloved hub for literature and culture in the borough.
- Harlem Hops (Manhattan) – Located in Harlem, this is the city’s first 100% African American-owned craft beer bar. Harlem Hops offers a rotating selection of New York’s best craft brews, including beers from Black and other minority-owned breweries. It’s not only a great place to grab a drink, but also a business that invests in its community (the founders host scholarship programs for Harlem students).
- Brooklyn Tea (Brooklyn) – What started as a local tea shop in Brooklyn has become a premier destination for tea lovers, now with locations in Brooklyn and Atlanta, and soon to be at JFK Airport Terminal 4. This Black-owned brand makes high-quality teas accessible to all, in a welcoming café environment. Brooklyn Tea also sells its own line of teas available for purchase in store or online and their brand became so popular that it caught the attention of Shonda Rhimes, Beyoncé and major retailers.
- Negril Village (Manhattan) – A staple in the heart of Greenwich Village, Negril Village blends modern Caribbean cuisine with rich island ambiance. Known for its jerk chicken, rum punch, and lively brunches, this restaurant celebrates Caribbean heritage while attracting a diverse crowd. It’s a go-to spot for authentic flavor and culture.
- Omar’s Kitchen & Rum Bar (Lower East Side) – This stylish downtown venue offers Jamaican-inspired fine dining with a modern twist. Founder Omar Walters brings Caribbean luxury to the NYC food scene with dishes like rum-glazed salmon and oxtail ravioli, paired with one of the city’s most extensive rum collections.
- Savvy Bistro & Bar (Crown Heights, Brooklyn) – This sleek neighborhood bistro fuses Caribbean and American flavors in a cozy, upscale environment. Owned by Dwayne Winter and Kwesi Williams, Savvy Bistro is a go-to for elevated dining experiences and is deeply rooted in community celebration and connection.
- Crown Hill Theatre (Brooklyn) – A new and independent Black-owned venue, Crown Hill Theatre is dedicated to showcasing emerging talent in the performing arts. With a mission to promote cultural expression through theater, live music, and storytelling, it’s becoming a cornerstone for Brooklyn’s creative community. The venue is also available to rent for select special events, corporate functions, galas, film shoots and concerts.
- Stuart Cinema & Café (Greenpoint, Brooklyn) – Owned by filmmaker Emelyn Stuart, Stuart Cinema is one of the few Black-owned independent theaters in NYC. It screens indie films, hosts community events, and offers production services – all while serving up coffee, snacks, and Caribbean eats.
- Black Spectrum Theatre Company (Queens) – Founded in 1970, Black Spectrum is one of the longest-standing Black theater companies in NYC. With a history of producing original plays, films, and youth arts education, it remains a cultural powerhouse rooted in Black storytelling and social justice.
- Aunts et Uncles (Flatbush, Brooklyn) – A plant-based café and lifestyle boutique founded by husband-and-wife duo Michael and Nicole Nicholas. It’s a vibe-forward space serving vegan Caribbean fare, coffee, books, and merchandise that reflect diasporic style and wellness.
- Lips Café (Flatbush, Brooklyn) – A neighborhood gem offering premium coffee, Caribbean-inspired bites, and a warm, creative environment. Lips Café is known for hosting art shows, poetry nights, and community pop-ups – and for being a hub of culture in Flatbush.
- Uncle Waithley’s (Available in stores and online) – Founded by mixologist and entrepreneur Karl Franz Williams, Uncle Waithley’s is a premium ginger beer brand made with Caribbean scotch bonnet and real turmeric. Inspired by his grandfather in St. Vincent & The Grenadines, Williams created a product that’s now stocked in top-tier restaurants and gourmet grocers across NYC.
These examples barely scratch the surface. Black-owned eateries, boutiques, salons, tech startups, beverage brands, retail stores and service firms abound in New York and other cities, each with its own story and community impact. Directly supporting them by shopping, dining, or using their services is one of the best ways to celebrate Black Business Month. As a D.C. government report noted, buying from Black-owned businesses helps “strengthen the economic foundation” of communities, fostering local job growth and sustainability.
Why It Matters More Than Ever
This year, National Black Business Month arrives at a pivotal moment. The dismantling of formal DEI programs in some quarters has put the onus back on everyday people and private networks to ensure Black-owned businesses are not left behind. Despite recent setbacks, there are signs of resilience and optimism. Black entrepreneurship has been on the rise, for instance, Black-owned firms with employees grew by nearly 57% from 2017 to 2022, and Black women have been leading the charge as one of the fastest-growing segments of new business owners. Supporting these businesses isn’t just about righting past wrongs; it’s about investing in a more equitable future.
During National Black Business Month, advocacy groups and leaders are urging consumers, corporations, and policymakers alike to take intentional steps, from shopping at Black-owned stores and eating at Black-owned restaurants, to improving access to capital for Black entrepreneurs. The underlying idea, as one commentator succinctly put it, is simple: supporting Black-owned organizations promotes greater economic freedom for Black communities. In turn, economic empowerment benefits the entire country through job creation, innovation, and shared prosperity.
In this spirit, celebrating Black Business Month means more than posting a hashtag, it means actively contributing to the success of Black businesses during August and all year round. Whether it’s choosing a Black-owned brand at Target or another retailer or discovering a local Black-owned business in your city, each action is a vote of confidence in maintaining the diverse tapestry of American entrepreneurship. Amid the current challenges, standing by Black-owned businesses is not just about commerce, but about affirming the inclusive values that strengthen our communities.
