Marketplace Morning Report: Black-Owned Businesses Weather Yo-Yoing Support

Release Date: June 19, 2025

In this insightful episode of Marketplace Morning Report, host David Brancaccio delves into the fluctuating support for Black-owned businesses, a topic of heightened relevance on Juneteenth. As the nation commemorates the formal emancipation of enslaved individuals in Texas, the episode explores the persistent wealth gaps faced by Black entrepreneurs and the volatile nature of consumer and corporate backing.

Introduction to the Challenge

David Brancaccio sets the stage by highlighting the significant shift in support following the murder of George Floyd. The ensuing social justice movement catalyzed a surge in backing for Black-owned businesses from consumers, financial institutions, and major corporations. However, this momentum appears to have waned, presenting challenges for these businesses.

Timestamp: [02:02]

David Brancaccio: "Black-owned businesses during persistently complicated times."

The Yo-Yo Effect: Peaks and Troughs in Support

Marketplace’s Justin Ho interviews Frankisha Watkins, the owner of Be Polished Beauty Supply in Dallas, to illustrate the "yo-yo effect"—a pattern of fluctuating support that businesses face.

Timestamp: [02:47]

Frankisha Watkins: "I remember working so hard I actually walked a hole in one of my shoes, like in the toe area."

Initially, Watkins experienced a booming foot traffic surge fueled by social media campaigns encouraging nationwide support for Black-owned enterprises. This success led her to expand by opening a second location.

Timestamp: [02:55]

Frankisha Watkins: "We were getting so many new customers, people who didn't necessarily know that we were there."

However, the surge was short-lived. After approximately five months, support dwindled, forcing Watkins to shutter one of her locations.

Timestamp: [03:19]

Frankisha Watkins: "One month you're doing really good and then the next month people no longer support you. Like, you cannot run operate a business like that."

Justin Ho emphasizes the severe implications of this inconsistency, noting that businesses cannot make reliable forecasts or strategic decisions based on unpredictable cash flows.

Impact on Operations and Financial Stability

Sherard Duvall of OTR Media Group shares his experience with the decline in support, which directly affected his company's operations.

Timestamp: [03:50]

Sherard Duvall: "Like late vendor payments, late contractor payments. Once in February and once in March, we miss payroll."

Duvall recounts how his company thrived over the past five years, expanding its workforce and securing a new office. However, this year marked a downturn as clients ceased partnerships aimed at supporting minority-owned businesses.

Timestamp: [04:20]

Sherard Duvall: "Clients that we have that were looking to partner with a minority owned business or were mandated to look for deals with minority owned businesses, all stopped."

This abrupt halt led Duvall to adopt a more cautious approach when approached for partnerships, aiming to safeguard his business against future uncertainties.

Timestamp: [04:38]

Sherard Duvall: "I think there's a lot of businesses like mine that are going to tread lightning when we get those phone calls and receive those emails or see those opportunities just to protect ourselves."

Strategies for Sustained Support

As major corporations like Target and Walmart retreat from Diversity, Equity, and Inclusion (DEI) initiatives, Brandalyn Green offers strategic advice to Black-owned businesses to maintain customer engagement and sales continuity.

Timestamp: [05:11]

Brandalyn Green: "People are saying, I don't want to shop at Target, but I will support you and your website. I will support you as a black owned brand because these other major corporations have turned their back on you."

Green recommends leveraging social media to establish authority and trust, ensuring that businesses remain visible and credible even when widespread support diminishes.

Timestamp: [05:28]

Frankisha Watkins: "Up as the authority or you know, the expert in that space, people will trust you even when there is no big viral issue going on."

By implementing tactics such as offering discounts for contact information and encouraging email list sign-ups, Green advises businesses to create a loyal customer base that can sustain them through periods of low external support.

Conclusion: Navigating the Future

The episode underscores the importance of resilience and adaptability for Black-owned businesses in a landscape of inconsistent support. By diversifying strategies and strengthening direct customer relationships, these businesses can better weather the fluctuations in consumer and corporate backing.

Timestamp: [05:37]

Justin Ho: "The goal, Greene says, is to keep sales coming in when waxing support inevitably wanes."

David Brancaccio concludes by reinforcing the ongoing challenges and the need for continued attention to the economic conditions affecting Black entrepreneurs.

Key Takeaways:

1. Initial Surge and Subsequent Decline: Social movements can create temporary boosts in support for marginalized businesses, but without sustained efforts, this support may fade, leading to operational challenges.

2. Financial Instability: Inconsistent support affects businesses’ ability to manage cash flow, make strategic investments, and maintain steady employment for staff.

3. Strategic Adaptation: Black-owned businesses must adopt versatile marketing and customer retention strategies to mitigate the effects of fluctuating external support.

4. Building Authority: Establishing expertise and authority in their respective industries can help businesses maintain trust and loyalty among customers, ensuring continued patronage beyond viral support waves.

5. Caution in Partnerships: As corporate partners retract from DEI commitments, businesses must be judicious in forming new alliances to protect their interests and ensure long-term viability.

By addressing these challenges head-on and implementing strategic measures, Black-owned businesses can navigate the unpredictable tides of support and work towards more stable and equitable economic standing.