The Shift: Black Paper Party faces the Sharks

• They weren't permitted to discuss the outcome of the prerecorded "pitch-for-investment" competition until after the broadcast.

The big picture: Black adults made up 12.4% of the U.S. population in 2020, yet just 3% of the nation's businesses were Black-owned.

Details: Since 2020, Black Paper Party has diversified offerings to include ceramics, stockings, clothing and ornaments — about 200 items — all representing Black people.

• Hudson and Merchant point out their target market is larger than the Black population — that churches, nonprofits and adoptive parents who want to be inclusive also buy their products.
• They see potential to spread into other special occasions like birthdays, Valentine's Day, etc.

Between the lines: Growth has been dramatic. The three, who met while working at Walmart headquarters, have products in 6,000 retail stores.

• Walmart, Target, Macy's, Family Dollar, Dollar General and CVS all carry the line, though not at all their stores.

• What's next: Dollar General and Kohl's will carry a Black History Month program designed by the company next year that includes apparel, stationary and coloring books.

The bottom line: Hudson and Merchant still live in NWA. The business has been built on investments from friends and family, out of the partners' back pockets and loans.

• Yes, but: If one of the Sharks bites on Friday, the company could get an investment to help them to the next level.

Go deeper: Read why Hudson and Merchant started Black-owned NWA on Instagram.

🎁The Shift is a regular feature to catch up quick on what's happening in Arkansas' economy and entrepreneurial ecosystem.