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For BIPOC entrepreneurs and small businesses, there are more grant programs and incubators offering access to critical funding.
August 31, 2023
Consumers say they are still looking for wellness products that speak to them, which means opportunities for new brands. According to information released by McKinsey in 2022, approximately 50% of U.S. consumers said wellness is a top priority in their day-to-day lives, up from 42% in 2020. For these Americans, priorities include their health, appearance, sleep, fitness, nutrition, and mindfulness. Consumers are spending more than ever on vitamins and supplements, skincare, hygiene products, yoga classes, health tracker apps, wearables, life coaches, and therapy—to name just a fraction of the myriad products and services that fall under the guise of wellness today. And while there has been a flurry of media hype around and dollars spent on wellness, not all consumers are content with the current assortment of offerings. According to the McKinsey survey, 47-55% of Black consumers said they needed more wellness products and services to meet their needs, compared to just 30-35% of white consumers. In today’s omnichannel marketplace, consumers seek products from a range of sources. The online marketplace provides the best window shopping for consumers and exposure for small brands. In fact, according to Amazon’s U.S. Small Business Empowerment Report released in May, the most-shopped categories from U.S. independent sellers in Amazon’s store are health and personal care, followed by home, beauty, grocery, and apparel. Unfortunately, not every small seller will survive—even if they have a great product. Overall, 50% of small businesses fail after five years (major reasons are the inability to secure finances and running out of money). And the odds of failure are higher for small businesses owned by Black, indigenous, and people of color (BIPOC). According to sources, eight out of 10 BIPOC businesses fail within their first 18 months due to a lack of resources and funds.
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