4 Lessons From The Golden Age Of Black-Owned Businesses

American historian Juliet E. K. Walker is credited with coining the term “The Golden Age of Black-owned businesses” for the period between the 1900’s and 1930’s. The term was first seen in her book, “History of Black Business in America: Capitalism, Race, Entrepreneurship.” During this Golden Age, Black-owned businesses thrived, prospered, and impacted the Black community in a positive way. There are several lessons that modern business owners can learn from The Golden Age, and those lessons can still be used today.

The Golden Age is marked by the rapid growth of entrepreneurship in the Black community. Due to segregation and harsh Jim Crow laws, this secondary economy came into existence. Black Americans were forced to turn to creativity and ingenuity to sustain their communities. Leaders such as Booker T. Washington helped create the National Business League, just one of the many tools that helped eager community leaders start mom and pop establishments to service communities shut out from the primary economy.

A few key lessons stand out while exploring this period of time. One of them is the importance of banking. Banking is the foundation of all successful economies. According to WPLN, One Cent Bank, now Citizen Savings Bank & Trust, was the brainchild of 16 local businessmen and community leaders who shared a vision to provide fair and adequate financial services to the underserved African-American community. Established in 1904, Citizen Savings Bank & Trust still stands today.

In the modern day, the importance of having access to banking and financial institutions still rings true. Without payment processing, a place to store capital, the opportunity to build credit, and access to funds, business owners will find themselves shut out of the opportunity to operate in any community.

During this time period, building was the common theme. Black business owners focused on providing basic needs and services to sustain the community. Small businesses such as barber shops, funeral homes, hotels, and restaurants sprang into action. Often established by local community members looking to support their families and provide essential services to the communities in which they reside.

Small business owners struggling in the present day might take note of the importance of the “boring” business. An article in Entrepreneur, a news outlet, explores how boring businesses are the backbone of our economy. Although a boring business might not be shiny and glamorous, they provide everyday needs such as laundry services, home repair, and other essentials that keep a community running.

The pooling of resources, skills, knowledge, and the circulation of wealth are the primary ideals surrounding the term “group economics”. Participation in this cooperative ecosystem maximized contributions from all members of the collective. Starting small businesses that practiced group economics ensured skills were utilized, money stayed within the community, and the opportunity to build and sustain an abundant lifestyle was possible.

Similar to The Golden Age, business owners of today are finding value in participating in the pooling of resources. A newer trend involves starting collectives or co-ops that utilize the different skills of its members. Co-ops share office space, resources, and at times, offer different levels of service to the same set of clients.

The importance of pouring into like-minded professionals and building the next generation is the core of any successful economy. During the Golden Age, blacksmithing, woodworking, weaving, and pottery were skills and crafts that were taught and passed down by leaders in the communities from town to town.

Thanks to technology, the internet, and social media, mentorship is more accessible, but just as important. Individuals looking to learn a skill, master a trade, or simply look for guidance can hop on a Zoom, take an online course, or watch a YouTube video. Regardless of the medium, mentorship has and always will be needed.

The Golden Age is arguably the most successful era for Black businesses. During the Golden Age, individuals came together to form a secondary economy. This economy boomed, flourished, and prospered at a swift rate. To this day, many are still learning from this time period. Mirroring the business practices of that time would be wise, as there is much to learn, even today.