Indianapolis Recorder, Indianapolis, Marion County, 2 July 1994 — Page 3

SATURDAY f JULY 2,1994

THE INDIANAPOLIS RECORDER

PAGE A3

Opinions

Black firms '93 earnings mask an ugly reality when tossed around ' By EARL OFARI HUTCHINSON Black Enterprise Magazine released its annual report of the top 100 Black businesses in June 1990, publisher Earl Graves was worried. Many of the firms were backpedaling fast on the no-growth track. Graves blamed a moribund economy, attacks on affirmative action and massive cuts by the Reagan administration in-minority business programs and funds. That was then. When Black Enterprise released its 1994 survey on the top 100 this June, Graves was cheered. Sales for the top firms had climbed eight percent over 1992 and employment increased by 22 percent. He believed the future could be even brighter. He banked on a rebounding economy, a new Democratic administration more attuned to Black needs, and growing Black political clout. Graves was also chee red by t he new econom ic de mograph ics. There are 14 million Blacks in the labor force, two million Black col lege graduates, one and one-halfmillion Black families with incomes more than $50,000; two million Blacks in managerial and professional positions, and a Black consumer spending income of $300 billion. But the numbers tossed around by the report mask an ugly reality. The $6.2 billion in total sales for the top 100 Black firms in 1993 pales in comparison to the sales of major corporations. Overall, the sales of the leading Black firms equal less than the sales of Kelloggs, ranked 86th on the 1993 Fortune 500 list. The total sales of Black businesses were a microscopic three percent of the $2.3 trillion in salesof the Fortune 500companies sales in 1993. Despite the impressive rise in Black income, the gap between Black and white wealth is still gaping. The average net worth of Black households is less than 10 percent of white households. Barely 13 percent of Blacks have assets of $50,000 or more compared to 44 percent of whites. During the 1980s, Black leaders denounced the Reagan and Bush administration for cutting SBA minority business programs. They pointed to adverse Supreme Court rulings curtailing government “set aside” programs for minority contractors. They accused the banksof failing to increase credit and capital to minority firms. But the hard reality is that no matter how generous the support minority firms receive from government agencies, to grow they still must compete in the general marketplace to maintain profits and growth. Like other businesses, its fortunes rise and fall on the strength of the economy. If inflation-conscious consumers purchase fewer cars, appliances and new clothes; auto dealers, retail stores and clothing manufacturers are hurt no matter what color the-owners are. Some Black leaders and entrepreneurs see Clinton’s $3.8 billion plan for six urban and three rural Empowerment Zones as a salve. It’s designed to bolster minority business and induce mid-size manufacturing companies to relocate to the inner city through tax incentives and write-offs for skills and job training. Clinton’s plan is badly flawed. There is too little money, no firm commitment from banks to lend to minority firms, almost no fund allocation to educate and train the hard-core, unemployed and no requirement that the businesses to train and hire innercity residents. But it’s not a doomsday scenario. Black businesses can survive and be competitive if they adopt these strategies. —More self-help programs. Minority firms with the resources could pool money into a development fund to provide loans, credit, resources, training and a contact network for new businesses. — Become more efficient and continue to diversify. Black firms must concentrate more capital in research and development to upgrade products and services. Mergers, joint ventures, stock trading, and expansion into international markets have become essential tools for growth. — Mount campaigns to educate black consumers of the importance of patronizing Black businesses. Black Enterprise reports that Blacks spend an estimated $30 billion annually on goods and services. They will automatically spend those dollars with Black firms simply because they ’re Black. Black businesses must provide efficient service, and sell quality merchandise at competitive prices. They can boost their cause by contributing to scholarship funds, and promoting job and skills training programs aimed at the Black poor. Self-help, however, is not enough. Black trade associations and business groups should continue to lobby Congress, the Clinton administration and major corporations to provide more direct assistance to minority business. This is not charity. Black consumers and businesses pay taxes. They are entitled to demand that government invest a larger portion of tax revenue in urban growth programs. Those Black firms that adapt to meet the hard political and marketplace challenges will succeed. Those that don’t will fail. It’s called capitalism.

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LETTERS TO THE EDITOR

Flanner House: 'we challenge Blacks to support us'

These days more and more people know the African proverb which says,”it takes the whole village to raise a child.” However, there are a few in the village who are oblivious to this reality. Some still hold on to what 1 term “stale thinking” that someone else must do for us. On the other hand, I believe no one should do for us, we must do ourselves. Consequently, I feel the need to challenge the community, particularly African-Americans to invest in the future of Flanner House. The institution is at the crossroads of its almost 100 years of existence and dedicated services to the city of Indianapolis. I am appealing to the African-American community to make acommitment to ensure the survivability of the agency for another 100 years. We all agree the magic and excitement of Flanner House isback. However, the excitement and magic alone will not keep the doors open. That’s why I feel the need to continue to call on our community for support of this great institution. Flanner House has and continues to make a difference in the lives of people in ourcity. Itishoweverdisheartening that those who have gained the most from this agency, drive by the facility today in total oblivion. I must continue to challenge the African-American community to get out of the doldrums of apathy and support Flanner House. The indifference on the part of our people must stop. Support is necessary because poor people need it. The empowerment of the working poor requires your support and our collective experiences and history demands it. Noone is asking

you to come back, all I insist on is you give back. We must validate Frank Planner’s dream, a mortician whose business was dealing with the dead and the dying, yet, he found time to give life to others through the gift of Flanner House. Compliments abound for the work Flanner House continues to do, and are indeed appreciated. Compliments without support just does not cut it anymore. There are folks in this city who throw a nostalgic party every time they hear the name Flanner House. To these people I say, reminiscing about the good old days has not added a classroom to the Child Development Center or added staff to the youth program. Due to new. and expanded programs, we are literally sitting on top of each other because of lack of space. Even the boardroom has been given up for new programming. Thanks to board members for understanding and willingness on the part of some the^ them, to host board meeting at their places of business. I have a staff that is dedicated, hard working and on the job everyday, yet qualify for the same programs they are charged to dispense. They are the “Gentile poor” and for the most part see their work as a mission and not just a job. I need the support because there is still much to be done. The lack of support will eventually lead to the demise of this institution. Am I disappointed? You bet I am, because it has not yet gotten through our heads that a people who do not build and maintain viable institutions are bound to become non-entities in the long run. Now that I have enumerate a

few of the problems, I have solutions to present. It has been estimated that there are about 61,000 African-American households in Marion County. If every African-American home, regardless of the number of people will contribute 50 cents, $5 or $ 10, it will net Flanner House more than $30,000, $305,000 or $610,000 respectively. In four short years, Flanner House will be lOOyearsold. In this era of disposable everything, it is not everyday an institution becomes a century old. What is utterly fascinating to me is that I

am not sure the community-at-large really appreciates this milestone. When there was no N AACP, Urban League or NCNW, there was a Flanner House. 1 am not suggesting these organizations do not need your support. Of course they do. I am only suggesting that supporting everything else should not be at the expense of Flanner House, the granddaddy of them all. Now, talk to me somebody. Chris A. Rarimu executive director, Flanner House

Miss Black Expo Pageant was nice; but not building

I recently attended the crowning of Miss Black Expo and the performance was on the best I have ever seen. These ladies were beautiful, talented that are pursuing careers in various fields. What I saw was the future African-American women we can be proud of. But I was disappointed these Black women had to perform and spent their exciting times in a building with no air, plus the smell was terrible. The Theatre in which the pageant was held needs to be condemned. We as Black people need to

have a theatre of our own. It’s time to stop renting. It’s time to stop saying we don’t have the money. We need to just put our assets together. It is up to us to buy our own hotels, stores, schools and restaurants. I attended a Concerned Clergy meeting where they spoke on African-Americans uniting to work on and make things better for our children. I pray this was not just talk. Did we all die when Dr. King died? Black men stand by your women and children, for they need you. Carrie Montgomery

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