Black-owned businesses weather yo-yoing support

Summary

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.

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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.

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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.

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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.

Transcript

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[David Brancaccio]

Black owned businesses during persistently complicated times. I'm David Brancaccio in Los Angeles. Today is Juneteenth. It commemorates the formal emancipation of enslaved people in Texas. We've been examining persistent wealth gaps by race now to consumers and black owned businesses. Following the murder of George Floyd, the social justice movement, it accelerated, led to a wave of support for black owned businesses from consumers, banks and big corporations. But that support is more muted now. Marketplace's Justin Ho talked with black small business owners about navigating these ebbs and flows.

[Justin Ho]

Around this time five years ago, Frankisha Watkins says foot traffic was booming at the beauty supply store she runs in the Dallas area.

[Frankisha Watkins]

I remember working so hard I actually walked a hole in one of my shoes, like in the toe area, watkins says.

[Justin Ho]

Be Polished Beauty Supply was getting a lot of traffic from social media posts, people tagging the company as part of a nationwide effort to support black owned businesses. Sales were so good, Watkins opened the second location.

[Frankisha Watkins]

We were getting so many new customers, people who didn't necessarily know that we were there. I honestly thought that that would stay, that support would stay with us and.

[Justin Ho]

It did not, watkins says. For her, the Shop Black movement lasted about five months or so. She ended up having to close one of her locations. Watkins calls this the yo yo effect.

[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]

You can't because a business owner has to be able to make reliable forecasts to make purchases and hiring decisions based on the cash flow they expect. So the yo yo effect has ramifications.

[Sherard Duvall]

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

[Justin Ho]

That's Sherard Duvall. He runs OTR Media Group, a company in Columbia, South Carolina that films and produces documentaries and other video content. His clients include private companies and local governments. Duvall says a lot of them were eager to support black owned businesses. For most of the last five years. His company grew. He hired more staff and got a new office downtown. Then came this year.

[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.

[Justin Ho]

Duvall says going forward he's going to be more cautious when someone comes along saying they want to partner with a black owned business.

[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.

[Justin Ho]

Now that Target, Walmart and other big companies are distancing themselves from DEI initiatives, there's a new wave of support for black owned businesses, says Brandalyn Green. She advises businesses on how to market themselves on social media.

[Frankisha Watkins]

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.

[Justin Ho]

Green says she's advising her clients to do whatever they can to keep those customers. Offer discounts in exchange for contact information, push customers to sign up for email lists, Greene says she's also advising business owners to market themselves. Says industry experts, when you consistently show.

[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.

[Justin Ho]

The goal, Greene says, is to keep sales coming in when waxing support inevitably wanes. I'm Justin Ho for Marketplace.

[David Brancaccio]

Markets are closed today. Juneteenth.

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[David Brancaccio]

Major film streaming and TV studios are doing more production outside Los Angeles, Georgia, New York, not to mention Western Canada. And that's been tough for Hollywood. Hollywood Some industry people say it feels like when big pieces of the auto industry left Detroit, and local small business owners in Southern California say the decline is hitting their bottom lines. KCRW's Megan Jamerson reports.

[Megan Jamerson]

Julie Pop is sitting elbow to elbow with other diners at the counter inside Chili John's in Burbank, and she's about to dig into a bowl of spicy hot stick to your ribs chili. It's made from a 130-year-old recipe.

[GoFundMe Representative]

You know how people like really play with chili recipes and you get like pumpkin chili and you know, lots of weird stuff. This chili is just real beef chili. So Good.

[Megan Jamerson]

But even the best chili isn't filling seats. On this Wednesday, only a dozen customers are here for lunch. A few years ago, it wasn't uncommon for there to be a line out the door, says owner Steve Hager.

[Sherard Duvall]

Burbank runs off the entertainment industry, so as long as the entertainment industry is slow, all the services are going to be slow.

[Megan Jamerson]

The restaurant has been around since 1946. When Hager took over the business 10 years ago, he knew the success of the place was tied to its location. It's only a few miles from the big Hollywood studios like Warner Brothers and Disney.

[Sherard Duvall]

Walt Disney used to eat here, and.

[Megan Jamerson]

So did all kinds of entertainment workers. But they aren't eating out these days because they often don't know when their next paycheck will come. A report by Otis College of Art and Design found that last year Hollywood jobs were 25% below their peak, which was in 2022.

[Sherard Duvall]

Even my friend that has a salon a couple doors down, she's sloped.

[Megan Jamerson]

Hager is getting doubly hit by the slowdown. He also rents out the restaurant for filming. He used to book about 10 TV shows or films a year. But on location, shoots are down by 22% in the Greater LA area compared to last year. So far this year, Hager has only booked three productions.

[Sherard Duvall]

We knew we needed to reinvent ourselves because the restaurant was basically just like dying a slow, painful death.

[Megan Jamerson]

California lawmakers approved a plan in June to beef up the state's film incentive program. But Hager isn't waiting around for that. So he's trying new things like a tap room with cheap beer to keep customers coming back. Back inside. Chili John's. Billy Swanson Jr. Is a regular here. He was 13 when he first ate at this restaurant. Now Swanson's a retired teacher.

[Richard Karn]

I'm pretty old, but you never get.

[Justin Ho]

Too old for chili.

[Megan Jamerson]

John's Chili Hager's hoping that regulars like him will keep coming back, so maybe he will be able to stay in business for another 79 years. In Burbank, California, I'm Megan Jamerson for.

[David Brancaccio]

Marketplace, and you're listening to the Marketplace morning reports from APM American Public Media.

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[David Brancaccio]

Regardless, I was hoping you wouldn't say that. I need to go and get some whiskey.

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