The importance of Black businesses to the community

Public Policy Committee Op-ed--*Challenge of Creating jobs in the area means finding”the riches in the niches” –A Response (ajc 7/19/09) The Sunday July 19th Editorial page carried two very important articles on Economic Development thought for the Atlanta Metropolitan area. On behalf of the Black business community, we wanted to add another voice and view to this important discussion. One of the “niches” universally overlooked is the economic might of the Black business community. The Black business community along with the small business sector is universally discussed while being ignored. It is widely recognized that small business are the backbone of job development and growth but their inclusion into the leadership factor of our cities and states are ignored. It is almost non-existent except for statistical sociological purposes. However, this important sector is a niche in plain sight that provides important economic benefits to the community. It is perplexing that while Black and small business are credited with job growth and development they are not actively included in the important things that a region must get right if it is to succeed over time. In these current times this sector has been ridiculed and assailed along with other “minority” businesses as a social parasite not contributing anything but taking away from the rest. While a closer examination will reveal a “diamond in the rough” for example a recent economic impact study conducted for the Atlanta Business League revealed that Black businesses in the metro area have an overall economic impact of $24Billion while employing over 52,000 people and causing the additional employment of 155,000 more persons. Never-the-less, even in disdain, this sector undergirds the Black community and without its active existence the city without would be more destitute. It is time to increase the investment of support through contracts and financial support to enable this engine to pull its own weight and lead the growth of the inner cities, “pay their economic rent,” so-to speak. While it is true the per capita income of this segment is lower, it none-the-less, is a positive contribution to the overall per capita income of the region. The Black business community provides an identifiable Return on Investment (ROI) which is an important indicator of overall contribution as well as a response to the support given. If the city and all reporting entities stated the efforts of their support in jobs retained and created it would be easy to see the contribution versus the clouds of purchasing or even loans provided. Plus, these efforts can be measured and monitored and managed by economic development leadership! Black business leaders should also be included within the economic leadership of the community and not as simply a member of the larger corporate entities but in full partnership having a seat at the table representing the Black business sector. When this happens it makes it clear that this segment is 931 Martin Luther King, Jr NW Atlanta, GA 30314 404-584-8126

important to the overall health and welfare of the metro area not simply a diversity initiative to all who have involvement. In a recent Op-ed piece, published July 19th, in the Atlanta Journal Constitution, Mr. David Radcliff of the Southern Company stated: “Now is the time to sharpen our strategy, help our existing companies grow, adopt progressive state policies and collaborate across the region and state”. It is indeed that time! Let’s stop the legal and arm twisting efforts that thwart Black business growth and development and join the investment approach of doing more business with Black businesses and having them continue and accelerate their contributions to economic growth. For, example, the Atlanta Business League has passed a resolution urging everyone and everything to increase their spending investment with Black businesses by 5% per year as an investment in job creation and community stabilization. It is estimated that such spending investment would cause the creation of almost 24K jobs in a year with almost 75% being with Black businesses, and given their general location, contribute to our cities well being and create a sustainable competitive advantage over other cities across this great country. We knock but do you hear? Joseph R. Hudson, Vice Chair Public Policy Atlanta Business League 931 Martin Luther King, Jr NW Atlanta, GA 30314 404-584-8126

The importance of Black businesses to the community

by Joseph Hudson on Jul 30, 2009

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The importance of Black businesses to the community — Document Transcript

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