Conclusion and Recommendations
As Atlanta continues its current trajectory of large-scale growth, it is critical that policymakers prioritize systemic solutions that remove the barriers that Black-owned small businesses face. Our conversations with Atlanta’s Black business owners illuminated how business ownership is a vital part of their wealth-building journey. Moreover, this brief demonstrates the deep connection that business owners have to their own neighborhoods and the important role that Black businesses can play in bolstering economic well-being at the neighborhood level.
However, the sustainability and growth of Black-owned businesses face considerable challenges, primarily because of the rising costs of commercial spaces in rapidly gentrifying neighborhoods. The commercial affordability crisis is a pressing issue that threatens to displace legacy Black businesses, thereby eroding the social and economic fabric of Atlanta’s historically Black neighborhoods. As commercial rents soar and the availability of suitably sized and priced retail spaces dwindles, Black business owners are increasingly at risk of being priced out of their neighborhoods. This displacement impacts not only the businesses themselves but also the broader community that relies on them for essential goods, services, and social cohesion.
To safeguard the invaluable contributions of Black-owned businesses to neighborhood well-being, the City of Atlanta’s placemakers, policymakers, philanthropists, and others in the capital and community development ecosystem should pursue the following recommendations:
1. Launch a vacancy tax that will deter unscrupulous investors from purchasing property with limited intent to activate property. As neighborhoods across the city benefit from increased interest from developers, some property owners find it advantageous to hold onto space that would serve as a potential home for small business owners. A vacancy tax, a percentage of the assessed property value, on landowners who allow their commercial properties to remain vacant for extended periods will incentivize the creation of affordable space.
2. Dedicate public funds to support commercial tenant rental assistance.
To support the sustainability of Black-owned businesses in Atlanta’s historically Black neighborhoods and promote neighborhood well-being, the city should establish a Commercial Tenant Rental Assistance Program. This program would provide direct rental subsidies, capital improvement grants, and lease negotiation support to Black-owned businesses struggling with rising commercial rents. Funded by municipal funds, the program would prioritize businesses in historically Black neighborhoods and those demonstrating financial need.
3. Partner with local mission-driven developers to develop smaller retail space and community-owned real estate. The current market availability for retail space often offers too large a footprint for small business owners. This challenge can be addressed by working with local developers seeking to develop small land plots. Their mission-driven and community-based approaches align more closely with residents’ perspectives within a given neighborhood. This can enable the construction of micro-retail spaces and mixed-used developments that offer more affordable commercial space for entrepreneurs.
4. Enact a legacy business program to support historically Black commercial corridors. Businesses that have served residents for decades are pillars of the community, provide vital resources, and help retain cultural significance. Anchor institutions of 15 years or more can be supported through this program, which may offer landlords subsidies to keep long-term businesses in place, provide marketing and technical assistance, offer grants for renovations, or more.
5. Establish a strong resource navigator network to help local businesses discover, apply for, and secure capital. We repeatedly heard from small business owners in historically Black commercial corridors that the information for resources is limited and decentralized. Bolstering technical assistance offerings for Black-owned businesses can help address the opportunity divide business owners face when accessing capital, especially concerning tenant costs.
The findings of this study highlight the profound impact that Black-owned businesses have on the well-being of neighborhoods in Atlanta. The presence of these businesses is not only a driver of economic growth but also a crucial factor in enhancing community cohesion and child well-being. Our analysis indicates that for every additional Black-owned business per 1,000 Black residents, the Child Well-Being score increases by approximately 1.8 points, underscoring the significant positive relationship these enterprises exert on Atlanta’s neighborhoods.
In conclusion, preserving and promoting Black-owned businesses is not merely an economic imperative but also a social one. By addressing the barriers to commercial affordability and supporting the growth of these businesses, we can ensure that Atlanta’s neighborhoods continue to benefit from the unique cultural, social, and economic contributions that Black-owned businesses provide. This approach will help foster vibrant, resilient communities where all children and families can thrive.
