Minority Business Development:
Why aren’t we getting better results?
by Melvin J. Gravely, Ph.D
The article and the points below are excerpts from a more indepth discussion of this question that is found in THE ENTREPRENEURIAL THINKER, a publication of The Institute for Entrepreneurial Thinking www.entrethinking.com (http://www.entrethinking.com) • March, 2005
In 2005 most people involved with funding, running, supporting or benefiting from minority business programs agree that we have not achieved nearly enough in the way of results. The question is why not? The answer is not as easy as “they are not really serious” or that “minorities aren’t ready.” The answers to why the results of minority business development are less than desired are multifaceted and complex. Our constraints to making more progress revolve around six primary issues.
1. A veiled social orientation. The methods by which we have wanted to develop minority businesses have stifled the desired outcomes. Too often our approach has been more about helping people feel better about their opportunities, than about the actual success of
minority businesses. . . .
2. Funding driven versus market driven. Our review of minority business initiatives nationally indicates that the genesis of many programs is more about the availability of funding than the market demand for the program. . . .
3. Surface solutions to a complex reality. Many people think they understand the problems and most have even determined the solutions. The outcomes of this “the answer is simple” thinking are surface solutions to complex situations. . . .
4. Replacing Entrepreneurial DNA. Entrepreneurs, no matter what their race, must be people who proactively seek opportunity. They must have perseverance and passion. Their businesses must create value to the market. This is the DNA of entrepreneurship. . . .
5. The need to please the loudest. I understand the political realities and polarities that surround race. Loud voices in most communities serve the critical role of raising awareness to important issues. But loud voices do not necessarily mean they are right. . . .
6. Tough, complex work. This is the bottom line. The crux of all of the reasons we have not gotten better results is the fact that minority business development is tough work. In our haste and excitement to create new opportunities we sometimes forget this sobering reality. . . .
Dr. Melvin Gravely is professionally dedicated to developing capacity and opportunity for minority entrepreneurs. He is the author of the popular book, When Black and White Make Green. Dr. Gravely is a sought after keynote speaker and respected advisor to major corporations, chambers of commerce executives, urban city leaders, and NMSDC affiliates.
Dr. Gravely is a frequent guest on radio stations from Los Angeles to New York and has been featured in many national publications including Black Enterprise Magazine, Ebony Magazine, Entrepreneur Magazine and American City Business Journals.
Read more about these issues, and the extensive work of Dr. Gravely. Sign up (http://www.entrethinking.com/enroll.asp) now for more research and information.
MadWiz
June 1st, 2005, 08:17 PM
The first thing Melvin J. Gravely needs to do is get specific! When you say "minority" in reference to businesses development and ownership, that implies Asians, Arabs, white women, gays, the socially and physically challenged, Latinos and others. When set asides are doled out, let's say 20% to "minority" contractors, Blacks get anywhere from 2.5-4% of that total.
Black business owners as in all other aspects and sectors of society are on the bottom! The statistics presented here on Izania.com is further proof of this.
In a February 27, 2002 front-page USA Today story--"Asian business owners gaining clout," it states how just some 20 years ago, we were the no.1 in business ownership among so-called "minorities."
"Not anymore. Now, Hispanics are first, Asians, second and blacks third, a USA TODAY computer analysis of new government data show."
Furthermore, "Asian businesses are bigger, with, on average, annual revenue of $336,200 vs $155,200 for Hispanic companies and $86,500 for black-owned companies. "That has helped make Asian households wealthier with an annual median income of $55,521."
Notice they didn't say it came from working a 9-to-5 in corporate America.
But more to the point, people like Dr. Gravely and other black entrepreneurial speakers, etc need to deal specifically with wealth creation, business development, etc for Black people in America more specifically rather than trying to speak to others' development.
Hispanic and Asian groups are gaining ground on white America in terms of small business ownership and it's small business that employs more people than the fortune 500 companies.
But again, people like Gravely would rather speak all around and deal with everything but Black business development; "minorities," "people of color" and all that other nonsense that ultimately stalls our collective progress!
Thuso
July 15th, 2005, 07:47 AM
My friend Madwiz,
I have been thinking about your response to this post for awhile now, and I was motivated not to be argumentive, but I must also come to the support on my frend, Mel Gravely. I have known Dr. Gravely for a long time, and he is truly a "thought leader" in advocating strategies and tactics that benefit Black entrepreneiurs. Your quote in the post below is totally misrepresentative of the work that Dr. Gravely is doing.
But again, people like Gravely would rather speak all around and deal with everything but Black business development; "minorities," "people of color" and all that other nonsense that ultimately stalls our collective progress!
Dr. Gravely is attacking the problem of achievement and inclusion of Black Business owners in the mainstream economy as a "Black Man with a Plan." While he is astute in the use of language and the "terminology of diversity" you will discover on close inspection that the root of his ideas, books, recommendations, and challenge to corporate America is a vanguard effort that represents the best that a Black Leader has to offer. He is first and foremost an advocate of programs that represent and will benefit the interests of Black entrepreneurs.
His recommendations -- in this article, and in the books he has written -- go to the root causes, and offer solutions to the problems and challeges of Black business owners. The arena he has chosen to participate in also creates a drag-along impact for other minorities. What a change in impact! We would do ourselves a great service if we take to heart his recommendations, and leap at the opportunities to participate in the opportunities that he is creating with his programs.
The question for Black business owners seeking to break into the corporate mainstream game is, "Are you up with Mel Gravely?" Not, "Is Mel Gravely down with you?"
Thuso
BeaLady
August 2nd, 2005, 08:42 PM
I also know Melvin Gravely and he truly does walk the talk. When he speaks of 'minority' he is speaking about African Americans. I know that he does stress excellence in business and it's not about black and white but about "green". One of my favorite books by him is the simple yet deep book, The Lost Art of Entrepreneurship.
In reference to the post I do agree. I am also involved in a Minority Business program in Ohio. I have noticed that there is a proliferation of Minority Business Programs across the country. It seems like Minority Business Programs have become the new business. It does appear that the major focus of these programs is to get more grants and funding.
These programs are admirable but I wonder if we could be more effective by consolidating these programs and our resources.
MadWiz
August 17th, 2005, 03:39 PM
Unfortunately you still don't understand my issue of contention with Mr. Gravely. The point here is why not simply say, "Black" or "African-American." Why continue to put such a broad and ambiguous label such as "minority" on us. Do you realize that "minority" means lesser than? If we're a majority, then someone else is a "majority" and therefore, superior. Furthermore, Asians, Arabs, white women, the handicapped, non-English speaking immigrants--regardless of race and Hispanics all qualify as "minorities." So again, if when Mr. Gravely said "minority" and meant Black, why not say so? We need to stop referrring to ourselves as "minorities" or "people of color!"
MadWiz
August 17th, 2005, 03:41 PM
Thuso: I believe I'm exactly correct in what I stated in response to Mr. Gravely, I don't know him like you, however, since you do, maybe you should inform him of why referring to Black people as "minorities" is self-defeating behavior!
MadWiz
August 17th, 2005, 03:46 PM
PowerNomics: Restore and Rebuild Detroit
Rally and Economic Summit
August 20, 2005
Entire Event Inside Cobo Hall
Assemble at 10:00 AM,
Program Begins Promptly at 11:00 AM; Concludes at 2:00 PM
Moderator - Bob Law, Entrepreneur and Radio Personality
Hosts: Councilwoman JoAnn Watson and Wayne County Commissioner, Kwame Kenyatta
Featured Speakers:
Dr. Claud Anderson
President City Council, Maryann Mahaffey
Councilwoman Joann Watson
Councilwoman Barbara-Rose Collins
Councilwoman Sharon McPhail
Kwame Kenyatta, Wayne County Commissioner
Alderman Dorothy Tillman, Chicago
Jim Clingman, Blackonomics
Dr. Rosie Milligan, Los Angeles Publisher
and many others.
Join the tribute to Detroit Progressive PowerNomics Leadership and to new leadership from across the nation as we come together to demonstrate:
\ That Black Detroiters and supporters across the nation are committed to Powernomics principles and building a Black Business District;
\\ That Blacks in Detroit are the majority population and expect to be treated like and will act like the majority in all matters going forward
\ Detroit is the PowerNomics beginning that will spread to all urban areas where Blacks are the majority-underserved population
\ Blacks will support only those who support them, regardless of race.
Program begins promptly at 11:00 AM and concludes at 2:00 PM
August 20, 2005
Suggested Hotels
Pontchatrain Hotel
2 Washington Blvd, Detroit, 48226 – 313-965-0200
Closest to Cobo Hall (across the street)
Rooms from $89. This price available if identify selves as part of PowerNomics group. Must make reservations by August 16 to get this rate.
Holiday Inn Express
1020 Washington Blvd., Detroit - 313-887-7000
Second Choice. Within walking distance of Cobo Hall, but farther away than the Pontchatrain.
Transportation
People Mover, overhead tram that circles downtown area has stops near Cobo Hall and several downtown hotels.
Contact Numbers s
For more information call 313-491-8315
Agenda
PowerNomics:
Restore and Rebuild Detroit March and Economic Summit
August 20, 2005
Purpose: To demonstrate wide support and commitment within the City and from Black dominated urban areas across the nation for the PowerNomics Plan for Detroit to
economically empower the city’s under-served majority population.
Goals: The goals of this summit of commitment are;
to give support to Black Detroiters who want to implement the PowerNomics plan to industrialize their community and build a model Black Business District based upon the City’s competitive racial and cultural advantages;
to motivate summit participants to return to their respective Black cities and begin building industries and a Black Business District;
to publicly demonstrate that Black Americans are committed to PowerNomics principles and when they are they majority population, they expect to act like the majority and win; and
to present elements of the PowerNomics Plan along with success models in economics, education, politics, and community building.
Anticipated Outcomes: Participants will return to their respective communities and;
1. promote the PowerNomics Plan;
2. convince Blacks to act like a majority population whenever they are in fact the majority population;
3. persuade their city council to enact a resolution indicating Blacks are the majority population;
4. identify and secure an area suitable for redevelopment into a Black Business District;
5. support only individuals, institutions, or political parties that support Black America economically;
6. withhold support from individuals, institutions, or political parties who do not support Black America or do harm to it.
PROGRAM AGENDA
10 Min. Mr. Bob Law, Master of Ceremony, Businessman, radio talk show hosts, and seasoned activists from New York.
Topic: Purpose and goals of the Summit.
Part I:
Presenters Address Key Elements of Detroit’s PowerNomics Plan
20 Min. Dr. Claud Anderson: PowerNomics Corporation (Bethesda, MD)
Topic: Profiles and analysis of structural racial inequalities in Detroit and America which render Black people null and void;
Summary of PowerNomics Plan for Detroit.
10 Min. Dr. Rosie Milligan: (Businesswoman, publisher, and activists from Los Angeles)
Topic: Build functional physical communities & a sense of community.
10 Min. Mr. Jim Clingman (Author, syndicated columnist, college professor and activist from Cincinnati, Ohio)
Topic: Practicing Group Economics with appropriate behavior.
10 Min. Mr. Amefica Guyuka (Member of the National Association of Owner and principal of an African American chartered school in West Palm Beach, Florida.)
Topic: How the PowerNomics Plan can aid Blacks to control their schools, offer relevant programs that equip Black children to economically and politically compete in marketplaces and political areas in Detroit and across the nation.
10 Min. Dr. Earl Trent (Pastor, Florida Avenue Baptist Church, Washington, DC Topic: Re-capturing the traditional role of the Black church and redirecting its spiritual and economic resources into the economic Empowering of Black people and their communities.
Part II:
Presentation of PowerNomics Models
10 Min. Alderman Dorothy Tillman, City Alderman, Chicago, IL.
Topic: A Model use of Public Office to Build a Black Business District.
10 Min. Pastor Kenneth Whalum, Memphis, TN.
Topic: BAMM: A Model PowerNomics Project for supporting Black Businesses in Memphis, TN.
10 Min. Fred Caldwell Pastor, Greenwood Acres Full Gospel Baptist Church, Shreveport, LA.
Part III:
Call’Em Up (Appropriate Behavior)
This section of the program is to recognize local elected officials who have demonstrated appropriate behavior in politics and government in the past. Bob Law, the M.C., will call these individuals to the stage and recognize them with an “Appropriate Behavior Award.” Bob Law will indicate their current status as candidates for certain public offices as indicated below;
Detroit City Council Candidates: JoAnn Watson, Kwame Kenyatta, Maryann Mahaffey, Barbara-Rose Collins, Maureen Taylor, and others.
City Council Member and former Mayoral Candidate: Sharon McPhail
Detroit School Board Candidates: Theo Broughton, Marie Thornton, and Rev. David Murray.
Call Up and Acknowledge State Delegations from Across Country
Call ‘Em Out (Inappropriate Behavior)
Agnes Hitchcock announces the Sambo Awards Ceremony. She also discusses the group’s accountability purposes and the kinds of Sambo dis-honors and activities associated with the ceremony.
Part IV:
Conclusion
I. Bob Law summarizes Action Steps representatives should take when they return home; distribute handouts;
Announce press conference and organizational meeting for new Black leadership that will follow dismissal.
Recognize and thank organizers
Dismiss group.
II. To Do List When Return Home
(A refined list will be distributed to all. No more than one page.)
1. Change your language. Use these terms and insist that everyone else, black, white
or any other ethnic group use these same terms;
Blacks are the majority population where data confirms;
Blacks are not minorities;
Black Business District not African Town;
2. Get resolutions passed where Blacks are the majority population;
3. Demand that Blacks be treated like the majority and the majority of contracts be
awarded to them;
4. Get cities to pass residency laws for city jobs;
5. Identify and begin to secure 40 acres sites in cities to build a Black Business
District;
6. Demand that school curriculums incorporate PowerNomics principles; preparing
students for ownership and employment specific to industries that will be the anchor
for Black Business Districts;
7. Apply PowerNomics principles to politics;
8. Do not support any individual, corporation or group that does not support or harms Blacks;
9. Withhold support from individuals, corporations and groups that harm Blacks;
10. When Blacks are the majority they should be treated like the majority and they should win.
New Black Group Leaders from Out-of-State
Dr. Rosie Milligan West Coast Support Group for the Harvest Institute
(Los Angeles, CA)
Tom Pope Talk show host, PowerNomics Radio Network, Washington, DC
Carmen Crockett President, PowerNomics Group, Springfield, IL
Greg Edwards Director, Akron, OH Black Chamber of Commerce
Jim Clingman Author and columnist, Cincinnati, OH
Black Farmers of America, Memphis, TN
Bobby Casten President, PowerNomics Group, Greenville, SC
Carlos Lester Omni Tech School, Atlanta, GA
Alvis Akins City Council Member, Durham, NC
Dorothy Tillman City Council Alderman, and President of the National Reparation Convention, Chicago, IL
Amefica Guyuka Administrator, Member, Africa-American Charter Schools Association
West Palm Beach, FL
Fred Caldwell Pastor, Greenwood Acres C, Shreveport, LA
Kenneth Whalum Organizer, the BAMM Project, Memphis, TN
Dr. Earl Trent Pastor, Florida Ave. Baptist Church, Washington. D.C.
Samuel Radford Regional Director, Citizen Action of New York, Buffalo, NY
Other Possible Out of State Attendees Too Numerous To List
INFORMATION SHEET
Suggested Hotels
Pontchatrain Hotel - Closest to Cobo Hall (across the street) and in walking distance of Campus Marcius Park
2 Washington Blvd, Detroit, 48226 – (313) 965-0200
Rooms from $89. This price available if you identify yourself as part of the PowerNomics group. Must make reservations by August 16 to get this rate.
Holiday Inn Express – Second Choice. Within walking distance of both Campus Marcius Park and Cobo Hall.
1020 Washington Blvd., (313) 887-7000
Transportation
People Mover, overhead tram that circles downtown area and has stops near Campus Marcius Park and Cobo Hall
Contact Numbers
For more information call 313-491-8315
Thuso
August 17th, 2005, 08:07 PM
Madwiz,
I understand your issue of contention. The problem lies within two larger realities. The first is that WE ARE MINORITIES in the USA. I lived in South Africa for three years, and there is a very different meaning to "Black Empowerment" in that context. Blacks have the power of numbers (majority population), political leadership (the ANC is firmly in control), and both the will and means to transfer wealth from those who stole it. The process may not be fast enough for some, but Black Power is a reality there, and Black Wealth is being reclaimed there.
The second reality is well articulated by Dr. Claud Anderson (I have read his books and recommend that you read Dr. Mel Gravely's books). Dr. Anderson points to the root of the problem in the negotiations leading up to the first Civil Rights legislation. The movement was about Black rights, but the leaders negotiated those rights away into "MINORITY RIGHTS" that include ethnic and social minorities (including white males over 45). This is then the arena that Dr. Mel Gravely inherited, and Dr. Claud Anderson labors in today.
So, it becomes a matter of tactics. One can attempt to be exclusionary and talk about programs for Blacks only, or be an advocate for Blacks in the arena where the battle is being fought. As MINORITIES (and now, not even the largest minority population), we have to be advocates for our interests, first among ourselves, then in the mainstream arena. Unfortunately, negotiations don't always result in getting everything we want.
As a final point, I recall a bit of advice from one of my mentors when I was a corporate executive. He said to me, "You can be an advocate for all that is Black and beautiful, but you aren't getting paid to be a civil rights leader within this company. You must deliver business results first and foremost. That is how you will be evaluated; that is the measure of success."
What Mel Gravely embraces in his book, When Black and White Make Green, is a roadmap that Black Entrepreneurs can follow in "delivering business results" with mainstream corporations. Within what the corporations call "minority diversity programs" he is a staunch advocate for Black participation, Black advantage, and Black leadership. It would help if more Black entrepreneurs could step up to the plate when he goes to battle for them. You should visit The Institute for Entrepreneurial Thinking (http://www.entrethinking.com/) and check out what he is doing.
Unfortunately you still don't understand my issue of contention with Mr. Gravely. The point here is why not simply say, "Black" or "African-American." Why continue to put such a broad and ambiguous label such as "minority" on us. Do you realize that "minority" means lesser than? If we're a majority, then someone else is a "majority" and therefore, superior. Furthermore, Asians, Arabs, white women, the handicapped, non-English speaking immigrants--regardless of race and Hispanics all qualify as "minorities." So again, if when Mr. Gravely said "minority" and meant Black, why not say so? We need to stop referrring to ourselves as "minorities" or "people of color!"
Don't get trapped in your own thinking, and therefore paralyzed in to inaction. Results, not labels, is what counts at the end of the day.
Amandla!
MadWiz
August 18th, 2005, 01:35 PM
When I get a chance, whenever that may be, I'll peruse Melvin Gravely's book, however, I pretty much am sure based on your description where he's coming from. Entrepreneurship is fine and more Blacks should aspire toward it rather than seeking to climb the ladder of corporate America (see USA Today 8/ 17 or18/05 issue--Business section about growing Black Mom and Pop businesses).
But I'll keep this pretty simple and if Gravely addresses this in his text, then he's on point and it's this: How does the Black entrepreneur seek to empower the Group? That's what's key --not how he benefits himself and a few--but the Group. This is what PowerNomics is all about and why I subscribe wholly to it and not too many other programs out here.l I'm not one who simply labels without having good insight into.
So, I don't "get trapped into my own thinking, and therefore paralyzed in to inaction. Results, not labels, is what counts at the end of the day." If this is to imply some closemindedness on my part because I took issue with Gravely, then you're surely wrong on that. I'm active and encourage others to do likewise so if Gravely has something that I believe is worthwhile and workable, then I can and will accept it and encourage others. Simple as that!
kimsuccess
August 19th, 2005, 08:04 PM
Madwiz,
Please keep us informed on how the session goes on August 20th.
Thanks
Kimsuccess
kimsuccess
August 19th, 2005, 08:08 PM
Thuso,
Thanks for posting the information about the Institute for Entrepreneurial Thinking. It is alot to read so it may take me a few to repond.
Happy reading and learning!
Kimsuccess:D
Thuso
August 19th, 2005, 10:38 PM
MadWiz,
Let me pause to say, I admire your focus and commitment -- especially to the concept of Powernomics. I am unable to attend the rally, but I hope that the logjam created by the issues with City Council can be resolved through "community action." I will continue to watch this closely. The outcome can become a beacon for others to follow.
While our dialog has slipped into the merits of Dr. Gravely (I'm sure he doesn't mind the attention), one of the things that i noticed from your last post is something I would like to comment on.
How does the Black entrepreneur seek to empower the Group? That's what's key --not how he benefits himself and a few--but the Group. This is what PowerNomics is all about and why I subscribe wholly to it and not too many other programs out here. I'm not one who simply labels without having good insight into.
So, I don't "get trapped into my own thinking, and therefore paralyzed in to inaction. Results, not labels, is what counts at the end of the day." If this is to imply some closemindedness on my part because I took issue with Gravely, then you're surely wrong on that. I'm active and encourage others to do likewise so if Gravely has something that I believe is worthwhile and workable, then I can and will accept it and encourage others. Simple as that!
Two things: One, I don't think you are close-minded or a victim of inaction. I am encouraged by your your enthusiasm for your positions.
Secondly, I have found that entrepreneurs are more successful when they focus on the success of their enterprise. We need to make good business decisions because they are good business decisions for our companies, our customers, our investors and our employees -- the stakeholders in our success. We cannot allow a "social agenda" to dilute our focus on the success of our enterprise. We cannot benefit "the group" until we are able to sustain ourselves. The best contribution we can make to the group is our own success. This creates jobs and strengthens the community. That is one of the points Mel Gravely makes. He has built a system, a process, a methodology -- that delivers positive business results. If only a few in the group are prepared to embrace and reap the benefits of his method, then he is not at fault. He has created something that many can benefit from, but only a few may choose to do so.
We entrepreneurs cannot be the rising tide that lifts all ships. Most of the time we are small vessels in turbulent waters, and most of our focus is on bailing the water that could sink our boats. We need the Claud Anderson's to lead the marches and focus on group strategies. That is not something that all of us can do, or should be doing. We all have our place and our roles in the collaborative effort to strengthen the group.
Amandla!
kimsuccess
August 20th, 2005, 11:48 AM
Thanks for that last explanation. Yes, a business is helpful to the community, but it cannot be the end all.
After or during the creation of businesses, there needs to be a component of activism that another group can focus on because a business owner has to run the business. Business policies, group advertising, group human resource services, community involvement, the list is endless. These groups can help to supplement what we are looking for a black business to do.
For instance, setting up an "employment agency/temporary service" in the community or that focuses on our community. This business or group would work with businesses to identify their needs and then work with the community to take general applications, screen to determine skills, even help with training and then offer these candidates to the businesses. It is alot to ask a business to take applications/screen/train and employ. I have worked for small businesses and this is the effort they use to hire employees. Maybe these needs to be a focus in our community. Our businesses and our work force have different needs that may not be addressed in the general population. If an african american has a "general" employment agency, maybe they could expand to have a department that deals with community businesses. It does not have to be exclusive but is should be inclusive of our businesses.
These are my thoughts!
Still reading and learning!
Kimsuccess:D
Everythingafrican_com
March 14th, 2006, 07:58 PM
I can only make guesses as to why we aren't getting as far as others. It could be that we aren't as supportive. In Asian communities they tend to be in tight circles. Most people in the same city know each other so naturally they buy from each other and learn from each other. I'm not sure we have that kind of connection with each other.
Thuso
March 15th, 2006, 06:23 AM
Everythingafrican_com,
Many of us wonder why Black Business development isn't making more progress.
I can only make guesses as to why we aren't getting as far as others. It could be that we aren't as supportive. In Asian communities they tend to be in tight circles. Most people in the same city know each other so naturally they buy from each other and learn from each other. I'm not sure we have that kind of connection with each other. However, I am starting to see that efforts like this forum and others are starting to bring those who can help one another together in a Virtual Black Community. We need to keep the embers burning rather than wait for The State of the Black Union once a year to listen to others tell us what they think is going on.
We need to use the ideas and tools shared in these dialogs to strengthen our buiness strategies, identify business partners and mentors, and collaborate in our economic self-interests. Rather than curse the darkness, we all need to light candles. Soon, the pathway of success will be lighted by our candles.
Keep the faith, and support Black entrepreneurs whenever you can.