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Why are Black dollars leaving the Black community?

"African Americans have over 700 billion dollars available to spend as they please. The most they spend with Black business is only 6-7%. That's a major problem. That means 93%-94% of the money that Black people earn (income) is being spent with someone else (outgo). Some else is getting the "lion's share" of our money.

Other ethnic groups spend money with THEMSELVES 3-6 times before their dollars leave their communities. Black people only 1/2 a time. There's something wrong with that picture."

-from www.nbbta.org

So why Do You Think we have this problem and what are some viable solutions?

Tags: bbwo-entrepreneurship, bbwo-small-business-talk

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Permalink Reply by Debbie Kicklighter on February 20, 2009 at 12:51pm

Good Morning,
Most Black customers with the big dollars want Quailty customer service,beautiful surroundings
Most Black Businesses are not freindly or favorable to their own people
Most are so High mined customers are uncomfortable in their places
Because rents for Black business are sometimes high produces and services are 3 times higher
Black Business owns want Big money rather the working relationship with their community.
If we would look at our Jewish Business men and women they make sure the the people of
their communities, young and old are taken care of first giving favor to one another to grow.
We have to favor each other and be kinder to our customers they will spend.

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Permalink Reply by Leslie on February 21, 2009 at 5:50pm

It seems to me based upon the replies to this post that a huge problem is that many otherwise educated African Americans have internalized racist stereotypes of black business, and are making no attempt to look for GOOD black businesses.

Black businesses need to a) diversify and b) develop a business community to get the word out so that people can make a conscious decision to buy their products.

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Permalink Reply by Zhana on April 13, 2010 at 8:26am

I completely agree with you, Leslie, we have internalized racist stereotypes. I have talked about this a lot in my Why We Need to Heal series of articles.

However, even when we look for "good" Black businesses, we unfortunately do not always find them.

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Permalink Reply by Author Patricia Yarbrough on February 22, 2009 at 10:53pm

We don't believe in each other, we find fault with our own color. If we make a mistake we are grounded for life. Some of us were brought up believing white is right.
It's a lot of dream haters toward African Americans so sad.
People don't believe in you, because they don't believe in themselves.
We are so busy worrying about somebody have more than you.
The solutions is start today patronizing our own.

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Permalink Reply by Zhana on March 3, 2010 at 7:43am

This is such an important topic. I talk about this more at Why We Need to Heal Part 3.

I really don't think this is about economics. It's about our mindset.

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Permalink Reply by Shay Olivarria on July 13, 2010 at 1:35am

Several reasons:

- We don't have many businesses.
- The businesses we have aren't diverse.
- Many businesses don't offer good quality of goods and/or good customer service.
- We have been trained to not deal with others in our community and ASSUME that those businesses are inferior.

Of course, this is a complex topic with many angles, but these are the largest challenges I see.

PEACE,
Shay Olivarria
Author, 10 Things College Students Need to Know About Money

www.BiggerThanYourBlock.com

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Permalink Reply by Darlene on July 13, 2010 at 11:26am

I totally disagree with quite a few responses. Especially that we don't have many businesses. That is not true there over 1 million Black owned businesses and that does not include home based businesses/entrepreneurs. We do have a large diversity of businesses. There is a Black-Owned Computer company in Arizona. A Black Board game was created by a Black genius from California that let's four players play chess or checkers together. A company that makes luxury men's underwear. Plus all of the hair care, bath and beauty products that are really made by Black manufacturers(not by Avon, or Revlon, etc.). There is a soap/lotion manufacturing company in the Atlanta area that is Black owned. So sorry if I went off on you my sisters, but it really bothers me when I see so many people say there are not that many Black businesses.

The one thing that I do agree with you on the mind set of quite a few Blacks have been trained to assume that Black businesses are inferior and have lesser quality products. I believe that was by design, because if so many didn't have that mind set why would Wal-Mart build another mega-super-store near our lower/middle class neighborhoods?

That is why I am so honored to have met the co-founders of the Black Business Network in Atlanta. They are creating a universal market-place for Black products/services.