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The Economic Reality: It's Time for Black Women to Lead Their Recovery

Sisters, we need to have an honest conversation about what's happening in our economy right now. The numbers don't lie, and they're telling a story we can no longer ignore.

The unemployment rate for black women has surged to 6%, double that of white workers, with the most significant spikes occurring in recent months. While other groups are maintaining or improving their employment rates, we're regressing. In May, black women's unemployment climbed to 5.8%, up from 5.3% a year ago, even surpassing the jobless rate for Black men.

But here's the deeper issue that nobody is talking about: where our money goes after we earn it.

The Money Trail: Following Our Dollars Out the Door

Understanding Our Economic Footprint: A Candid Look at Our Spending Patterns. We must be honest about where our money goes. When we invest in our appearance, whose benefits are we truly reaping?

Research from the University of Georgia's Selig Center reveals a painful truth: money circulates only once within the African American community, compared to six times in the Latino community and nine times in the Asian community. Money circulates zero to one time within the black community, compared to unlimited times within the white community.

Translation: We're funding everyone else's economic mobility while staying economically stagnant ourselves.

Think about it:

  • Hair Care: We spend billions annually, but Korean and other Asian business owners own most salons and supply stores
  • Nail Services: Vietnamese-owned salons dominate this market, which Black women heavily support
  • African Hair Braiding: Often owned by recent African immigrants rather than African Americans
  • Beauty Supply Stores: Predominantly Korean-owned despite serving primarily Black customers

We're not saying this is wrong; we're saying we need to understand the economic impact and create our opportunities. Understanding the financial impact of our spending is the first step towards empowerment. We have the power to change our economic situation, and it starts with understanding where our money goes and how to redirect it to benefit our community.

The Path Forward: Concrete Steps to Economic Independence

  1. Start Where You Are, With What You Have
    2. Service-Based Businesses You Can Launch Today:

  2. Leverage Your Professional Experience
    From your corporate or federal work experience:
    • Consulting in your former field
    • Training and development services
    • Compliance and regulatory consulting
    • Grant writing services
    • Project management consulting
    • HR consulting for small businesses

  3. Create Beauty and Wellness Opportunities
    Instead of just spending, start earning:

  4. Build Tech-Enabled Businesses
    Use technology to scale:
    • Online course creation in your expertise area
    • E-commerce stores selling products you create or curate
    • Digital marketing services
    • App development or tech consulting
    • Online community building and monetization

Actionable Steps to Start This Week
Week 1: Assessment
  • List your skills, experience, and passions
  • Identify problems you can solve for others
  • Research your local market and online opportunities
  • Calculate how much you currently spend outside the Black community

Week 2: Planning
  • Choose one business idea to test
  • Create a simple business plan
  • Set up basic business infrastructure (e.g., LLC, business bank account)

Design a minimal viable product or service
Week 3: Launch
  • Start with friends, family, and social networks
  • Offer your service at a test price
  • Gather feedback and testimonials

Refine your offering based on results
Week 4: Scale
  • Expand your marketing to broader networks
  • Join Black business organizations and networking groups
  • Reinvest profits back into your business
  • Plan for hiring other Black women as you grow

Building Community Wealth
Support Black-Owned When Possible:
  • Use apps like EatOkra, Official Black Wall Street, and BLK + GRN to find Black-owned businesses
  • Join or create local Black business networks
  • Practice group economics, pool resources with other Black women entrepreneurs

Mentor and support emerging Black women business owners
Create Cooperative Models:
  • Form business cooperatives with other women
  • Share resources, knowledge, and customer bases
  • Create buying groups for better wholesale pricing
  • Develop shared service offerings

The Multiplier Effect in Our Hands

When we keep money circulating within our community through Black-owned businesses, we create jobs for our sisters, fund our children's educations, and build generational wealth. As dollars move through our community, they generate more local wealth, charitable contributions, and jobs. We are not promoting separatism, but an economic strategy.

Every other community understands this principle. Jewish communities have mastered it through networks, mentorship, and intentional economic cooperation. Asian communities practice it through family businesses and community investment. Latino communities are learning it rapidly. It's our turn.

The Time Is Now

Sisters, we can't wait for the economy to fix itself for us. We can't wait for employers to value us appropriately. We can't wait for someone else to create opportunities.

We must create our economic ecosystem.

The skills are already in our hands. The market demand exists. The technology to reach customers is available. The only thing missing is our collective decision to prioritize our economic independence over convenience.

Start today. Start small. But start.

Your sisters are counting on you. Your daughters are watching. Your financial freedom is waiting.

The SOFEI Group provides the training, networks, and the support you need to turn your ideas into income. Because when Black women win economically, our entire community wins.
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