The latest statistics from the Department of Commerce show Black
business start-ups are on the rise. The count now exceeds 850,000. On
the surface, this increase in the number of Black-owned businesses from
1987, when the number was purported to be approximately 425,000, makes
for good copy in the newspapers and other publications. It even makes
many of our people feel good about our progress in business development.
However, the complete story is not apparent merely by looking at the
number of Black-owned businesses. We also must look at the revenues of
those businesses.
In 1992, when an increase also was recorded, the interesting small
print disclosed by the Department of Commerce indicated that 56 percent
of the 627,000 Black businesses reported then had annual revenues of
around $10,000. The USA Today newspaper recently reported that
just 20 years ago, Black-owned businesses led other ethnic groups in
revenues. Now, in 2002, Asian businesses lead the pack with $336,000 in
revenue annually, followed by Hispanic businesses with $155,000, and
bringing up the rear are Black-owned firms with a meager $83,000. I say
it again: Black people have an annual aggregate income of nearly $600
billion, yet our businesses have annual revenues of $83,000. You do the
math.
We have come to be content with mere numbers when it comes to
Black-owned businesses. The larger the number grows, the better off we
are made to feel about our situation. But aren�t revenues more
important, or at least just as important, to Black business as how many
businesses there are?
The success of Black business must not only be couched in numbers,
which are still far lacking, relative to our approximately 40 million
citizens. Black business also must be associated with growth. Too often,
we talk about the survival of Black-owned businesses, neglecting to
acknowledge the fact that unless a business grows, it will not survive.
So what we need in this country is not only an increase in the number
of Black-owned businesses but different kinds of businesses, especially
those upon which we depend for our sustenance, i.e., supermarkets. We
need business growth, business support, training and education,
investment funds, partnerships, alliances, cooperatives, and control of
vertical business chains within industries that Black folks dominate.
We must also have a distribution system that we can control and not
be subject to the whims, greed and unfairness of non-Black distributors
who realize that if we obtain distributive control of our products, we
will be well on our way to economic freedom. And guess what, brothers
and sisters? That�s just what like Claud Anderson, Al Wellington and Ken
Bridges, co-founders of the MATAH Network, have been telling us for
years.
Everyone should know by now (the proof is before our eyes everyday)
that jobs are steadily disappearing, or at least leaving this country.
We must be job makers in addition to job takers. We must instill in our
children the entrepreneurial spirit, which will give them the security
of knowing they can take care of themselves and not have to depend upon
the largess of government or layoff-prone corporations.
Let�s get busy. Catch the spirit of entrepreneurship. Our ancestors
will be proud, and so will our children.
(James Clingman is leading an effort to open a new entrepreneurship
high school in Cincinnati, Ohio. Scheduled to open in September, the
school will prepare students for college and provide foundational skills
and knowledge in entrepreneurship. He can be contacted at (513) 489-4132
or [email protected].)