Latest news with #BlackOwned
Yahoo
05-07-2025
- Business
- Yahoo
Yelp's addition of a ‘Black-owned' tag led to a slight drop in business ratings in Detroit
Ned Oliver/Virginia Mercury Matthew Bui, University of Michigan and Cameron Moy, University of Pennsylvania When the online review platform Yelp added a 'Black-owned' tag in 2020, it boosted the visibility of Black-owned restaurants in Detroit. It also caused their ratings to drop, according to our recent study. Both local and nonlocal reviewers who showed awareness of a restaurant's Black ownership rated restaurants 3.03 stars on average. Those who did not acknowledge Black ownership gave a rating of 3.78 stars on average. The tag seems to have caused the average rating to drop by attracting more reviewers who were aware of Black ownership. Technology companies often introduce new features and tools to influence user behavior and make their platforms more usable. Although Yelp intended to support Black communities with the Black-owned tag, the design intervention was harmful to Black restaurant owners in Detroit because Yelp failed to consider platform and community-based factors that significantly shape user interactions. Yelp's user base is predominantly white, educated and affluent. Making Detroit's Black-owned restaurants more visible to Yelp users may have amplified cross-cultural interactions and frictions. For example, non-Black users sometimes mentioned 'slower' and 'rude' service as justifications for lower ratings. Close readings of these reviews hinted at intercultural and communicative clashes. And even businesses that don't select the tag are identified within searches as Black-owned, based on user reviews and relevant links. Yelp doesn't provide a way for the business to opt out of these search results. To examine the local impacts of Yelp's Black-owned tag, we collected over 250,000 Yelp reviews of Black- and non-Black-owned restaurants in Detroit and Los Angeles. We identified Black-owned restaurants through community-sourced lists for Detroit and Los Angeles and then generated a random sample for the non-Black-owned restaurants. We then identified reviews that explicitly noted 'Black ownership' for closer analysis. Detroit's Black-owned businesses saw a greater loss in business compared with 'ownership-unreported' restaurants during the COVID-19 pandemic. This means they also potentially had more to gain from the new tag. We found the awareness of Black ownership on Yelp significantly increased following Yelp's addition of the Black-owned tag in June 2020. A year after the tag was added, reviews in Detroit mentioned Black ownership 4.3% more often than a year before it was rolled out. Detroit Black-owned restaurants also saw a small temporary spike in their number of reviews, largely around the time Yelp added the Black-owned tag. At the same time, the restaurants' average star ratings dropped from 3.91 to 3.88. In contrast, non-Black-owned restaurants' ratings stayed relatively steady at 3.90. This metric is an aggregate of all Detroit restaurants' Yelp reviews over their entire existence, so a .03-star rating change is small but significant. Even minor changes to star ratings affect the number of diners restaurants attract, their earning potential and the likelihood they will sell out of food. Adding obstacles in digital platforms serves to reproduce and amplify inequalities these businesses already face, rather than alleviate them. For example, Black-owned businesses have a harder time getting loans and are relatively underrepresented in Michigan as a whole. These findings may seem surprising given that Detroit is a majority Black city. However, Black users on Yelp are a minority. Keeping in mind the skewed user base of Yelp, we hypothesize the lower reviews for businesses featuring a Black-owned tag reflect existing racial and digital divides in the city. Generally, our study provides additional evidence that digital interventions are not 'one-size-fits-all,' nor is digital visibility inherently positive for all businesses. The Research Brief is a short take on interesting academic work. Matthew Bui, Assistant Professor of Information and Digital Studies, University of Michigan and Cameron Moy, PhD student, Annenberg School of Communication, University of Pennsylvania This article is republished from The Conversation under a Creative Commons license. Read the original article.
Yahoo
28-06-2025
- Business
- Yahoo
Yelp's ‘Black-Owned' Tag Was Meant To Help — In Detroit, It's Doing The Opposite, Finds Report
Yelp's introduction of a 'Black-owned' tag for its listings coincides with a decline in ratings for the Detroit area, according to a new report. The introduction of the tag seemingly increased visibility for Black-owned establishments, The Conversation reported. More reviews mentioning Black ownership were posted. Yet, the influx of reviews coincided with a reduction in overall ratings in Detroit. Local and non-local users that acknowledged Black ownership in the reviews tend to leave a lower rating, 3.03 stars. Patrons that indicated no awareness of the owner's race left higher reviews, 3.78. In Detroit, Black-owned restaurants saw a slight decrease in their star ratings. Those businesses went from an average of 3.91 stars to 3.88 after the introduction of the tag. Researchers Mathew Bui and Cameron Moy gathered 250,000 surveys from the Detroit and Los Angeles areas. Then, identifying the mention of 'Black-owned' reviews they were able to narrow their field of scope. The originators of the study believe the outcome stems from Yelp's user base dynamics. Yelp is largely used by primarily white, educated and affluent customers. The study suggests that increased visibility for the Black-owned business may have produced more 'cross-cultural' interactions. This sometimes led to reviews referencing slow and rude service. Researchers stress that digital interventions, despite good intentions, are not universally beneficial and can sometimes inadvertently worsen existing dynamics. Though Bui and Moy's general research points to trends beginning in 2020, the trend of Black businesses lagging continues today. On June 28, the State of Black Business report reveals that, reviews aside, Black businesses are struggling. Despite the initial 30% rise in Black business from 2018 to 2021, Black businesses are being shut out. Black businesses are less likely to receive venture capital investment 0.5% of venture capital funding went to Black founders in 2023, the National Urban League stated. With the active and targeted dismantling of diversity, equity, and inclusion initiatives Black businesses are struggling financially. Yelp's attempt to highlight those businesses has seemingly backfired, adding to the already difficult path owners face. RELATED CONTENT: TSP Live, The 'HBCU Homecoming For Black Businesses,' Returns To Atlanta
Forbes
26-06-2025
- Business
- Forbes
How The Debt Trap Limits Growth For Minority-Owned Small Businesses
How The Debt Trap Limits Growth For Minority-Owned Small Businesses For many women of color, launching a business often begins with a personal investment from their savings, such as maxing out a credit card, taking on a high-interest loan, or, more recently, relying on a Buy-Now-Pay-Later (BNPL) plan to secure inventory. Over time, employing these options can create a debt trap, where the business struggles to grow due to the additional funding necessary to manage the existing debt, limiting business growth, hurting credit scores and quietly capping the potential of thousands of small businesses. Minority-owned small businesses face a disproportionately high cost of capital. A University of Washington study found that Black business owners pay 3.1 percentage points more in interest than equally qualified white peers; Latino entrepreneurs pay 2.9 points more. Over time, those differences amount to an estimated $8 billion in excess interest payments annually; resources that could otherwise be used for business growth, hiring staff, or outreach efforts. As well, the Small Business Administration shows that 17.6% of Black-owned firms and 14.9% of Latino-owned firms rely on personal credit cards for startup funding, compared to just 10% of white-owned businesses. With average interest rates over 20% and balances often carried month to month, compounding interest erodes cash flow, limiting how much can be reinvested in operations. A problem that has inspired the creation of grants initiatives to supply the gap, according to Latasha Randle, strategy and small business program manager at Block Advisors. The Fund Her Future Grant was created in response to deep disparities identified in small business funding, for example. 'As we began to talk to small business owners, we identified the funding gap between men and women. For women of color, the gap was even greater,' Randle said in our conversation in the Brown Way To Money podcast. Knowing about the effects of a debt trap sets women of color entrepreneurs at an advantageous position to analyze and understand the cycle of debt prior to applying or using it in the business context. This article will explore how those debt traps form, why they persist, especially in periods of inflation, and what strategies and systemic shifts are emerging to address them. Debt Traps In The Age Of Inflation And Fintech The economic environment of the past few years has made it harder to escape the debt trap. Between 2021 and 2024, inflation surged, prompting the Federal Reserve to raise interest rates at a historic pace. For small business owners already dependent on credit, borrowing costs increased. To bridge cash flow gaps, many turned to BNPL services or ramped up credit card use. Some opted for fintech platforms that offer faster approvals and lower credit thresholds. For many Black and Latino entrepreneurs, fintech tools provided access when traditional banks did not. But access came with trade-offs: shorter repayment periods, high effective APRs, and opaque lending terms that increased financial vulnerability. 'Buy Now, Pay Later' offers an immediate funding solution for small-ticket purchases. It's helping bring more people into the financial system,' said Amanda Estiverne-Colas, Founder of AGE Advisor, Financial Inclusion Advocate, and board member at NAFLI. 'For individuals who may not qualify for traditional credit cards or who want to avoid hard credit pulls, BNPL provides access to flexible payment options without many of the historical barriers.' Estiverne-Colas notes that when designed thoughtfully, BNPL has the potential to be an inclusive financial stepping stone. 'It can help normalize access to responsible credit for communities that have often been excluded. But there are challenges... Without clear disclosures and embedded education, it can create confusion around repayment terms or lead to unintentional debt stacking.' Recently, the credit industry has recognized this evolving role of BNPL in the financial lives of Americans. In a move that could have long-term implications for entrepreneurs, FICO recently announced it will incorporate BNPL activity into its credit scoring models for the first time. The newly launched FICO® Score 10 BNPL and FICO® Score 10 T BNPL aim to better reflect modern repayment behaviors by factoring in BNPL loans alongside traditional credit data. For business owners who rely on BNPL to manage supply purchases or short-term expenses, this shift could be a double-edged sword: responsible use may help build credit, but stacking multiple BNPL plans (or missing payments) could now have direct consequences on creditworthiness. Digital exclusion added another layer. According to Pew Research, 35% of Black adults and 29% of Latino adults lack home broadband access, making it harder to compare loan terms or access alternative funding sources. For those running businesses entirely from a smartphone, this creates an information gap that limits financial agility. Meanwhile, traditional financial tools have not caught up to the realities of modern entrepreneurs. 'Many are still built on legacy systems that don't match the needs of modern entrepreneurs, solopreneurs, or gig workers,' Estiverne-Colas added. 'As a result, individuals are forced to rely on consumer-based tools—personal checking accounts, P2P apps, and personal credit cards—to run their businesses.' The consequences of this financing burden are clear. Minority-owned businesses are more likely to delay hiring, postpone expansion, or scale back operations due to financial strain. What is often missing from the fintech or bank offerings is inclusivity by design. 'Inclusive design means building for a variety of users and realities: cash-flow-based products, alternative underwriting models, and built-in financial coaching,' Estiverne-Colas explained. Side Hustles And The Risk Of The Debt Trap Many women of color are starting businesses as side hustles. Selling products online, managing freelance work, or running a mobile service as a way to supplement income. But without clear financial tools and systems or a formal business structure, side hustlers are particularly vulnerable to falling into debt traps. As it is common to use personal credit cards to pay for supplies, advertising, or subscriptions, many side hustlers do not seek business credit early because they do not yet see themselves as business owners. Instead, they are more likely to turn to high-interest, personal financing just to keep operations running. 'Today's financial tools must be designed for a modern workforce, not just for traditional 9-to-5 employees,' said Estiverne-Colas 'Solopreneurs, gig workers, and first-time business owners represent one of the fastest-growing segments of the economy, yet most financial products still cater to a narrow definition of 'stable income' and 'prime credit.'' As BNPL and credit card use become more common funding tools, it is critical to approach borrowing with a long-term lens. That means tracking repayment terms, separating side hustle and personal expenses where possible, and understanding how every transaction might affect your credit score. Building A Path Out Of The Debt Trap Escaping the debt trap begins with recognizing how it shows up in day-to-day operations not just as a balance sheet item, but as a barrier to decision-making, growth, and stability. Common indicators include relying on credit cards to cover recurring operating costs, delaying payroll or vendor payments due to loan obligations, or avoiding financing conversations due to fear or fatigue. These are not failures; they are signals that a more sustainable strategy is needed. Protection starts with financial structure and support, which includes separating personal and business finances, creating cash-flow plans that prioritize debt servicing without starving growth, building relationships with mission-aligned lenders before capital is urgently needed, and leveraging community-based financial support systems and mentorship networks. Recognizing a cultural component is needed to break the silence around money. 'The more we foster open conversations about money [...] the more solopreneurs and first-time entrepreneurs will feel empowered to engage, ask questions, and advocate for products that meet their needs,' Estiverne-Colas said. 'Financial shame thrives in silence. Financial confidence grows in community.' Ultimately, the burden of high-cost debt should not fall solely on the entrepreneur. While inflation and rising interest rates have intensified financial pressure across the board, the impact has been disproportionately severe for those already operating at a capital disadvantage, which often are women of color entrepreneurs. Until broader systems are reimagined with inclusivity at their core, and entrepreneurs gain greater awareness of how financial decisions shape long-term outcomes, the most effective defense remains clarity, strategic planning, and informed decision-making.
Bloomberg
15-06-2025
- Business
- Bloomberg
How Ohio Design Firm Moody Nolan Remembers Founder Curtis Moody
Moody Nolan CEO Jonathan Moody remembers his father, Curtis Moody, and how he built the largest Black-owned design firm in the US. Hello and welcome to Bloomberg's weekly design digest. I'm Kriston Capps, staff writer for Bloomberg CityLab and your guide to the world of architecture and the people who build things. Sign up to keep up: Subscribe to get the Design Edition newsletter every Sunday.
CBC
02-06-2025
- Business
- CBC
Hamilton non-profit marks 5 years of support for Black-owned businesses, hopes to make bigger impact
Social Sharing A non-profit organization that supports Black-owned businesses in the Hamilton area celebrates its fifth anniversary this week, and one of its leaders said the group wants to make an even bigger impact in Ontario and Canada. Ashleigh Montague, co-founder of Blk Owned, said while they started in Hamilton, where most of the businesses they support are located, they've also partnered with organizations in the Niagara Region. Montague said they are now ready to take Blk Owned even further. "When I think years from now I am seeing more of a national impact," Montague told CBC Hamilton. "Within the next three years, I see expanding geographically within Ontario, strengthening the reach that we have been able to foster over the last five years." Montague and her sisters — Alexandria Montague and Abygail Montague — co-founded Blk Owned on June 2, 2020 at a time when people around the world had taken to social media to post black squares after the resurgence of Black Lives Matter, and, specifically, the murder of George Floyd by white police officer Derek Chauvin in Minneapolis. Since then, the organization created an Instagram page to showcase Black-owned businesses, launched, and has hosted markets, events, and workshops along with a Black-owned business directory that highlights and showcases businesses to the community. In 2022, Blk Owned launched a trailblazer program to help young Black entrepreneurs gain fundamental skills to help improve their business. They've had three cohorts of participants since. In all, they've supported hundreds of Black entrepreneurs, Montague said. 'Entrepreneurship is really lonely' Blk Owned has received funding from Toronto Pearson airport's Uplift Fund, as well as the Hamilton Community Foundation, Montague said, which has allowed them to launch the community platform and a hybrid version of the trailblazer program. Montague said the trailblazer program runs over a two-month period with online and in-person components. At the end of each cohort, participants receive an award and networking opportunities with more established businesses, with the other participants and with facilitators, Montague said. The in-person segment has been held at Sheridan College the past two cohorts, she added. "Because of our expansion of our program... we've had people connecting with businesses from the Brampton region, the Scarborough region, all the way through to London," she said. "With our work with the Southwestern Ontario Black Business Network, we've been able to stretch our reach all the way to Windsor." Gugu Mpofu is the owner of Oaesis Within, an organic body care and wellness company. She told CBC Hamilton that she was one of the first participants in the trailblazer program, adding that "they've really helped propel my business." "They had mentors who were part of the Hamilton Business Centre and I ended up joining their startup company plus program where I got a grant of $5,000," Mpofu said. "I've always had the support of Blk Owned, whether it's just through their programming, through their vendor markets, through their networking events, and also through them recommending me into spaces where I was able to have wholesales," she added. Mpofu, who also serves as community relationships co-ordinator at Blk Owned, said the organization is more than a support system. "Entrepreneurship is really lonely, very scary, and starting my business, I was worried about being the only Black or racialized person in the room, and just having Blk Owned it's like somebody to lean on," she said. "I can always go back to them if I'm feeling like I need a resource or if I feel like I need to join a market or if I need to network with other people … and that's something that's very precious." Anniversary celebration on June 5 Matheus Brasileiro, the founder and owner of vegan Brazilian bakery Sau Bake in the Hamilton Farmers' Market, has been in business for more than two years — first in Toronto, and then Hamilton. They said they learned about Blk Owned through a friend and participated in the trailblazer program last year, adding that it was "very helpful." Brasileiro said the support Blk Owned provides to small businesses is like "having someone that gets your back and understands the struggle that you go through as a Black business and small business." "You can't run a small business without a community, without having support, and one of the big reasons that I [got] to where I am right now with my little shop … was knowing that I had Blk Owned [to support me]," Brasileiro added. To mark the fifth anniversary of Blk Owned, Montague said the organization will be hosting a community celebration on June 5 at CoMotion On King, the co-working space out of which staff work. Montague said part of the free event will be "taking a look back at the last five years, but also taking a moment to reflect on where we're going to be going, moving forward from here." Later in the summer, on July 13, they will also be hosting a fundraiser and awards gala, called the Garden Party at the Royal Botanical Gardens, where Blk Owned will be honouring seven business owners in the Hamilton community, Montague said.
