Capitalism and commerce made America the world’s wealthiest country. For its entire economy history Black Americans’ roles have always been that of laborers—slave, salaried and union. In the present, as in the past, Blacks’ sole role in mainstream enterprise is as employees.
Black Americans’ most successful period in business occurred during Reconstruction and the Jim Crow era when segregation provided a market for transportation, goods via retail outlets and professional services for celebrations, construction, financial services, funerals and media to promote them all.
To help defuse racial enmity, in 1972 President Richard Nixon called for a mixture of government loans, tax incentives, private business aid and self-help to bring more Blacks into classic American capitalism: ownership of businesses. Under the conviction that broad-based ownership of businesses by Blacks was essential to national progress, Nixon declared that Blacks had “a basic right to be an employer as well as an employee” and formed the Office of Minority Business Development.
The Nixon era is a symbol of success for Black business development. It created a demonstrable movement that allied Black and White businesspeople, bankers and bureaucrats to equip aspiring Black entrepreneurs with capital, business training and markets. Nixon put in place significant initiatives toward Black business development. During and after the Nixon administration Blacks were first among “minorities” in business ownership. Thirty years later, Black business owners are back on the bottom. Now, Hispanics are first, Asians second and Blacks third. Actually Asians are the leaders of the pack. Their businesses are bigger, with an average, annual revenue of $336,200 versus $155,200 for Hispanic companies and $86,500 for Black-owned companies. Concentration on business pursuits made Asians America’s wealthiest minority group.
In declaring Aug. 31 through Sept. 6 as Minority Enterprise Development Week, President George W. Bush wants the nation to “recognize minority entrepreneurs and recommit ourselves to fostering an environment where everyone can attain the American dream.” Black American would do well to rethink their role in the nation’s economy. Less than 10 of every 1,000 Blacks are in business pursuits compared to 70 of every 1,000 Whites.
Black Americans should be more attuned to how effective use of public policy breaks down barriers of racism and economic injustice. Richard Nixon’s executive order was key to thousands of Black-owned businesses’ growth in America. Today, three decades after Nixon signed the order, the incidence of economic empowerment of African-Americans can be measured in direct proportion to the degree that Black capitalism is expressed through initiative, and not rhetoric.
Such an initiative is National Minority Enterprise Development Week occurring in Washington, D.C., Sept. 3-5. MED Week is the largest federally sponsored conference on behalf of minority entrepreneurs and business enterprises. The Minority Business Development Agency is the only federal agency created specifically to foster the establishment and growth of minority owned businesses. Ron Langston is President Bush’s appointee to head the MBDA. The agency’s mission is “to actively promote the growth and competitiveness of minority-owned businesses by providing access to public/private debt and equity financing, market opportunities, and management and business information; coordinating and leveraging public and private resources; and, facilitating strategic alliances.”
While Mr. Langston is an African-American, statistics show little leverage being given Black-oriented programs and projects at MBDA. In 2008 Hispanic initiatives were those most prevalent in the MBDA. People funding, running, supporting or benefiting from minority business programs agree not enough has being achieved for Black businesses in recent years. Blacks need to focus more on the role of commerce in America and engage political processes to have federal programs, such as the MBDA, return to initiatives that support and empower Black businesses.
Blacks have to become more enterprise- than employment-oriented. To become more mainstream in economics Black individuals, families, churches, community groups and our media have to use and reinforce business ownership and entrepreneurship toward an increase in the number of men and women who will consider entrepreneurship as much of a viable financial option as working for corporate America. MBDA programs/projects are located at www.mbda.gov.
(William Reed is president and CEO of Black Press International. He can be reached at wreed@blackpressinternational.com.)
