Everyone is familiar with Wall Street in New York where stock trades are made, but are you familiar with Black Wall Street, an area in Tulsa, Oklahoma? It’s the place where African Americans built their own economy with grocery stores, schools, homes, churches, hospitals, hotels, and other businesses. By 1921, they owned 35 square blocks of property in this community where they flourished, until one day, there was the Tulsa race massacre where this entire community was burned to the ground.
Unfortunately, this community was never the same again and very few people were able to keep their family homes that were destroyed. In a time of segregation, this type of community was necessary to carry out the law, “separate by equal”. I can recall my grandmother, Jimmie Hooks, born in 1930, before her passing this year at age 93, stating that her grandfather had a business, but could not own a home. She would say, “Ain’t that crazy”. This is no longer the case today, every man is considered equal, or are they?
According to the 2022 Annual Business Survey, covering year 2021, conducted by the US Census Bureau, there are 5.9 million employer firms in total, 1.2 (21%) million are minority owned (any race and ethnicity combination other than non-Hispanic and White and nonminority firms classified as non-Hispanic and White) and 1.3 (22%) million were women owned. These numbers have increased slowly due to limited access to capital.
According to the U.S. Chamber of Commerce’s website, Nicole A. Elam, Esq., president and CEO of National Bankers Association, stated “When you think about the Small Business Administration program, for example, they only have about 3% of African-American borrowers who are participating in their flagship programs … because there are so many barriers to participation.” Institutions and venture capitalist need to be more equitable with capital to minority and women business owners. Businesses boost the economy as an employer. With employment, people have the money to put into the economy. They can feed their families, have healthy stable lives, and buy items in the marketplace. A strong economy helps to nurture a strong family.
One individual who understood this, was Maynard Jackson. Former Atlanta Mayor Maynard Jackson, 1972 – 1982 and 1990 – 1994, is known for his diversity in government contracts to minority business owners in building a terminal of the Hartsfield International Airport in Atlanta, Georgia. He believed that access for minority contractors who could do the work, was vitally critical for the development and growth of the city of Atlanta and its citizens. The city would not be thriving today if it had not been for Maynard’s stance on economic justice in government. Any search or article you pull on the web, will state Atlanta, Georgia as one of the top cities for entrepreneurship or business.
It is critical to build businesses in underrepresented communities. In 1993, the U.S. identified Empowerment Zones (EZ) in certain low-income communities for the purpose of reducing unemployment and stimulating the economy growth in those areas. The nonprofits and business owners receive grants and/or tax incentives as stated by GAO.gov if they setup in the zones. There are state and local grants that are being offered to those firms that are willing to develop in EZ. From coast to coast, Chicago has the Illinois Enterprise Zone Program, Texas has an
Opportunity Zone Program, Los Angeles has Opportunity Zone program and Philadelphia has the Philadelphia Empowerment zone. Philadelphia has four Neighborhood Funding Stream grants for non-profits and small businesses. A company that has done this successfully is the innovation and technology firm, mHUB, in December 2023. The company, moved its headquarters to the Near West Side of Chicago, an Opportunity Zone, and received $9.6 million in funding from the state of Illinois. Check out your state and local government website to find out more.
The United States may never experience another Black Wall Street, but it can experience a higher number of minority businesses than at its height during the Civil Rights movement. The US can have a stronger, richer economy and really become equal with easier access to capital for minority businesses with bank loans, grants, equitable government contracts and businesses building in opportunity zones.
Thank you Donley for your comments.
We can be supportive of minority businesses. Be intentional about purchasing from minority owned businesses, like business services, eating at a restaurant, every day products, household or business repairs, the list is enlist.
If you are getting excellent service, ask the minority entrepreneur how you can help promote them. Share their business with your family friends.
Thank you for uncovering this challenge that members of the minority community are facing.
What lead measures can we take to reverse this reality?
How can we identify the hurdles and equip businesses to leap over them?
In what ways can an average citizen like me, render aid?
Thank you for unraveling the facts and alerting us to this troubling dilemma. Please allow me to ask: What are the lead measure we should be activating as early as possible to engage more minority owned businesses in the process? How can we reduce the hurdles, or, equip the people to leap over them? What steps should an average citizen like me take to show support and render aid as needed?