Category: Business

Induced Fear And The Notion That White Is Better

In the 2014 State of Black America report, the essay, Facts vs. Fiction: Buying Black As An Economic Strategy, revealed that out of the trillions that African Americans spend annually on goods and services, only 3 percent of that amount is used to support Black-owned businesses and firms.

Wekesa Madzimoyo, the founder of The AYA Institute, discusses the history of African Americans as business owners. “I’m sad that we finance our own oppression and also understanding why we do it, how we got to be where we do it, and what’s needed for us to no longer do it,” said Madzimoyo.

In a previous article, Madzimoyo explained the tactics that were used in order to discourage African Americans from starting and supporting Black-owned establishments. Madzimoyo gives an example as to how and why this issue occurs within the African American community today.

Fade 2 Success School Supply Drive

The Fade-A-Way Cutz Barber Shop & Salon is spearheading the Fade2Success initiative in which they’re encouraging individuals in the community to donate school supplies for the upcoming 2014 – 2015 school year. The goal is to provide these materials to the children of the Boys and Girls Center of Hope at Thomasville. If you would like to support the Fade2Success initiative you may do so by sending or bringing supplies to two locations: Fade-A-Way Cutz Barber Shop and Salon, 1120 Ralph David Abernathy Blvd. #3, Atlanta, GA 30310 and The Good Hair Shop, 2001 Martin Luther King Jr. Dr. SW, Suite 100, Atlanta, GA 30310. Let’s support our communities children in going back to school!

Around The Way App Helps Blacks Buy Black

Around The Way

What if your smartphone could help you give back and buy Black? The Around The Way app is a free app designed to help you locate Black-owned businesses in your community. The idea for the app came from a young woman by the name of Janine Hausif. In an interview with BET, Hausif discussed her desire for African Americans to succeed by supporting Black communities and businesses.

The Around The Way app allows users to locate Black-owned businesses by using their smartphone’s GPS location. The app also allows users to set their cities location in the settings menu, and from there individuals are able to view a list of businesses in their area. The selection of businesses range from
Banks, ATMs, Restaurants, Beauty Salons, Barber Shops, and Health and Wellness just to name a few.

According to Nielsen
, consumers are spending more time using their smartphones, with an average monthly time of 34 hours and 21 minutes per user. Among those consumers, African Americans ages 18 to 34 spend the most time using their smartphones, with individuals from ages 25 to 34 leading with 53 percent.

While you are surfing the web on your smartphones, download the Around The Way app so you can help support and give back to the Black companies in your community.

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Consumers Feedback On Buying Black

According to the United States Census Bureau, there has been a significant increase in the number of Black-owned businesses at triple the national rate. These numbers were gathered from the, Survey of Business Owners, which is conducted every five years. Although Black-owned businesses have increased in the United States, the amount of receipts generated by these businesses has declined. In Jim Clingman’s article, The Mythical Black Economy, he found that the average gross receipts for Black-owned businesses decreased by 3 percent, from $74,000 per firm in 2002 to $72,000 per firm in 2007.

It is important to address the issue regarding the lack of support for Black businesses in the United States. In a recent survey, Supporting Black Owned Businesses, the results show that roughly 33 percent of the respondents are aware of the Black-owned businesses within their community. Results further show that, individuals seldom patronized at Black establishments. Also, when asked about their shopping experiences with Black businesses, most respondents chose that they occasionally receive superb customer service and feel as though the products or goods that are offered are rarely priced fairly. Outcomes from the survey also show that nearly all respondents do not feel obligated to support Black businesses if the customer service is substandard. However, 100 percent of the respondents reported that it is very important for African Americans to support Black-owned businesses.

Below, Representative Joyce Beatty discusses the importance of entrepreneurship within the Black community and the need of support for small businesses and minority-owned businesses.

Why Blacks Don’t Buy Black

According to Nielsen, statistics have shown that African Americans are the number one consumers in the United States, spending more than $1 trillion dollars a year on goods and services. A small amount of those funds are used to support Black-owned businesses. In the 2014 State of Black America Report, the article, Facts vs. Fiction: Buying Black As An Economic Strategy, revealed that the black dollar only last six hours in its community before going out into the world. In other communities, Asian, White, and Hispanic, their dollar lasts in their community 7 to 28 days before it goes out into the world. This means that African Americans spend their monies outside of their community with non Black-owned businesses, thus not supporting or empowering their community.

After conducting a questionnaire that concerned African Americans patronizing with black businesses, the results showed that the top three reasons many Blacks have issues with buying black are:

1) Customer Service: Many respondents feel that the owners and or employees are not welcoming or attentive to customers.

2) Availability of Products/Goods: Some respondents feel that the products and or goods that they are seeking are not always offered or available, causing them to shop with that business only once.

3) Prices/Over Charging: Respondents expressed that in some cases the products or goods were overpriced, forcing them to shop elsewhere where they felt the products were affordable.

In order to address these issues and concerns within the African American community, it is important to first confront the root of the problem. The survey below, Supporting Black-Owned Businesses, is designed to ask questions that may help Black business owners understand the consumer’s frustrations and hopefully find ways to fulfill their needs and desires.

An Entrepreneur Who Gives Back

Kathy Martin is an African American entrepreneur and real estate tycoon that has served the Atlanta community for the past 20 years, operating as an investor. Martin is CEO of Real Estate Solutions, LLC, and has multiple real estate companies that specialize in different aspects of the real estate industry. “I have several businesses…I have a property management company, I have a company that just buys the houses, and I have a company that rehabs the houses,” explains Martin. Currently, Martin’s workforce of employees is greater than 90% minority.

According to Timothy Bates’ article, The Urban Development Potential of Black-Owned Businesses, many African American-owned firms have difficulty gaining access to financial capital when trying to start or maintain their business. Bates list three reasons as to why Black-owned businesses have difficulty:

1) There is a greater chance that Black-owned businesses will have their bank loans denied, even if they’re equally qualified with White applicants.

2) If African American business owners are approved for a business loan, they usually receive a smaller amount of funds compared to non-minority business owners.

3) Black businesses tend to rely on credit cards in order to start and form their businesses.

Martin is the exception to these statistics. She is one of the few women in real estate that operates as an investor, using her own funds to lend, purchase and refurbish properties. “I noticed that there wasn’t really any African American women being real investors, where they actually had their own money to go into the community, rehabbing them and making a difference in African American lives,” says Martin. She explains how she witnessed individuals conduct biased real estate business in the Black communities, while taking advantage of African Americans and their communities, which led Martin to go into these Black communities to make a difference.

Martin discusses the importance of supporting African American communities and businesses. She explains that her number one consumer is the African American community and that she puts the money back into the community. She suggests three things that the Black community has to have in order to be successful: integrity, self-esteem, and customer service. “I think there are three issues, the first one is definitely integrity in our own community. The other one is self-esteem, we always want to fit-in, I don’t know why, we have so much going for us,” says Martin, “and we lost customer service. If you think about those three things, that’s the reason why you have picked someone over somebody else, to buy something or to do business with.”

Martin discusses her thoughts on African Americans as the number one consumers, spending a $1 trillion dollars a year on goods and services.

Atlanta’s Fade-A-Way Cutz Supporting And Mentoring Young Black Youth

Atlanta’s Fade Away Cutz Supporting & Mentoring Young Black Youth from C. Murray on Vimeo.

Dean Lewis, Gene Bottex, and No No Farrie are the owners of Fade Away Cutz barbershop located in Atlanta’s Historic West End neighborhood. These barbers have started an initiative called, Fade to Success, in which their focus is to reach and mentor young African American men in their community. Each Tuesday they travel between Adamsville Recreational Center and Thomasville Recreational Center to offer free haircuts to the young men in the neighborhood. While cutting hair they engage in discussion with the youth and talk about issues such as sex, drugs, crime, money and school.