When the first wave of federal COVID-19 provisions became available to businesses in April, Black business owners received a very small amount of relief funding. And the North Carolina Business Council estimates the number of Black businesses in the state has decreased by 41 percent since the beginning of the pandemic. There are several reasons for this, including the racial wage and generational wealth gaps, both of which contribute to Black businesses starting up with lower capital and struggling to sustain themselves without economic relationships with banks and other wealth-holding institutions.
North Carolina’s Black business owners face an uphill climb in the aftermath of COVID-19. Provided they find a way to remain afloat during the pandemic, business growth will be challenging. Partners in Equity has launched a new data and investment initiative, ResilNC, designed to help Black businesses sustain themselves longterm, after the economy restabilizes and businesses reopen permanently. Host Anita Rao talks to Napoleon Wallace, founding partner of Partners in Equity, as well as several local Black business owners, including Dorian Bolden, owner of Beyu Caffe and Beyu Blue Coffee; Justus McGee, owner of Soul Fresh Spring Rolls; Jackie Morin, co-founder of Wonder Puff Cotton Candy; and Shine Carter, owner of Shine Diamond Nails.
On Business Capital Disparities
Napoleon Wallace says that the race-based disparity for Black and white business owners begins at the start-up level. “As part of our study, we found that when you look across all the businesses in the state, minority businesses, Black businesses [have less household wealth],” he explains. “Average household wealth is about $171,000 for white households, [while] the average Black household has about a tenth of that.”
On Giving Back As A Way Of Getting By
Though Dorian Bolden notes that he was in a unique situation as a Black entrepreneur, given his relationships with a number of banks and investors, he still struggled to keep his Beyu locations afloat. Eventually, the company looked to partnerships with nonprofit organizations to remain sustainable. “Every business is built on serving customers, you know, to solve a problem. And that's kind of what we went back to,” he recalls. Beyu Caffe partnered with the Durham Public Schools Foundation to provide meals to families during the school year and the summer.
On Rolling With The Punches
Justus Wallace was on the cusp of his first profitable month with his food truck in March 2020. He bought the truck in 2018, after selling his signature spring rolls under tents at events. He notes that the demands of food truck vending are high. “It’s just constant going, everywhere. You drive to Greensboro, drive to Greenville, Fayetteville. All over North Carolina, pretty much, just trying to get our name out there.” The pandemic brought all of his travels to a halt, as events and large gatherings dried up statewide. In October of 2020, he sold his truck. He continues to sell cooked spring rolls out of his commercial kitchen location in Durham. He also offers frozen spring rolls, the timing of which turned out to be fortuitous. “The first week of March, we got approved by the State Department of Agriculture to sell the rolls frozen in retail spaces.” He hopes to see the frozen rolls on grocery store shelves in the future.
On Selling Joy During A Time Of Sorrow
Jackie Morin and her husband Rem founded Wonderpuff Cotton Candy in 2017. Their artisanal, organic cotton candy has since become popular in the Triangle, but the pandemic has presented the unexpected opportunity for them to expand their customer base. Through e-commerce, they’ve been able to sell their product to consumers all over the country. “I cannot believe how beautiful and successful we have become in such a historic time for humanity,” says Morin. “I never thought that kind of candy would give me sustainability in a time where everyone is facing exhaustion in every way. And we do not take that lightly. I feel like it's a calling, to move with intention and enjoy and go. We're very just very happy to be making cotton candy.”
On Starting Up As Everything Was Winding Down
Shine Carter was only in business for one month when the pandemic hit. Her Asheville-based nail salon is one of few Black nail salons in the area, and it relies heavily on tourist foot traffic. With tourism at a standstill, Carter had to figure out how to make ends meet in order to avoid closing her newly-opened doors. “I would take like a couple people at my house but I didn't really want a lot of people to come into my house. The product smells. There's lots of products, a big mess everywhere. I have kids. So I basically just worked a Certified Nursing Assistant job that I had. I just picked up shifts with the nursing home to cover the cost of my storefront. Luckily my overhead was pretty low.” She has since been able to safely reopen full-time.