How to Save the Life of a Black Entrepreneur

The African American population has endured 500 years of existence in America. We have contributed to absolutely every aspect of life which supports the United States’ economy. African Americans of the 18th century endured an abysmal and depressing existence. It was a community of slaves with no civil, human, or political rights. Many people of African descent fought against the abolishment of slavery, many fought to be recognized as intelligent human beings, others fought for equality, and yet others fought to live as creative souls. From Crispus Attucks to Booker T. Washington men and women imposed a will powered by faith, determination, and fearlessness to prove the people of African descent had the ability to participate in the nation building effort we call America.
Booker T. Washington demonstrated over a hundred years ago that training African American men and women to be skilled workers is an advantageous and ameliorative campaign that would provide encouragement and motivation for blacks to construct their future. Men and women built their own homes and other institutions. From Marcus Garvey to Robert L. Johnson, from Madame C.J. Walker to Oprah Winfrey, there have been men and women demonstrating the entrepreneurial potential of people of African descent. There are many businesses in existence today powered by the imagination, blood, sweat and tears of fearless warriors inspired by slaves from generations ago. But, during this current economic recession, African Americans are being hit worst with unemployment and the lack of economic opportunities.
Very frankly, African Americans are very disconnected from the institutions that control capital. Without the support of banks, government loan programs, and venture capitalist, the opportunity to grow a brighter future during these economic times are mitigated with near pandemic impact. While economist speculate about the affects of the 9% unemployment rate affecting the country in 2010, African Americans communities (often referred to as Black Mecca) are besieged with unemployment rates approaching 45% or more. Cities like Detroit have had major grocery chains closed within its borders. City revenue from taxpayers is idling (causing cities to face the plight of insolvency) and this is happening with the existence of the largest middle class population of African Americans in the history of the US.
African Americans exist in America. And somehow the African American community needs to be recognized in terms of its potential instead of any alleged liabilities. The echoes of slavocratic rule and Jim Crowe philosophy still run through the arteries of the political leadership in the US. The best way this potential can be measured is in terms of entrepreneurial enterprising. Plain and simple, African Americans must create businesses which make money, provide jobs, and provide financial support to the social institutions burdened with filling the gap of resources created by joblessness. Currently, according the SBA, an estimated 85% of African American and Latino business startups often close within their first thirteen months. Usually these businesses are funded by small loans between $3,000 and $20,000 provided by family and friends.
Family and friends are providing funds based on an emotional appeal and not business savvy. And when you consider that African Americans startup approximately 300,000 businesses each year, that amounts to millions of dollars placed in the hands of individuals who often have no official business plan, lack business management skills, and have not properly evaluated their product or service idea potential to make money in the marketplace. Investment dollars valued in the billions that could have supported viable franchises and enterprises have been wasted because family and friends did not have a tool to assist them in evaluating whether the proposal to loan or invest would provide an ROI. We as Americans are very charitable, but when it comes to business investments, we should not think with our hearts. For African Americans, I am naming this syndrome the “Raisin in the Sun Syndrome” titled after Lorraine Hansberry’s play. More than ever, people of all ages affected by the recession are going to attempt to start a business. And these same people are going to beg and plead their parents, siblings, other family and friends for money.
Anyone facing this syndrome can prepare themselves and their friend or family member by purchasing the entrepreneurship course titled Venture Basics 101: Opportunity Recognition. The lessons and templates will help any startup properly evaluate their product or service idea potential to make money in the marketplace. If after the various exercises are completed and reveal that the product or service idea is viable, then it is possible that lending money will be a prudent decision. Moreover, the loan recipient will have a plan to show how they will actually repay their loan.
African Americans like all other Americans must embrace developing systems of accountability. Currently banks and venture capitalist are very tight with their investment dollars. And the stringent credit requirements will be an enormous barrier for many African American startups. But these things won’t stop many from still attempting to actualize their entrepreneurial dreams. Let’s make sure that the more persistent start-ups are prepared for the adventure by making business development education as accessible as possible. The future of the Black Mecca is at stake. We can’t witness 500 years of progress perish for a lack of knowledge concerning business planning.

Venture Basics 101: Opportunity Recognition is available at Amazon.com