Hello Ladies,
I posted this article on my site and received quite a bit of feedback. What is your opinions?
....
Eliminating Excuses... Why African Americans Do Not Own Businesses
The Data
According to the 2000 Census, Blacks/ African-Americans make up just fewer than 13% of the population but only account for .07% of total U.S. household income. The 2002 Economic Census reports that Blacks own less than one half of one percent of businesses in the United States. What can we infer from this? We are a community that is working for other ethnicities that own 99.07% of U.S. businesses and make nearly $17,000 more than us on average (per household) each year. Clearly, we need to take charge of our economic environment and the first step is business ownership. Increasing our business ownership will increase the income of individual business owners, create more jobs within our community and will provide more opportunities to keep dollars within the Black/ African-American Community.
Reasons
I recently requested feedback from some Black-Market Exchange members and was given the following reasons as to why they, as Black/ African American individuals, do not own businesses:
I don't have enough money.
I don't know what I want to do.
I am not knowledgeable enough about the business itself.
I don't know where to start.
I don't have the time.
I was astounded that everyone's reasons fit into one of the five above. Are these issues legitimate? Besides #1, these reasons are not limited to the Black Community. Can one or even two of these excuses truly account for our lack of business ownership?
Responses
1. Money is not the reason that you do not own your own business. Money may, however, be the reason that you do not own your dream business. Was your first car your dream vehicle? Why not work your way up to your dream business? Use a smaller business to acquire knowledge of basic business principles and use the newly generated income to fund your future business. You will have business-building experience and a portion of the monies needed when it comes time for you to apply for a loan (if necessary). There are many businesses that can be started for as little as fifty dollars. Two great options- a network marketing business or a web-based storefront. For more information about these two options, see #2 below.
2. Do you want to own your own business, but have no idea what you want to do? Ask yourself what you enjoy and then go from there! Sell items or provide a service that you would find of value. If you would like to sell an established product and follow a proven business model, try a network marketing company. The great thing about network marketing is that training opportunities are plentiful and start up costs minimal. Just make sure that delusions of grandeur such as luxury cars or timeshares are not the reason that you choose this option. For reputable network marketing companies, visit the Direct Selling Association's website. Find a company that offers a service/ product that interests you and then join!
To start a web-based storefront, simply purchase a domain name (usually around $10- $30/ year) and subscribe to a basic domain manager such as Yahoo. Find vendors whose merchandise you would like to sell. Vendors should provide you with product pictures. Add links between your sites and ta-dah! You have your own store without having to keep any inventory. For added profitability, advertise with web sites that will increase your "traffic". Black-Market Exchange does provide both complimentary and fee-based services. Other affordable options are Google or Yahoo pay-per-click.
3. Were you born with the knowledge needed for you to perform your current career? Of course not. In fact, you had to set aside training time for each new position. Why not invest the same effort in your own business? The first thing that you will need to figure out is what kind of licenses/ forms will be required for your business. At the least, you will want to fill out an assumed name certificate to reserve your business' name. In Houston, you can do this at your County Clerk's office.
4. Start small. One member replied that she wanted to be a fashion consultant. She could start off dressing four or five friends, making sure to take before and after pictures. Once prom time rolls around, she could advertise in the local high school paper and even hand out computer-printed flyers advertising her services for twenty-five dollars for a two-hour consultation. From this she could create income to invest in more advertising opportunities. In addition, she would have a proven record of clientele. The trick is to be creative and not be afraid to network. Develop a clear-cut vision and then figure out what you can do to build to that vision. You want to own a lawn service? Start off by cutting your neighbors' lawns. Want to own a boutique? Begin with an online mall.
5. Make time. Not all businesses are time consuming. At the same time, you get out of a business what you put in. Can you afford two hours a week? If so, there is a business out there that you can invest that time in. Ten hours? Find a business that can be profitable with a ten-hour commitment.
Eliminate Excuses
Today is the day that we rid ourselves of excuses and invest in our financial freedom. If you are willing to start small, you will have the opportunity to build big. If you can read this article, you can start your own business. Forward this information to friends and family to encourage them as well. Together we can create a community of wealth. Take one hour to investigate some of the links/information above. Make a conscious decision today to be a business owner.
Crystal Washington
Owner/ Administrator
Black-Market Exchange
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For those who need to purchase a domain name Godaddy.com has a $0.99 special going. Use coupon code 99INDY but at checkout you must change the two years they automatically put in the cart to one year or you can't use the coupon.
We need to stop repeating negative data about us with out doing our homework, just because some one put in print does not make it true. Ex. Black women are the largest group on welfare. False. Since the inception of welfare,Aid to families with dependent children etc. the largest group was, is and always will be (especially if you add white hispanics) white women.
So we need to stop beating up on ourselves, the rest of the world including other Brown and Black people do that enough without our aiding the cause.
You forget my dear that we had a Black Wall Street in Oklahoma that the Oklahoma air national guard bombed. This was the first time bombs were dropped on US soil, not the World Trade Center. Also, throughout history Urban Renewal has been used to bust up Black communities that were coming together and creating wealth through shopping with each other. Unfortunately, the more educated we became the more anti us we became. Our high income folks lived in our communities prior to the Civil Rights Era, so kids had someone other than the drug dealers to look up to. After the Civil Rights era it became fashionable to be the first Black in your surburan community. Many who like Justice Clarence Thomas went through the door of affirmative action and did their best to close it behind their own little clique.
We went into the period of who you worked for was more important than who you were. We saw this manifest in Detroit for many years. That's why the recession may be a blessing in disguise for Black people. The recession is forcing us back into small businesses which are the backbone of America anyway. Other groups are circling the wagons working with and patroning their own, its time for us to put mistrust aside and do business with each other wherever we are.
I watched this online video and found it very informative. Thought I would pass along a good thing. This training is for anyone who either has their own business and wants to increase their online presence or desires to learn how to have an internet business. I guess this webinar is free til Sat. 9 pm only.
To check it out, go to:
SheilaSherman.MarketingMerge.com
(I get some perks for referring friends. But the webinar is free and lays the groundwork for having an online business. )
I really enjoyed reading this article. In many ways, it fueled me to do better. It's sad that these are the common excuses but they CAN be overcome. We all have GREAT potential and we also have such great spending power. You're right. Why NOT own the businesses to put the money back into our own communities. It IS possible! So encouraging...Thank you!
I enjoyed this article, Crystal, but I feel as if you start with statistics and then funnel down to individual anecdotal reasons given by a few individuals from a small group of responders.
There are those reasons why AAs own so few businesses on a personal level, but there are cultural, social and economical reasons why Black-owned business are so few in America. In addition to the historical records that have not supported equal opportunity and education in this country, the black community (and this is my opinion) has not had protected rights until around 40 years ago.
Without the protections of human liberties, it is impossible to secure economic independence and entrepreneurial growth. With only 40 years of legislated protection, it is no wonder that these numbers are so low.
I applaud your efforts to tackle the personal reasons given to you for low business participation.. I believe you did a fantastic job! However, I feel it is an ongoing battle to change perceptions, improve laws, secure enforcement of these laws and create a larger pool of resources that will eventually turn this tide.
"Without the protections of human liberties, it is impossible to secure economic independence and entrepreneurial growth"
But what do we make of people such as William Leidersdorf, who was Americas first black millionaire during the antebellum south or Madame CJ Walker. There were loads of successful black entrepreneurs in the south during an era where there were active lynchings, night rides, and possibilities of becoming a slave just by being in the wrong place at the wrong time. They had no human liberties.
In my opinion (and I really am going out on a limb with this honesty) a lot of progress was hindered with integration because of the colonized mentality of people who as soon as they were able to patronize white establishments, they left their own thinking that it was inferior. Being multiracial, trust me I am wholeheartedly for integration and diversity. However, there are some people who see their own and would rather not support them in business endeavors.
I remember growing up on long Island, in a section where a black family set up a store, a beauty shop, a barbershop and unfortunately, a liquor store. It was a lot cheaper than the two neighboring stores with were owned by two different Israeli families. Yet, there were people in the neighborhood who wouldn't patronize them. They were known as "the black store" and people would make disparaging comments about it. Did I got to the store? Yes, because that was where all of the good candy was and in fact, that is what kept them open for many years, the kids in the neighborhood, not the adults.
There is also the issue of a little too generous when we do have businesses. Culturally, we love to share which often is not a good idea when having a business. My cousins opened a restaurant in 1983 called momma cilles, which was a soulfood restaurant. We closed after two years. Why? people giving out generous portions of the product, workers eating the products for lunch and not paying, all while friends and acquaintances stopped in for "hookups."
I think some of the burden falls on us, in many ways, No?
Replies
Now , what's your excuse. :)
Michelle
We need to stop repeating negative data about us with out doing our homework, just because some one put in print does not make it true. Ex. Black women are the largest group on welfare. False. Since the inception of welfare,Aid to families with dependent children etc. the largest group was, is and always will be (especially if you add white hispanics) white women.
So we need to stop beating up on ourselves, the rest of the world including other Brown and Black people do that enough without our aiding the cause.
Ok, now I've stepped off the soapbox.
We went into the period of who you worked for was more important than who you were. We saw this manifest in Detroit for many years. That's why the recession may be a blessing in disguise for Black people. The recession is forcing us back into small businesses which are the backbone of America anyway. Other groups are circling the wagons working with and patroning their own, its time for us to put mistrust aside and do business with each other wherever we are.
OK, Michelle stepping off her soapbox now. LOL
To check it out, go to:
SheilaSherman.MarketingMerge.com
(I get some perks for referring friends. But the webinar is free and lays the groundwork for having an online business. )
Enjoy!
Sheila
There are those reasons why AAs own so few businesses on a personal level, but there are cultural, social and economical reasons why Black-owned business are so few in America. In addition to the historical records that have not supported equal opportunity and education in this country, the black community (and this is my opinion) has not had protected rights until around 40 years ago.
Without the protections of human liberties, it is impossible to secure economic independence and entrepreneurial growth. With only 40 years of legislated protection, it is no wonder that these numbers are so low.
I applaud your efforts to tackle the personal reasons given to you for low business participation.. I believe you did a fantastic job! However, I feel it is an ongoing battle to change perceptions, improve laws, secure enforcement of these laws and create a larger pool of resources that will eventually turn this tide.
But what do we make of people such as William Leidersdorf, who was Americas first black millionaire during the antebellum south or Madame CJ Walker. There were loads of successful black entrepreneurs in the south during an era where there were active lynchings, night rides, and possibilities of becoming a slave just by being in the wrong place at the wrong time. They had no human liberties.
In my opinion (and I really am going out on a limb with this honesty) a lot of progress was hindered with integration because of the colonized mentality of people who as soon as they were able to patronize white establishments, they left their own thinking that it was inferior. Being multiracial, trust me I am wholeheartedly for integration and diversity. However, there are some people who see their own and would rather not support them in business endeavors.
I remember growing up on long Island, in a section where a black family set up a store, a beauty shop, a barbershop and unfortunately, a liquor store. It was a lot cheaper than the two neighboring stores with were owned by two different Israeli families. Yet, there were people in the neighborhood who wouldn't patronize them. They were known as "the black store" and people would make disparaging comments about it. Did I got to the store? Yes, because that was where all of the good candy was and in fact, that is what kept them open for many years, the kids in the neighborhood, not the adults.
There is also the issue of a little too generous when we do have businesses. Culturally, we love to share which often is not a good idea when having a business. My cousins opened a restaurant in 1983 called momma cilles, which was a soulfood restaurant. We closed after two years. Why? people giving out generous portions of the product, workers eating the products for lunch and not paying, all while friends and acquaintances stopped in for "hookups."
I think some of the burden falls on us, in many ways, No?
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