Black-Owned vs. Black-Founded Brands: Why Ownership Matters

Not every brand that starts with a Black founder stays Black-owned. Some businesses take on investors to scale, while others sell to larger corporations for expansion. Growth is important, but so is ownership. The difference between a Black-owned and Black-founded brand comes down to who holds the majority stake, makes the decisions, and ultimately benefits from the company’s success.

What Is a Black-Owned Brand?

A Black-owned brand means Black individuals have majority control. The founder isn’t just the face of the company—they lead the decision-making and keep the wealth circulating within the community. These businesses build generational power by staying independent.

Examples of Black-Owned Brands:

The Lip Bar – Melissa Butler built this beauty brand from the ground up, and it remains 100% Black-owned.

McBride Sisters Wine Company – Robin and Andréa McBride own the largest Black-owned wine company in the U.S.

BLK & Bold – A specialty coffee brand owned by Pernell Cezar and Rod Johnson, which reinvests in youth programs.

Telfar – Telfar Clemens has kept ownership of his brand, making luxury fashion more inclusive.

What Is a Black-Founded Brand?

A Black-founded brand started with a Black entrepreneur but may no longer be majority Black-owned. Investment deals, acquisitions, and corporate partnerships can shift control away from the original owner. These brands still represent Black excellence, but financial and leadership decisions may no longer be in Black hands.

Examples of Black-Founded Brands:

The Honey Pot Company – Beatrice Dixon built this wellness brand, but after bringing in investors, its ownership status changed.

SheaMoisture – Richelieu Dennis founded this haircare company, but Unilever acquired it in 2017.

Carol’s Daughter – Lisa Price launched this brand, which was later sold to L’Oréal in 2014.

Bevel – Tristan Walker created this grooming line before it was acquired by Procter & Gamble.

Why Ownership Matters

Black entrepreneurs have fought for representation in industries that have historically excluded them. Founding a company is a major accomplishment, but keeping ownership means keeping power. Decision-making, financial gains, and long-term impact stay within the community when Black-owned businesses remain independent.

How to Be Intentional About Support

1. Look beyond branding – A Black founder doesn’t always mean a company is still Black-owned.

2. Prioritize Black-owned businesses – Financial control matters just as much as representation.

3. Support brands that align with your values – Whether Black-owned or Black-founded, be intentional about where your money goes.

4. Recognize the impact of both – Black entrepreneurs continue to push industries forward, whether they hold full ownership or partner with larger corporations.

Building within the community starts with where and how money is spent. Researching ownership and supporting businesses that hold on to power is one way to make sure dollars stay in Black hands.

SPARROW’S MARKET

Welcome to Sparrow’s Market! These are the items featured in this blog post. You can click the affiliated links to purchase directly from the brands and support Black-owned businesses with every purchase.

The Lip Bar – Nonstop Liquid Matte Lipstick, Drama Queen (Deep Eggplant) 

BLK & Bold Whole Bean Coffee, Rise & GRND Premium Medium Roast, 100% Arabica Beans, 12 oz Bag

The Honey Pot Company – 48 ct – Herbal Pads for Women – Overnight w/Wings

Carol’s Daughter X Coco Gauff Goddess Strong Bundle: Hair Care Kit with Shampoo, Conditioner, Leave-In Treatment and Scalp Oil

Bevel Skin Care Set – Includes Face Wash with Aloe Vera, Glycolic Acid Exfoliating Pads, Lightweight Face Moisturizer, Helps Treat Blemishes, Bumps and Discoloration

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I’m Sparrow

Here to share storytelling history from my perspective while supporting Black-owned businesses. My goal is to highlight the richness of our culture and heritage, as well as the entrepreneurs who are driving change and empowerment in our communities. Join me as we celebrate, uplift, and grow together.

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