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How Spending At Black-Owned Businesses Can Help Reduce Black Unemployment

Posted: 03/ 7/2012 12:02 pm

The recently observed Black History month presents the opportunity for individuals worldwide to focus on the accomplishments and contributions of Black citizens in America. Often, this focus is directed at the heroic efforts of men and women who led and participated in the civil rights movement and who were the "first" African Americans in a specific endeavor. There also has been significant work done on the magnificent contributions of men and women who were behind the scenes in the civil rights movement. Without the support of these unsung heroes and sheroes, the civil rights movement would not have been as successful as it was, and all Americans are indebted to these individuals who moved this country closer to the ideals that the movement espouses.

However, on the heels of the most recent Black History Month, I would like to take a slightly different approach. Many Black communities are suffering from unemployment, underemployment and many other negative economic indicators that impact the quality of life for individuals living in these communities. Given that recent models of economic transformation do not appear to be yielding the desired results for Black communities, maybe it's time to re-evaluate some historical perspectives on how best to bring economic prosperity to Black communities.

According to James Clingman Jr. in a 2010 article titled "Buying Black - the Ebony Experiment," there is $850 billion moving through Black consumers' hands each year, with 90 percent of that amount going to businesses owned and controlled by non-black businesses. That is a vast amount of revenue that never makes its way to the African American community. Could there be a connection between the economic health of a community and the amount of money spent in the businesses within that community by its residents? Examples of successful ethnic enclave models around the country suggest that, at some level, residents within a community do indeed economically enhance that community when there is a significant amount of patronage of local businesses. Given the severe poverty and bleak economic reality found in many Black communities, it might make sense to examine the strategies that parallel this concept and helped produce, according to Juliet E.K. Walker's The History of Black Business in America, the "Golden age of Black Business From 1900-1930."

This sounds like the "double duty dollar" concept from the early 1990's! The double duty dollar concept states that if Black consumers buy goods and services from Black-owned businesses, the dollars spent have a doubling effect: the spending power of the dollars being transferred from the Black consumer to the Black business owner. This "doubling" effect creates an additional flow of capital within a community that has significant impact on new opportunities, jobs and local businesses. Does this strategy have relevance in the current efforts to revitalize African American communities throughout the country? If Clingman's math is correct, there is $765 billion spent by Black consumers that never touch Black business or the Black community. Perhaps the reduction of the 90 percent "dollar flight" from Black communities could be a significant catalyst to improve the quality of life and economies in Black communities throughout the United States.

John and Maggie Anderson examined this question with their "Ebony Experiment," which consisted of a year-long commitment to purchase all of their goods and services from Black-owned businesses. Can this double duty dollar concept be revisited or should it even be considered? There are numerous ethnic enclaves throughout the country that do a high level of business among community members. Many of these communities have healthy local economies and understand the importance of supporting businesses located where they reside. However, for this concept to have any traction in Black communities, businesses have to provide quality services and products as well as creatively integrate themselves in the community. Sponsorships, mentoring, leading community improvement projects and philanthropic activities are just a few innovative ways businesses can be a value-add to a community. This is important because community, consumer and business must all get value for their efforts in this concept of reciprocity.

This is not to suggest that Blacks only buy from Black-owned businesses. Also, it is not realistic for African Americans to make all their purchases from Black-owned businesses. America should be a country where goods and services are consumed from businesses that provide the highest quality and value regardless of ethnic origin. Still, any percentage of the $765 billion spent outside of Black communities could make a significant impact on some of the economic issues currently facing many Black communities. At the end of the day, what is good for Black communities, and all communities of color, strengthen the American economy and allows the United States to remain globally competitive. Therefore, in the spirit of Black History month, maybe we should take a minute to examine current problems through a historical lens and look at the solutions that have been offered by some of the great minds of the past. Perhaps these voices can inform us of how to best proceed in the times we now face. As Edmund Burke warns us, "Those who don't know history are destined to repeat it."

 

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The recently observed Black History month presents the opportunity for individuals worldwide to focus on the accomplishments and contributions of Black citizens in America. Often, this focus is direct...
The recently observed Black History month presents the opportunity for individuals worldwide to focus on the accomplishments and contributions of Black citizens in America. Often, this focus is direct...
 
 
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11:20 PM on 03/12/2012
Maybe it should be a law that everyone has to shop at a black own business 15- 20% of the time (even if they don't have what you want). That would be affirmative action at its finest!
08:05 PM on 03/12/2012
people should spend there money were ever they want,groups should not be trying to persuade them what to do.this is America stop trying to divide everyone into groups
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Jerry Villano
American Patriot
03:08 AM on 03/12/2012
there is nothing wrong with purchasing services and products in your own neighborhood..whatever the dominant race or ethinic group that is there! the article has a point...but there are few black owned businesses in the black communities. Lack of funds, experience, fear and motivation is a factor! many in the black community fear going into business as many areas are not very safe. I have worked and noticed how Asians & middleastern of all ethnic backgrounds largely fill that void and risk their lives to provide services and products for the convience of the people who live there. There is more to factor in then just painting a picture that it is the answer too developing a people into a different strata of society..there is many more factors...such as education, crime, violence and all the things that keep business away.
11:36 PM on 04/26/2012
" I have worked and noticed how Asians & middleastern of all ethnic backgrounds largely fill that void and risk their lives to provide services and products for the convience of the people who live there."

Let's be honest here. Are they "risking their lives to provide services and products" or are they capitalizing on low rents and a divided, insufficiently conscious community to fund their children's college education?
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airsyspro
Obama; aka, Snoopdog
08:05 PM on 03/11/2012
If a business provides a a good product at a good price with good service, it will be successful.

This is America where anybody has the opportunity to succeed!

The color of the owner has nothing to do with it.
08:41 AM on 03/11/2012
A Black owned bus.pretty much funded by theTaxpayers .....
11:37 PM on 04/26/2012
How? Let's hear some facts.
Billybladerunner
Is this thing on....
11:01 PM on 03/10/2012
How Spending At Black-Owned Businesses Can Help Reduce Black Unemployment


Are you effing kidding us with this .....seriously ?....


The best way to lower black un employment is for blacks not to vote for Obama just because he's black.....

Do whats right for America and un employment will drop for peope of all color......
05:59 PM on 03/12/2012
AMEN
11:31 PM on 04/26/2012
I think if you were so committed to lowering black "un employment" [sic] you'd come up with something a little less lame and self-serving. How many people were ready to vote for John McCain because he WASN'T Black? Save your lectures for them.
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Badforamerica
03:01 PM on 03/10/2012
Just imagine if whites said shop at white owned shops! America has gone back years under Obama!!!!
11:29 PM on 04/26/2012
Whites already shop at white-owned shops. There's no need to actually say it, is there?
09:52 AM on 03/10/2012
How spending at a white owned bussinesses can help reduce white unemployment . I didn`t own slaves . What up with the color thing again ??
11:54 AM on 03/09/2012
It is sad to say, but many Black owned business have poor customer service. That's been my unfortunate experience, much too often. I have been greeted with "attitute", not thanked for my purchases, and treated as if I'm a bother, when asking questions. Some will even attempt to argue with the customer. Unanswered phone during stated business hours and not opening on time are other problems I have encountered. Many Black owned businesses fail....that's a fact. It's not a coincidence. While, good customer service isn't the only key to a successful business, it's certainly an important key. Any thriving business has a good reputation and repeat business.

I have tried to support my fellow Blacks, and will continue to do so, but if I encounter any of the above scenarios, I either leave without purchasing, or I never return. We need to understand, when customers shop at a place of business...you are not doing them a favor. Their dollars help keep you in thriving business. No one is selling anything that can't be purchased elsewhere. I take my dollars to businesses that offer good customer service and treat customers with respect.
joyceches
If you don't like the vote, just walk out!
04:35 PM on 03/10/2012
Well said!
08:44 AM on 03/11/2012
Dont forget to support all White owned bus.to lower unemploymentamong whites.
12:47 AM on 03/09/2012
Why are we not past the race issue in America? Why can we not just be Americans 1st and foremost?
joyceches
If you don't like the vote, just walk out!
04:38 PM on 03/10/2012
I don't have an answer to your question but I will tell you this....the next time I get my drivers liscense renewed I will be insisting race be filled in as European American!
12:21 PM on 03/08/2012
Although it claims otherwise this article does, indeed, advocate that Black people buy things from companies owned by other Black people and, de facto, avoid White owned businesses. This is specifically racist.

On the other hand, it may be a good idea if you cast aside the civil rights laws and think in terms of what's good for Black people. Liberal solutions have not necessarily been to Black advantage. The idea that nothing you do is right without a white person sitting in the next chair should be insulting, but it's the law. Being able to hire who is good for your business, your community and your culture ought to be an option.

Some of the provisions of the Civil Rights laws need rethinking in consideration of what we now know and current developments. The sentiment was right but the outcome was not what we thought it would.
10:21 AM on 03/08/2012
There is very little reason to Ever drop out of High School no matter what your home life is like. If you Want it you will Get it.
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Sherry Powell
You are never too old to learn something stupid
07:34 AM on 03/08/2012
We need to bring back vocational training in a big way... Public education is focused on College Prep... and we are loosing too many kids. I don't care what color you are... many kids are just not college material, but good hard working people if given a fair shake. Find out early on what they enjoy doing..give them opportunities to explore various types of employment. Expose them to something other than fast food jobs... We send so many jobs over seas ..Jobs that generally employed kids who were not college bound. Now they are left out in the cold.
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rich08533
I guess the word job sounds nasty to a lot of peop
01:45 PM on 03/11/2012
I find it hard to understand why people that speak poor engilsh, let their underwear show because their pants are below their butt, or wear their hat backwards wonder why they are having problems getting a job. oh yeah....tatoos on their neck. I would tell them......I will call you if we get an opening. Thanks
My 42 year old neighbor works at McDonalds and refuses to work over 32 hours a week. He said it should be against the law to work so many hours. I dont think he will ever get a McMansion.
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Sherry Powell
You are never too old to learn something stupid
03:16 PM on 03/11/2012
I agree to a point. YES..if you are born here to parents who were born here, you should know the Kings English... And dress according to the position. Very few job openings following Rappers around...so you best find a pair of pants that fit and ditch the hat. But my point was that without vocational training Micky D's might be your only choice that's legal... Years back we trained people to fill positions that didn't involve a drink machine. We prepared them for jobs that paid more than min. wage..and they would quickly learn they need to dress right to get the better job.
03:40 AM on 03/08/2012
Indeed, workers lacking high school diplomas saw their unemployment rate jump 6.6 percentage points in June vs. a 2.3 point increase for college grads who has their degree from one of the High Speed Universities
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thefredman63
11:34 PM on 03/07/2012
wow, did he really think of that all by himself?