Adopting Digital Strategies – 3 Reasons Why Black Business Leaders Should Adopt Digital Strategies To Increase Competition
Our communities’ small businesses are their foundation. They provide for and look after our families, aid in economic expansion and stability, and promote deep connections with those they work with. Nobody appreciates the value of small businesses more than residents of communities of colour, disproportionately those most likely to experience corporate neglect and disinvestment.
The majority of Black and other entrepreneurs of colour also own and run these small businesses. Racial injustices still exist, and many Black-owned small businesses lack the funding required to expand and weather a recession despite the importance of their operations to their communities.
Fortunately, in today’s tech-driven economy, Black small business owners have new digital tools to support their companies’ survival, growth, and differentiation from corporate rivals. Here are three reasons Black small business leaders should meet this moment and embrace digital transformation.
1. Improving agility
Shutdowns resulting from the pandemic were most detrimental to companies that depend on foot traffic to reach customers. Business leaders and their clients’ needs and interests underwent a significant change, and those who lacked the necessary infrastructure to adjust to the new normal were most at risk.
The survival of small Businesses needs to be more agile as experts continue to warn that a recession is on the horizon. Small business owners can adapt quickly to ensure they can keep serving their customers by implementing digital tools and infrastructure.
Digital adoption can assist small businesses in surviving in the face of global economic disruption, whether through eCommerce websites or social media campaigns. Business leaders will be more equipped to handle whatever challenges they encounter in the future if they begin developing and implementing digital strategies now.
2. Expanding customer base
The pandemic’s direct economic impact on the clients Black-owned businesses serve was one of the many reasons why they struggled to remain in operation. The majority-Black communities where many Black-owned businesses are located are disproportionately impacted by COVID-19-related illness and job loss due to economic and healthcare inequalities.
Business owners must look for novel approaches to increase their customer base. Digitizing operations can give small businesses access to new markets, which creates more substantial growth opportunities.
Small business owners can reach markets across the nation or even the world by using online advertising, cloud computing, and mobile commerce. This will increase small businesses’ success and ensure they are still operating after an economic downturn to serve their communities effectively.
3. Leveling the playing field
Regularly receiving more investment than small businesses, corporate competitors have the means to position themselves as superior service providers. Leaders of small businesses can distinguish themselves from corporate rivals by utilizing digital tools. These tools provide a more effective way to handle data analysis, marketing automation, and inventory management, leading to quicker turnaround times and better decision-making procedures.
Small businesses, especially those owned by Black people, frequently lack the resources and investments required to innovate and compete with their more established counterparts. The good news is that small business leaders are supported, especially those denied financial opportunities because of existing racial inequities.
The Small Business Digital Alliance (SBDA), one of the organizations I work with, provides small business owners with access to digital resources, training, and other opportunities to grow their digital networks and attract new clients.
Small businesses can adopt digital strategies from the SBDA’s services and resources to expand and maintain their operations for no cost to those connected to the network. As a result, small businesses may be better able to anticipate and meet the needs of their clients. Small businesses can compete on an even playing field with larger corporations by investing in digital solutions.
Although the effects of an economic crisis on our companies cannot be predicted, we can take precautions to be ready and reduce risks. Going digital has many benefits for Black small business owners who want to stay competitive in a world that is becoming more tech-driven than just business survival.