The cover story from Business Week's Aug. 14, 2006 issue took me back to a conversation I had with an old boss a few years ago when I was writing about minority businesses as a reporter in Baltimore. The publisher of the paper I worked for at the time -- a white guy in his early 50's -- had just given a speech to a group of mostly black businessmen and in a conversation in his office afterwards wondered out loud why it was that the entrepreneurial culture that sustained immigrant communities like the one his family sprang from hadn't produced the same benefits in black neighborhoods.
One part of that answer, I think, is that black folks in this country still suffer a host of pathologies left over form slavery/Jim Crow/Reganomics/pick-your-period of bad times for black people. But that's way too simplistic an explanation: black folks ain't hardly the only people in the United States who've had it bad, and yet everyone else -- from white Europeans in the 20th century to poor Hispanics with little education and little fluency in English today, seem to realize more than we do that the real way to gaining a foothold in America is through owning homes and businesses.
Which brings me to the Business Week story, about the latest generation of geeks getting rich starting Internet media companies. No surprises here: of the 10 young moguls featured, not a one was black. That, of course, could have as much to do with Business Week's editorial judgment as anything, but giving them the benefit of the doubt, I write for and read Black Enterprise faithfully and can't remember coming across too many stories about young black people with companies outside the entertainment world that are getting valuations in $500 million range.
So I read the story and came across some interesting tidbits: "...the cost of jump-starting a good idea has plummeted. At the same time, the sources of money have multiplied," it says. It explains how Kevin Rose, founder of Digg.com, a company valued at $200 million, "withdrew $1,000 -- nearly one tenth of his life savings" two years ago to start the site, and how he grew up in a three-bedroom flat in "standard middle class America."
So let's get this straight: "Standard middle class" people are starting companies with as little as a grand and an idea, there's money being thrown at them to fund said ideas left and right and the potential payoffs are enormous. Yet, no black folks anywhere to be seen. Anybody got a halfway decent idea why?
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4 comments:
too caught up in the pyramid scheme?
again, i'm convinced this is the key to our stagnation.
I think it also has something to do with blacks not realizing the importance of their dollar. Other ethnic minorities spend within their communities and support minority owned businesses - either out of necessity (since most mainstream places don't have Spanish or Portugese interpreters), or out of convenience.
As far as why blacks haven't jumped on the business bandwagon? I think it's mostly because a lot of us can't see past the stereotypical images of a dude with a beatbox/turn table/microphone and a dream. We think music (or basketball) is the way to make our money. Simply put: we have tunnel vision.
I have been wondering about these questions for some time myself, especially because of the current events in my life. Firstly, after having decided to return to school to get my PHD, I took a job where I am extremely underemployed and underpaid, the other is that I myself am I immigrant, and hold the distinction of a triple minority, i.e., Woman, Black and Immigrant.
To be brief about the socio-economic transactions I witness on my job which is in manufacturing, (and more importantly, it's relocating to Tijuana in the Spring)that all of the immigrants on my job are students, while all the older African-Americans are full-time, this being their main job, work overtime everyday, and oh yeah have been there for years. What's going to happen to these people now when manufacturing jobs as a how are heading South and they have remained low-skilled for years?
I will let you draw your own conclusion, but my feeling is there is a general lack of hope, ambition and contentment that permeates out community. Many urban black people are accostom to accepting the status quo. Like many immigrants they grew up knowing that they is more to life that the lot they were given. Unlike immigrants they don't strive to come to America to realize that dream of a better life. They have conversely been subsisting on the margins of their own American nightmare actually, having just enough to eek out a living, but never looking beyond their allotted "social standing" in life. It's systemic, and racist, you know have to look any further but our urban schools to see that it was created to domestic and not liberate.
Sacrificing for tomorrow and having a plan is another big piece of the "not building wealth pie." I could never understand why for instance, many people resent certain immigrant groups, how come over here, eat rice balls, and live in one room apartments with 16 people, to be able to save and open up a small business is 5 years. I'll posit that, we are a people who by into the consumer/disposable culture, we live for today, wanting everything now, despite it being empheral, than doing the hard, unsexy work, to realize the vision of tomorrow. It's called hope and believing in self and a better life. We want that lexus now, even if we have to live at our mothers until we are thirty-five, and work two jobs. Many immigrants now what not having is, so it's no biggie (like myself, when I have to go back to existing on the basics to get what I desire. I can go on talking about this for some time but I'll have to stop here. I have pontificated enough
I too read the article in Business Week and made the same observations. Partly because thats my job as a technology media personality ( http://www.MarioArmstrong.com )
and analyst I look at the news and issues of the day thru the lens of technology. I have been covering, writing and interviewing the types of folks mentioned in the article for the past 10yrs. I honestly believe that the article didn't do enough due diligence on research to find more diversity in its choosings. THERE ARE plenty of African-Americans in technology that have done extremely (in millions) well for themselves BUT they are being overlooked. Partly because their businesses lack the 'sex appeal' of today's internet times. By that I mean many of the people in the Business Week article are viewed as cutting edge technology entrepreneurs (editors had an overwhelming focus on Silicon Valley). To their defense some of the ppl listed have created whole new categories of business. Many of the African-American tech entrepreneurs I know aren't neccesarily creating new categories of business with major success - quite a few are succesful with Gov't contracts and telecommunications and networking services (this in today's times may pay big money - but is by no means sexy). SO consequently, some of these worthy entrepreneurs are overlooked. If you want a list of names I could post them.
REASON #2 - Some black folks are taking way too long to fully engage with technology!!! Older adults who have passed the technology tipping point aren't readily embracing and making the investment in technology for the youth in the household. Black households HAVE to place a level of VALUE of technology in the home. Lack of technology competency today = 21st cent ILLITERACY!!! Many kids today are MAJOR consumers of technology but NOT producers. BUT we are at a moment of opportunity if we take hold invest, learn software development,try out technical solutions to real-world business problems. Look I just read how Microsoft is opening up its software for people to create their own video games to be distributed on the Xbox360. For those not close to the video game or tech biz this type of announcement goes right over your head. But for those in and around the field - for the first time you realize that this means young inner-city kids with a little guidance and know how could eventually create the next Video Game multimillion dollar blockbuster hit!
I said enough but lastly! How come we are the first to make technology cool but not the first to profit off of what we just made cool for someone else. Take the Beeper - a tool for Doctors and Lawyers - urban market takes hold - makes it hot and it becomes the must have fashion. Remember those days - pink, purple and neon pagers. MOVE the MENTALITY from consumption to creation and ten we will see some better results.
MA
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