Black-owned businesses
By HOWARD HILL Monday, August 04, 2008Black-owned businesses have experienced ups and downs over the years.
Shortly after official slavery ended in 1865, blacks realized the need for individual and group economic advancement. By the first quarter of the 20th century, black-owned businesses opened in retail and special outlets devoted to their needs. But with the advent of integration in the 1960s, many black-owned businesses began to fail.
For almost 100 years, blacks have exerted their energy toward economic, civil and voting rights, sometimes using the courts to advance these issues. However, with regard to a strong and viable black business presence in the Orangeburg community, there are voids. In reviewing the Orangeburg Chamber of Commerce membership roster, few black-owned businesses exist in a community with a large black population.
There are reasons for the scarcity of black-owned businesses. First, some blacks are reluctant to purchase goods or services from black-owned vendors because of the perception of inferiority: ice is colder or gas runs better if purchased from non-black vendors. Second, black-owned businesses may exist in locations where crossover traffic is limited or non-existent. Third, there are the issues of limited resources or unfamiliarity with substantial business practices that result in profitability. While not all businesses succeed, the failure rate among black businesses is high.
Even with franchise support, obstacles in business have to be overcome, the least of which are competitors and a fickle market base. Now is the time for leadership provided by Claflin University and its MBA program and Center for Entrepreneurial Studies to champion black-owned businesses. South Carolina State University's master's program in agribusiness, along with the Greater Orangeburg County Chamber of Commerce and the Orangeburg County Economic Development Commission, must promote partnerships toward this end.
Here are suggestions that might initiate vibrant thinking on the topic:
1. Community revitalization. A strong economic community is indicative of a progressive community.
2. Community needs. Businesses that focus on community needs are assets. Why must locals have to travel to Charlotte, N.C., Charleston, S.C., Savannah, Ga., Greenville or Columbia for goods and services that should be in the Orangeburg community?
3. Employment opportunities. Unemployment and underemployment rates in Orangeburg are too high, way too high. An abundance of jobs are needed in the community.
4. Taxes. Tax policies favor business ownership, while they punish wage-earners. Through depreciation, credits and tax incentives, businesses can legally manage their tax liability.
5. Job security. Owning a business is a long-term commitment. However, success in business depends on entrepreneurial capabilities.
6. Wealth creation. One may have income but be void of wealth. Financially successful business people leverage resources while passing them to their heirs.
7. Dream fulfillment. Bill Gates (Microsoft); John Johnson (Ebony Magazine); Warren Buffett (financier); Oprah Winfrey (television personality); Robert Johnson (Charlotte Bobcats basketball team owner); Martha Stewart (business) captured their dreams.
Business ownership is not for everyone, but more black-owned businesses in Orangeburg will enhance community viability, and the contributions of blacks will be recognized and valued.
* This column was originally printed in The Times and Democrat on November 9, 2003.
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