pital funding went to Black-owned businesses, marking the first year that figure has been under $1 billion since 2016. This is especially concerning considering that Black founders received a total of $4.9 billion in 2021, a record year for venture capital spending. Compared to 2021, the latest numbers represent an astonishing 86 per cent drop in funding for Black business founders.   How brand founders are responding to current fiscal circumstances  The shrinking funding pool has already hurt some start-up founders like Dalaise Hickey, a social worker turned entrepreneur whose brand, BabyDonna, offers mineral sunscreen for children with deeper complexions. “This decline in funding for Black-founded startups impacted my decision to crowdfund, which I initially planned to crowdfund at the start of 2024,” Hickey told Inside Retail. “However, after noticing a decline in sales along with the various lawsuits against organizations helping to provide funding for Black women-owned startups, I made the decision to wait and not launch my campaign. This has impacted my ability to access the capital I need to expand my product line and increase my marketing, both of which are important in order for me to scale and grow.” Nevertheless, Hickey has decided to offer price discounts out of concern for her customers’ ability to access the brand’s products amid higher costs of living. “I believe we have to maintain flexibility and meet our customers where they are and if it means lowering our price, then that is what I am willing to do,” Hickey explained. Other brand founders like Nancey Flowers-Harris, the co-founder and chief operating officer at Vontélle Eyewear, have taken a similar approach to ensure that customers can access products of medical necessity, like sunscreen or glasses. “As a small business, Vontélle has certainly felt the ripple effects of these economic conditions,” Harris told Inside Retail. “We have noticed a cautious approach from consumers when it comes to discretionary spending, including on items such as eyewear. This has translated into a more deliberate and considered purchase process, with customers prioritizing value and durability over frequent fashion updates. However, eyewear is a medical necessity and as such often takes priority for our consumers.” The founders of Vontélle Eyewear have taken several strategic actions, including offering selective discounts and promotions and flexible payment options, such as “Shop Pay” or PayPal installment options for customers facing financial constraints.  The founders have also explored alternative funding sources, such as grants, angel investors, and crowdfunding platforms to supplement their financial needs. Additionally, they have forged strong partnerships with retailers such as America’s Best, VSP Eyeconic, and independent eye care practitioners, and obtained licensing agreements and partnerships with brands like Nickelodeon Paramount to create additional revenue streams and brand visibility. However, it is not only up to brand founders themselves to boost financial support for Black-owned businesses.  Harris and her co-founder Tracy Vontélle Green provided six suggestions for how the retail industry at large can better support Black-owned brands, including: Inclusive supplier diversity programs “Retailers can create and enhance supplier diversity programs that actively seek out and support Black-founded brands. This includes offering mentorship, resources, and shelf space that doesn’t come at a high expense to help these brands thrive.” Partnerships and collaborations “Large retailers can form partnerships with Black-founded brands for exclusive collections or co-branded products. These collaborations can bring visibility and credibility to smaller brands while offering unique products to consumers.” Equitable funding opportunities “Financial institutions and venture capital firms within the retail sector should commit to providing equitable funding opportunities. This includes setting aside specific funds and resources for Black entrepreneurs and startups.” Marketing and promotion “Retailers can dedicate marketing efforts to highlight Black-founded brands, using their platforms to tell these brands’ stories and showcase their products. Carriage of the brand is great, but without marketing efforts, the campaign may not be successful.”  Educational workshops and resources “Offering workshops, webinars, and resources focused on business development, marketing, and scaling can equip Black founders with the tools and knowledge they need to succeed. Topics can include navigating retail partnerships, e-commerce strategies, and financial planning.” Community building and networking “Establishing networks and communities where Black entrepreneurs can connect, share experiences, and support each other can foster a sense of belonging and collective growth. Retailers can host events and forums to facilitate these connections.” Transparency and accountability are also key aspects of authentic support, Harris said.  Retailers should commit to reporting on their diversity and inclusion efforts regularly, including progress on supporting Black-founded brands, to help maintain accountability and encourage others in the industry to follow suit. “By implementing these strategies, the retail industry can create a more inclusive and supportive environment for Black-founded retail brands, helping to drive growth and success across the sector,” Harris emphasized.   While support for Black-founded brands rose exponentially within the retail industry in 2021, due to increased awareness brought on by the political and social circumstances of 2020, following the murder of George Floyd, that support has since decreased as performative allies have returned to business as usual.  “It’s unfortunate that it took a forceful sit down for people to realize their privilege…But now distractions are back and privileges have amplified,” Nikki Porcher, founder of Buy From a Black Woman, told Inside Retail. “Some people only did it because other people were doing it and it wasn’t a true desire on their part,” she said about the decline in support for Black-owned businesses. Porcher is frustrated with terms like ‘ally fatigue’ because as she pointed out, “How are you too tired to support somebody?”  She believes executives with ample funding need to acknowledge their privilege and work with Black brand founders authentically and sustainably.  She also believes they need to fight cuts to DE&I programs and other opportunity-restricting legal barriers.  For Black founders and business owners, tapping into the strength of the community is key. “I go where the community tells us we need to go,” Porcher said.  “Right now we’re in the procurement space and certification space. We know that those are spaces where founders can get more money upfront to do bigger jobs and continue sustaining their businesses. We’re also touching into the government space with policy proposals of getting [injust] laws overturned, so there are some spaces we are going in. “But if you were to ask me that three years ago, I wouldn’t have given this answer. It’s just one of those things where we’re guided by the community because the community is always going to tell us what they need. We have to make sure we’re always listening to them first.”