Earlier in the series it was stated that black businesses have grown and appear to be holding steady. Especially businesses started by black women. Yet as a whole black businesses, employment, black economies aren’t doing well. Why?
The reasons why are
1. Government policies : Under the Obama administration many new policies have been put in place that severely slow down or halt the growth of a small business. The ARRA(American Recovery and Reinvestment Act) is an example of most funds going to big corporations and small businesses getting scraps. Also unfairly high taxes have been placed on small business owners. Then there are the regulations that dispropotionately cost small businesses more money than big corporations to follow.
2. Unable to employ more workers : Because of the heavy burden of regulations, increased taxes and and relative little funding. Small black owned businesses are less likely to hire more employees. They become more likely to stick with the employees they already have.
3. The lack of employment means : That the black people who would like to support black owned businesses are not able to since a growing number of us don’t have a steady income stream.
4. To niche or not to niche : Because many of us are black owned and depending on what service or product were providing. We’re forced to either depend on each other as customers/patrons and limit our pool of customers or we branch out and try to get people from all walks of life to patronize our services/goods. Problem with that is if we cast our net wide we don’t really have an incentive to pool and center our money. If we to focus on each other we risk lower profit margins and trying to squeeze the little bit of money we do have out of each other when many of us are still trying to stay a float ourselves.
5. The welfare state(which is affecting all people) : Is especially crippling. It essentially locks people out of participating in real small scale commerce. Which is essential to developing and maintaining a local economies.
6. Been there done that : So many niches, ideas have been done and are still being utilized to this day. Making certain markets hyper competitive and effectively pushing people out of the game.
7. Location : Unfortunately many black people in Chicago and throughout the United States live in areas of high corruption, high taxes, government regulation and a population that is increasingly on the government dole. So it’s that much more of a struggle for us if we happen to live in those same areas.
But is there a way for the black population to counter this?
Yes! But how?