Black Customers Can Shape the Reputation and Success of Black-Owned Businesses in 2025
Supporting a Black-owned business should never mean blindly backing a subpar product or service. If you choose not to support a business, the respectful move is to communicate why—rather than gossiping or discouraging others from supporting it. Yet, the real question is why some Black consumers actively dissuade others from supporting Black businesses at all.
Running a business today, especially as a Black entrepreneur, remains both exhilarating and exhausting. I’ve heard firsthand from business owners who say, “I want to support you, but if I do, others in the industry will question my loyalty or even attack me.” This kind of intra-community pressure, amplified by social media and digital transparency, creates a toxic environment where solidarity is undermined by jealousy and gatekeeping.
Despite these challenges, Black entrepreneurs understand the scarcity of opportunities and resources available to us. But why does a scarcity mindset prevail—where if we can’t help everyone, we help no one? In 2025, this mentality is more damaging than ever, especially as AI-driven tools and automation offer scalable ways to support and uplift each other without draining limited resources.
In industries like entertainment and tech, youth and innovation drive success. The 16-year-old AI music producer or the young coder disrupting traditional models cares less about tenure and more about current impact. Yet, many Black-owned businesses still face outdated gatekeeping, where access to capital and networks remains limited compared to their white counterparts who often have direct lines to decision-makers.
Small Black-Owned Businesses Face Persistent Cash Flow Challenges Despite Growing Economic Impact
Black-owned businesses added an estimated $217 billion to the U.S. economy in 2024 and employ over 1.2 million people, with healthcare, social assistance, and professional services leading the way. Yet, nearly half of Black business owners are denied loans, and approved financing rates remain below the national average—6.5% in 2025, up from 4% in 2017 but still far behind white-owned businesses.
Cash flow remains a critical issue. Many Black entrepreneurs feel pressured to offer discounts or extended payment terms to support their community, which can erode profitability and sustainability. This “more give than take” dynamic is taxing and often leads to burnout. Meanwhile, white-owned businesses typically operate with clearer boundaries and more straightforward financial transactions.
Alternative financing options like community development financial institutions (CDFIs), Black-serving credit unions, and online lenders are increasingly vital. These institutions leverage technology and AI-driven credit assessments to fill gaps left by traditional banks, helping Black entrepreneurs access capital more efficiently.
Business Support or Business Block? The Complex Reality of Intra-Community Dynamics
One Black entrepreneur candidly shared, “If it wasn’t for Black people, I wouldn’t have been successful. But if it wasn’t for Black people, I might have been more successful.” This paradox highlights the painful reality of judgment, sabotage, and gatekeeping within the community. Middleman tactics—where intermediaries siphon off funds or block direct access to decision-makers—remain a significant barrier.
Many Black entrepreneurs report that doing business with white clients can be more straightforward: clear terms, timely payments, and fewer hidden obstacles. In contrast, dealing with Black corporations or middlemen often involves delays, discounted rates, and resistance to equitable business relationships.
These dynamics are compounded by psychological and systemic factors, including internalized scarcity and competition for limited resources. However, with AI-powered platforms and automation tools now available, Black entrepreneurs can bypass some traditional gatekeepers by directly connecting with customers, streamlining operations, and scaling without relying solely on community-based support.
So why does it sometimes feel like Black people block other Black people’s success? The answer is complex, involving historical trauma, economic pressures, and social dynamics. But in 2025, the path forward lies in embracing technology, fostering transparent communication, and building ecosystems that reward value and innovation rather than tenure or familiarity.
What are your thoughts on how Black entrepreneurs can leverage AI, automation, and the creator economy to break these cycles and build sustainable success?
Kevin "KevRoss" Ross is a music and radio industry expert. He is a 20 -plus year entrepreneur with the leading most successful industry trade publication and site Radio Facts (www.radiofacts.com). He has also published various books, magazines, performed marketing and promotions for major corporations and recording artists and he is on the advisory board of several industry organizations. This year Ross introduced his non profit organization LOMARI (Leaders of the Music and Recording Industry) to help teach young minority students how to market and manage their music and products.
