Politics As Usual

Author

Sean Davis Jr
March 17, 2025

If you live in the U.S., you more than likely have felt the existential dread amidst the concerns over inflation, job insecurity, and a potential government shut down. If you are a business owner, the dread has materialized into increased goods costs and decreased consumer confidence. For many, the recent Trump administration has issued a complete one-eighty degree turn from the height of the pandemic, when the Small Business Administration saw a record 16 million business applications filed. Many business owners are uncertain on how to thrive, with an unprecedented amount of volatility with no end in sight. This is especially true for black business owners. 

Black business owners have seen a significant decline in corporate funding, partnerships, and sponsorships. True to form, President Trump’s administration has slashed several DEI federal programs that supported Black owned businesses through federal contracts, certification programs, and funding opportunities. Executive order 14173 rescinded President Lyndon B Johnson’s EO 11246, which mandated federal contractors to create affirmative action plans for women and minorities. Subsequently, businesses such as Meta, Amazon, Walmart, and Target ended their corporate sponsorship and DEI positions, sparking widespread backlash on social media. For many in the Black community, this news hit hard, given corporate commitments to equity made in the wake of George Floyd’s murder. Minority and women owned businesses were personally impacted by Target’s decision to cut their REACH program, which guaranteed a $2 billion investment in Black owned businesses by the end of 2025. This pullback has proven to be eerily reminiscent of life pre-Civil Rights Act, a time when many Black companies were (1) unable to access capital, (2) faced restricted market growth, and (3) lacked federal government support.  

 Learn from those that came before

Black businesses should look to owners from the past to learn how to navigate this political and socioeconomic climate. During the Jim Crow era, several business owners amassed a small fortune with specific tactics - A.G. Gatson being one of them. Gatson started his burial and insurance business while also working in the Alabama coal mines. Gatson employed Booker T. Washington’s “cast down your bucket” philosophy, centering his business in Alabama as opposed to moving North. This philosophy’s key themes include economic success over political confrontation, cooperation, and self-sufficiency. Employing this mindset helped Gatson to circumnavigate some of the legal and social barriers of his time. By focusing on serving his community, Gatson filled a market void by vertically integrating his insurance, funeral home, and Black business college. Gatson’s methods proved successful because he mastered providing essential services with a community-centered business model. Moreover, Gatson’s businesses complemented one another which helped him to cement himself as an economic pillar in Alabama.  

 It’s a lot of big money in my sentence.

Black business owners should take a page from Gatson’s book. According to the Nielsen Research Co. Engaging Black Audiences, the Black community is projected to wield a $2.4 trillion economic buying power in 2026 - a 2.4x growth rate since 2000. Meanwhile, all businesses are adapting to the dominance of the digital marketplace, which has overtaken traditional methods of client acquisition. For example, in 2023 alone, TikTok aided small businesses, boosting their sales by $14.7 billion. With 52% of Black Americans under the age of 35, meaning the community has an outsized influence on digital trends (surprise, surprise). 

As whispers of a potential recession cycle in the media and political pundits debate the fallout of shifting policies, Black business owners can stay ahead in this unpredictable economic landscape by staying nimble. Prioritizing recession resilient products and services ensures consistent demand. Building community networks ensures customer support and loyalty, a lesson Target could stand to learn. Embracing technologies such as the blockchain and AI would aid Black business owners in streamlining processes, and build trust in transactions when exchanging goods or making purchases. These tactics would also help to create systems that offer proof of value. By assigning unique digital identities to products, business owners can offer transparency via online sales. Despite economic uncertainties, Black businesses that adapt strategically will thrive, finding reassurance in the fact that today’s economic circus is just politics as usual.