Challenges faced by Black business owners
(thestarpress.com) MUNCIE — There’s a long history of local businesses owned by African-Americans and other minorities. That history is marked by some black business success stories — and some business failures.
African-American business owners experience the same frustrations that any business owner feels, including lack of recognition and lack of support. With black-owned businesses, however, the reasons for failure can range from simply failing to connect with customers to never standing a chance of gaining the patronage of non-minority consumers.
“The things that would improve (minority) business in Muncie would improve business all over the country,” said Darryal Hawkins, owner of Muncie Precision Hard Chrome and Hawkins Industrial. “We suffer from the same problems: Lack of exposure, lack of capital, lack of commitment by folks to do what they say they will do.”
Black business owners say their frustrations can extend to the African-American community itself.
“They’ve not used their economic power in this community,” said Carl Kizer Jr., owner of Kizer’s Carpet Care, referring to local African-Americans. “They’ve not used it. That’s the problem. Even for some minority businesses, other minorities don’t rally and support them.
“My business is probably 95-percent white,” Kizer added. “There are a lot of blacks out there with carpet. Do they gear their dollars to minority businesses like mine, to help it grow and employ more minorities? No, they don’t.
“They would be an economic force if they all rallied together,” Kizer added. (source)
This is another issue that I have talked about at great length here on this website. On this particular article I am a little mixed. Here are two quick points:
1.) From what I have seen and personally experienced, many Black consumers tend to expect way too much (and not pay for it) when dealing with a Black business. Conversely, I have seen Black business owners charge way too much for their products/services–out pricing themselves out of the market.
2.) Don’t expect Black folks to come swarming for your services just because you are a Black business owner. If you have been offering substandard products/services, like any other consumer group, Black folks will go elsewhere. The only institutions where I have seen the Black dollar recirculating back in the community are beauty salons/barber shops, churches and other social groups, restaurants and entertainment. Beyond that, I have not seen the Black Dollar Days concept actually sticking for a long time.
Related link(s)
African-American Chamber Survey
Are they taking over or did we give them the keys?
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This has always been a pet peeve of mine too. I’m willing to pay a little more t a black owned business, but I expect to get what I pay for. Too many times the products or the service is just substandard.And most of these businesses are not open to any criticism that could help them be a better business.
An idea: Maybe what is needed is an index of Black businesses with QUALITY services and products. Not just a list of Black owned businesses, but those that know what customer service is all about.
Comment by BH | February 20, 2007
Mr. Hawkins accurately captured the primary challenge facing Af-Am businesses: access to capital and credit. It’s important to note, though, capital and credit are the main hurdles to most businesses.
While the challenges aren’t unique to Af-Am entrepreneurs, the solutions are in many cases. For example, a higher retail price can justified by a marketing strategy emphasizing exclusivity, lifestyle, convenience or some other aspect of branding. Part of effective customer service is learning the priorities of your customers.
Comment by MIB | February 23, 2007