Background Information

Digital Marketing and the Minority Entrepreneur

Carolyn D. Mack, D.B.A.

Senior Consultant, TaylorMcKiney Strategies

Digital Marketing and the Minority Entrepreneur

The advent of smart technology has changed the way that the world operates. While the Internet was the impetus for the Internet super-highway, the development of intelligent technology has made a significant impact on the traditional ways of conducting business (Jones, Borgman, & Ulusoy, 2015). Kuhn & Maleki (2017) also noted the influence of technology in the development of the gig economy, freelancing, small business and entrepreneurial ventures. This influence is consequential in the development and financial stability of business models going forward. This case study examines how minority entrepreneurs may be missing the opportunity to leverage this digital space to monetize their businesses.

The minority business owner and entrepreneur are vital to sustaining local neighborhoods and communities. Their roles in communities bring us together with everyday ethics understandings and relationships. Unfortunately, minority entrepreneurship in the United States has grown a mere 0.5% between 1996 and 2015 (Bates, Bradford, & Seamans, 2018). Shelton and Minniti (2018) noted that this slow growth of minority businesses often stems from lack of education, poor access to information, and minimal resources. These educational, access, and support challenges, along with discriminatory business networking practices, are inherent in the traditional ways that minority businesses conduct business. The social programs designed to enhance the visibility of minority businesses are often inherently biased and neglect the duty of increasing visibility and viability of minority business owners. While these programs make a minimal impact on minority entrepreneurial ventures, the bearing of the failure to improve minority entrepreneurial expansion is evident. Minority business growth and expansion is incumbent upon the business owners to find a way to grow the development of business opportunities to match that of non-minority counterparts. Doing business in the digital space is fast becoming the equalizing phenomenon.

The Internet of Things is a place where minority voices, ideas, and companies are found, sought out and advanced more equally than ever before. Digital entrepreneurship is on the rise, and social media marketing is the reasons why. Internet technology and the arrival of social media have disrupted the former ways in which people exchange information. Professional networks and software platforms and apps now allow people to exchange in-person meetings with virtual collaborations (Jones et al., 2015) Social media as well will enable people to connect personal moments and interactions from around the world as if they are in the same room. Jones et al. also noted that while these platforms are increasing interactions among people around the world (82% by Facebook alone), 77% of small businesses are still slow to harness the value of such platforms (Alford & Page, 2015; Jones et al.). Seventy-seven business owners out of 100 do not use social media.

Using Jones et al., estimated percentage of minority businesses in the United States (8.9%) to extrapolate the number of minority business owners not utilizing social media marketing is a staggering 6.8%. Put another way, seven of nine minority businesses are not harnessing the Internet and social media to market their businesses. These businesses are not searchable on the Internet. The services and products they sell are searched for thousands of time a day on Google, Facebook Recommendations, Yelp, and Bing using Internet technology. These business opportunities are going to other business owners. Traditional marketing tools are being replaced by smart technology marketing that can carve out specific niches for a business to serve. The companies that harness the power of this technology are exploding their businesses by marketing to individuals seeking the service that you provide instead of spending money targeting everyone and missing your target audience.

There are some barriers to technology that preclude business owners, minority or not, from venturing out into digital marketing. Jones et al. (2015) identified the reasons that business owners identified for slow entry into the digital marketing space are: a) lack of time, b) no technical know-how c) discomfort with web-based technology and d) too many social media platforms to manage. The same barriers to entry for minority businesses into the entrepreneurial space continue to exist when considering the digital space and marketing. These barriers are skills, training and access (Bates & Bradford, 2018). Overcoming these barriers and increasing abilities to utilize the Internet and digital marketing to start, grow and scale minority business is mandatory if these businesses are to remain self-sustaining, socially impactful, and viable businesses. The Internet is the one place where a business owner can learn to grow a business while building a business.

Growing a small business through social media marketing is especially useful because of the ability of the Internet to find specific, targeted people for your business. Facebook groups are a perfect example of how people with similar likes, dislikes, situations and passions can find each other around the world. Using social media tools and algorithms that are built into the platform allow businesses to locate, target and interact with their ideal client. The interactions between you and those in your tribe build trust and share expertise. This type is the same rapport that was, in times past only developed by in-person contact. Now, your one-to-one customer development can extend to a one-to-many reach. Social media increases the potential of a business owner to locate and serve an optimal client.

Minority businesses are the cornerstone of local communities. These business owners’ survival is contingent upon providing services to those who need them. Without the expansion of the marketing plans to a digital concept, many minority businesses may not survive. Overcoming the barriers to the Internet and social media marketing and learning to harness this marketing vehicle is a pivotal step in specifically increasing the longevity of minority businesses and local communities in general.

Alford, P., & Page, S. (2015). Marketing technology for adoption by small
business, The Service Industries Journal, 35, 11–12. doi:10.1080/02642069.2015.1062884

Bates, T., Bradford, W., & Seamans, R. (2018). Minority entrepreneurship in twenty-first century America, Small Business Economics, 50, 415–427. doi:10.1007/s11187–017–9883–5

Jones, N., Borgman, R., & Ulusoy, E. (2015). The impact of social media on small businesses, Journal of Small Business and Enterprise Development, 22, 611–632. doi:10.1108/JSBED-09–2013–0133

Shelton, L., & Minniti, M. (2018). Enhancing product market access: Minority entrepreneurship, status leveraging, and preferential procurement programs, Small Business Economics, 50, 481–498. doi:10.1007/s11187–017–9881–7

Related posts:

Here I am wrapping up 2022 with my perspective on trends for Telecom Industry for 2023 and beyond. I strongly believe these are prominent and will be pursued actively in the industry at different…