By: Charles O’Neal
If you’ve heard USBC President Ron Busby speak, you’ve probably heard him tell the story of riding with his “iceman” grandfather and learning the real reasons why white folks’ ice is still colder than ours.
This is about economic development.
There is real science that goes into what constitutes “good” economic development versus what is generally/historically pawned off on Black communities. I’ll try to explain more in depth as I go along, but Black communities typically get economic “activity” NOT development.
The science of economic development – when applied with purpose – should result in the area targeted for impact experiencing reduced unemployment, better quality of life, increased average household income (HHI), along with the added convenience of additional consumer options.
What Black communities have grown accustomed to is additional consumer options (what I call capital export portals!), without the beneficial outcomes associated with “good” economic development. On this, you don’t have to take my word: simply drive through your community and count off the number of enterprises owned by community residents versus those that are present in your community so you don’t have to drive a long way to deliver your money!
Please, please don’t misunderstand me. There are some services/consumer options Black communities (for a WHOLE LOTTA REASONS) are simply unable to – as yet – deliver. Among the things you’ll see on your drive, though, is a proliferation of fast food options. I’ll go out on a limb here, but I think you’ll agree that Black folks do food pretty well. There is NO way Black-owned restaurants/food service providers can grow to competitive scale against the national and regional chains IF YOU SPEND ALL YOUR MONEY WITH THE BIG GUYS (the capital export portals). Haven’t you wondered why there are so few Black-owned national/regional restaurant/food service franchises?
Here’s the thing, though. There ARE Black economic development professionals! They are well aware of what constitutes “good” economic development. But – here’s where it starts getting ugly – THEY COULD NOT GET A PROJECT FINANCED IF IT CONTAINED ONLY BLACK OWNED BUSINESSES!
My point is this: economic activity IS NOT the same thing as economic development. If the net benefit (profit/quality of life/employment) of economic activity in a community enriches those who do not reside in that community… that is ECONOMIC EXPLOITATION!
I hope this underscores for you the importance of studiously, consistently, doggedly and intentionally supporting Black-owned businesses. These enterprises represent the best hope for reinvigorated Black communities, the best opportunity for increased Black employment AND the best inspirational examples for future generations.
Among the solutions to achieving this “cold ice” future is a serious commitment to growing Black-owned businesses to competitive scale. That means doing what real smart people call an environmental scan, looking for opportunities to merge/acquire closely allied companies with an eye toward achieving competitive advantage. Clearly this will be hard, but necessary, work. The outcomes, though, outweigh anything that can be achieved by a solo entrepreneur.
Black ice is cool, but when we get serious, Black ice will be colder than the stuff you’ve been used to!
We look forward to seeing you at the annual USBC National Conference October 7-9 as we explore strategies for delivering cold ice to the communities served by our members.
Charles O Neal is the Chairman of the U.S. Black Chamber of Commerce.
