Wow, another study on why we, Black people, suck. They just never stop coming.

hmmm

I agree with the research to an exent but most entrepreneurs of either race aren't formally educated in the fields that the sect that they have businesses in..just know how either trial and error or by taking the reigns of a family business and not trying to fix a wheel that isn't broken let alone add onto it. However, the primary reason why many black business owners don't fair well is because of either geographics, location or the fact that most blacks don't want to see one another do well and therefore, won't patronize black business owners with the same zeal as they do whites and asian owners.

Are you back, Cord?

Centers for entrepreneurship are way under utilized. They teach classes, review business plans, offer advice, etc. all for little or nothing depending on which university it's affiliated with.

I get the sense that far more black people are eager to leave corporate America. That eagerness to leave the B.S. behind likely harms us in the long run.

I agree with Ms. Toson.

I also think that in Asian/White businesses usually focus on products and services of higher demand. Aside from barber shops and hair salons, I haven't really seen any long-standing black businesses.

I agree with the article in that personal wealth and education have a lot to do with our businesses not succedding as much as other ethnic groups. In addition, I find that black business owners I know are a lot less likely to go into business with friends and family than other ethnicities due to a deep lack of trust that exists within the black community and families. This in turn leads to a smaller network of financial help during the downturns in business that almost always occur. Also personally, I believe that fair or not fair, Black owned business have a reputation for not having as good as product or service as other businesses. This is not always the case, but how many times have you had to wait for 4 or 6 hours in a black owned salon versus 20 minutes max wait in a non-black owned salon? Im just sayin

I agree with Ms. Toson on this point, 'location or the fact that most blacks don't want to see one another do well'.

I've been in black owned establishments where every black person coming in feels that they should get a discount. They use that line that we're in the same boat my brother/sister. Then if you give one person a discount they go running their mouth and everyone else is like why him or her and not me. Don't give a discount, you get badmouthed throughout the "hood".

It's a catch 22.

In addition to the lack of reasons, those of us of the post integration generation aren't encouraged to start businesses but to get an education and work for a good company. I believe its a matter of supply demand and a monopoly on the series, in the Asian community for every nail tech or chinese restaurant they also have the IT area on lock in terms of software and hardware. If we as a community picked an industry and just dominated another community with that service or focused on solid partnerships, we might be stronger

I believe that you can't look at topics like this without real world acknowledgment. Redlining still exists, particularly for black people with startups. Without capitalization, it's almost impossible to conduct a viable business. This is taking both education and commitment into account. I have experienced this, my husband has, and I've seen the opposite happen with whites with less education and less personal capital (we own our home outright, and couldn't get business lines of credit, when our white renting friends could.
As a photographer with hundreds of bylines in a very well known paper, I was regularly stiffed by white private clients, who did it because they could. Litigation is expensive and time-consuming. There is a reason why there are so few black women in photojournalism– I have even been told that it would 'insult' a white subject to be sent a black photographer. I have had white subjects who were so angry that I was assigned them, that they refused to speak to me. And so on. This is not ages ago– this is in the aughts.
The casual apartheid like this, that exists for entrepreneurial black people, is breathtaking. I won't look to the Washington Post to verify that. But I will also not always look at myself as the source of this social pathology. That is also not to say that self-examination plays no part in my efforts to improve my life. It's just that charts and indexes and comparisons don't always give the whole picture.
Cord, I find a majority of your posts about black people to be negative. I'm not taking notes, but I can usually tell when you've made a post before I read your attribution, if it has anything to do with race. I also recall your use of the vilest black pejorative on Mollygood way too often. It left me with a bad taste for your outlook.
Lauren, I am unashamedly more appreciative of your your perspective. But the same applies to this post. the numbers don't describe the game. Not wholly.

Shouldn't this study look more closely at black entrepreneurs than the black population in general? I would understand if they were talking about racially disparate numbers of business people, business majors, or what not — groups that are culled from the general pop — but business owners as a group (successful and unsuccessful) may be already notably different in education level, wealth level, etc. across the board than the general population. Business owners should be compared to other races of business owners, as opposed to non-business owners of their race.

ms. toson said:However, the primary reason why many black business owners don't fair well is because of either geographics, location or the fact that most blacks don't want to see one another do well and therefore, won't patronize black business owners with the same zeal as they do whites and asian owners.

AND

TNMEDIA SAID: In addition to the lack of reasons, those of us of the post integration generation aren't encouraged to start businesses but to get an education and work for a good company

cosign

First we need to remember that MOST entrepreneurial efforts fail. The primary issue more black businesses fail is undercapitalization and lack of preparation, not racism. Yes, there is still redlining but the money is out there as well as lots of support. As someone who has done small business financing I can't tell you the number of folks coming for money with an idea, and not a business plan, no liquid assets (Megs a paid off home is not in your favor - its not liquid and unless you inherited it paid in full, its not a very good financial move and speaks as such), insufficient capital to maintain their personal accounts - ie..having 2 years of their living expenses so they can reinvest the initial business earnings back into the business etc… and this came from every shade, but I'd be lying if most of the ill-prepared folks were brown. And don't dare suggest that someone go work for someone doing what they want to do so they can learn the business….

DivaII, I should clarify then, that we had very good to excellent personal credit, no outstanding debts, and decent savings. And I beg to differ, but a mortgage would not have been in our favor. In addition, we both held jobs that covered all of our living expenses. The white couple I am comparing us to had no real property, and poor credit histories. We were not ill-prepared, and we were credit-worthy, with histories in the industry that supported our business aspirations. We were simply raced.

To say that there still is redlining was my point.

I'd further venture that the "money and lots of support" is no longer out there, since commercial loans and venture capital have tanked for just about everyone.

But then, I'm through kvetching, and will cease my criticism of Cord. I do/did not believe his heart is/was in the wrong place.

But I will personally continue to steer clear of numbers and comps that pretend to describe us. They do not tell our stories, or even theirs.

@ MeikMeik it goes both ways. a Black owned business in my neighborhood charges on average 20-25% more for the same goods that their Asian counterparts do. i wrestle with the dilemma sometimes… support, or save money? (talking bout the dollar store y'all -where the goods are not even worth the dollar, let alone $1.25.

I disagree with the assertion that black people don't want to see each other do well. A prime example of competition between two groups: black vs. Korean beauty supply stores. Korean stores get products for less and can pass on huge savings to consumers. Why? Most of the manufacturers are Korean. Let's say you're getting microbraids. A pack of human hair at the black store might be 29.99 for something that's reasonably good. At the Korean store, a similar or even the exact hair will be sould for 17.99. 2 packs * $12 savings/pack * 6 times/year = $140+ savings on hair alone each year.

I'll say that the service is generally so-so at all the ones I've visited but if you go to a black owned beauty supply store that's directly across the street from a Korean one, you'll get the so-so service. If you go to the Korean store, they will bend over backwards and give you discounts on top of the huge savings. As much as many would like to support The Cause, at the end of the day, the deciding factor will be costs and in some areas like beauty supply, black owners can't compete on cost at all. Throw in the increasing popularity of Dominican hair products and black entrepreneurs in this area are being squeezed out. I love the concept, but I'm not about to drop some major money on a bunch of Carol's Daughter and Miss Jessie's. If they're so damn natural, I'll go to Whole Foods and get the ingredients to make them myself! The nerve to charge people $30 for some $5 goods

I own a black business: http://www.theblackerotic.com

Aside from the shameless self promotion, I think that this study is not too far off base. In addition, I also think that lack of genuine biz support in the black community also contributes as well as for some businesses the inability to expand beyond the black customer.

I have done a lot of ecommerce and marketing consulting, many for smaller business start-ups by black folks. Some, not all come with no concept of understanding market trends, target market, marketing mix, forcasting let alone a business plan. Or they don't want to spend any money. Now I'm creative, but dayum! And atop off all that, most of the time they want some type of special deal/discount.

I also agree with Daria 100%, there are so many resources out there to be used, there is money to be had…but for anyone to give you the money, they got to feel like they are making a good investment.

Now buy some sex toys!

RE: "However, the primary reason why many black business owners don't fair well is because of either geographics, location or the fact that most blacks don't want to see one another do well and therefore, won't patronize black business owners with the same zeal as they do whites and asian owners."

I have one too many stories of sub-par quality service. Sure this happens in ever race…but I'm just saying!

The Lack of education is displayed on this board.

My mother owns two florists in Westchester county and has a problem getting clients, weddings, corporate accounts because of who she is, period. It becomes frustrating because while we provide the best products, most competitive prices and have marketed aggressively. We get a very cold response. My mother has even had the phone hung up on her from time to time.

She puts me to talk on the phone because of my vocal tone. She has a Jamaican accent and people automatically retreat.

This study was not effective because how do they not know that

1. The entrepreneurs in the black community are mostly educated. They are going with the number in a population versus those who are actually in the business. I know of Asian and white owned businesses where the people have had the business for years and decided not to go to college. My mother has a degree, my father has a degree, our head florist who is black has a B.A. in design and a Masters in Business. I have a degree from Columbia in Entrepreneurship.

Megs,

Thank you. Redlining is real.

I love how everyone jumps to most negative thing when it comes to blacks. I have found it to be a pattern on these boards. It is a testament to our internalized racism. The same way that you guys can crap on other blacks is the same way that black people have problems supporting one another. We have a negative outlook on ourselves and we feed into every ounce of propaganda that is delivered.

Lauren, I hear you but there are also studies that have come out that show that blacks are making progress in many places but they fail to receive attention. People dwell on the negative. So it looks like things are horrible and not improving anywhere but they are in some places. I will suggest to look in other places for studies as well as the corporate owned and also redlined mainstream media.

P.S. Sorry for any possible typos=)

^^^cosign

I think there are some important components and compelling arguments on the diverse race business structures. I do believe times have changed to where financingor investment opportunities have opened up to all minorities. However, racism still do exist. Also history has taught us that the white male figure will do absolutely almost anything to generate income no matter how demoralizing or unethical. What matters to the white male is bottom line, period! Although, since the Enron scandal crackdown more and more student books are focusing on ethics. The hypocrisy of the European (White) race in some areas are also beginning to dwindle. Not saying that these issues do not exist in any other race, but seems to be more predominant in whites. Next, African-American women businesses are probably going at a much faster rate than any other. The A-American female are more educated, well-prepared, have a clear drawn out objective. As a member of a local chamber, I have seen several African-American men come in for a start-up loan vs the African-Women and the women's proposal 80-90% better than he counterpart. These are just a few elements that should be addressed as well.

Also research into the business of choice is lacking in starting up a businesses for the African American male. I must say the African-American female has found what it takes to be successful and the male is slow to adjust. Why? I think this should be explored more!

Also research into the business of choice is lacking in starting up a businesses for the African American male. I must say the African-American female has found what it takes to be successful and the male is slow to adjust. Why? I think this should be explored more!