5 Reasons why we need Black Businesses
by Charmaine Simpson
According to George Subira in his book ‘Black Folks Guide to Business Success’, a Black Business is a business doing legal and profitable transactions and is owned by a person who is Black. So why do we need Black Businesses?
Reason #1: Job Development
Black economic freedom can’t be obtained by simply working for other people in a job (just over broke), assuming that others will create jobs for us to fill. Some of the brightest and talented people could be running their own business instead of working for someone else.
The Black community has a large supply of people who need and want a job. The Department for Work and Pensions found the unemployment rate for young Black people aged 16-24 was 45% in September 2013. In the 12 months to September 2013, the average unemployment rate for young people in all minority ethnic groups jumped from 33% to 37%.
Would this group not benefit from an increase in the number of Black businesses that would be able to offer them jobs or work experience? Could Black businesses benefit from and utilize the Black labour pool from this group?
Reason #2: Personal Development
Most of us are in a job where we feel stagnated and life has become routine and dull. If you feel this way, why not start a business. If you have ideas, ambition, goals and determination, a JOB is not the place where they can get the opportunity to explore what they have to offer the world. Businesses are a great way to develop yourself in the area of communication, marketing, finance and idea implementation.
Reason #3: Circulation of the Pound
According to the Institute of Practitioners in Advertising (IPA), Black populations in Britain have a spending power worth an estimated £300 billion. Who do we spend our money with? How many times does the pound circulate within the community before it leaves? If there is to be economic development, then Black people must hold onto the pound so that it is used two, three or more times in the spending and income cycles of the community.
However, we should move away from how much spending power we have and move to the supply side of the economic equation by supporting and growing our own businesses and pool together our economic resources. By supporting Black-owned businesses and connecting them with a customer base who wants to support them, we can ensure we become economically self -reliant.
Reason #4: Stop the Black Brain Drain
The Black Brain Drain is a situation in the Black community where the best trained, most disciplined, most ambitious and achievement-orientated individuals are using their time, training and energy to help the major European corporations to make money. We need our best trained people to assign themselves the duty of developing Black businesses.
Reason #5: Leave a Legacy for our children
By running a business, we can accumulate assets that we can pass to the next generation to work with. If you are working a 9 – 5 job, your income would stop as soon as you die. If you were to die next year, what would you leave your children that they can use to build a better life for themselves and your grandchildren. Do we have assets such as buildings, land, copyrights and trademarks, patents, artwork and financial assets they can use? Black people must develop businesses and support existing businesses for future generations.