Eliminating Excuses!... Why African Americans Don't Own Businesses
Written by Crystal Washington, BME CEO



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:

  1. I don't have enough money.
  2. I don't know what I want to do.
  3. I am not knowledgeable enough about the business itself.
  4. I don't know where to start.
  5. 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 here .  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; inquire about pricing here.  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.