Celebrating Black Business

Frederick E. Jordan didn’t have many financing options when he started his engineering and construction management company in 1969. For the first six months, he ran the San Francisco-based business part time out of his home. Today, F.E. Jordan Associates Inc. comprises three offices nationally and trumpets an impressive record of more than 1,000 completed projects, including the resurfacing of President Obama’s street in Chicago’s Hyde Park neighborhood. Clients include the cities of St. Louis and Chicago, Bank of America, Procter & Gamble, the transportation departments of Washington and California, and the U. S. Army Corps of Engineers. Jordan’s work in engineering, urban design, and environmental planning stretches across the United States, Africa, and Central America.

In spite of its rough start, Jordan’s company has clearly prevailed. He’s also witnessed a dramatic improvement in race relations in his 41 years in business. One might assume that his success would inure him to the gripes of today’s young black entrepreneurs, but it hasn’t. “Their complaints are valid,” Jordan asserts. “It’s very difficult for black businesses to survive. Their obstacles are enormous.”

In an effort to draw attention to the needs of black entrepreneurs, Jordan, in 2004, teamed up with John William Templeton, president and executive editor of eAccess Corp., a scholarly publishing company, to have August recognized as National Black Business Month.

During the 31 days of August, Jordan and Templeton want local government officials, community leaders, and venture capitalists to focus efforts on creating a more hospitable environment in which black-owned businesses can grow. Jordan

believes that supporting black business is the best way to lower the high rate of African American unemployment. “Economically, we’re way behind our ethnic counterparts,” says Jordan, who sits on the board of California’s small business council and is president and chairman of the San Francisco African American Chamber of Commerce. “Most African Americans are still in a dire economic situation.”

Indeed, since 1990, black households have earned the lowest median annual income of all races. The 2007 median income for black households was $34,000; for Hispanic households it was $39,000; for white households, $52,000; and for Asian Americans, $66,000, according to the most recent data from the U.S. Census Bureau.

“Our research indicates that there should be 2.5 million African Americans in business, and we only have half that many,” says Templeton. “If you look at the black and white unemployment disparity, the essential idea is, the only way we’re going to get the level of employment we need is to support black businesses.” As of April, the black unemployment rate was 16.5%; the white rate was 9.0%.

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Jordan and Templeton reason that dedicating a month to black business best draws attention to their cause. They chose August after their research revealed it was the month in which most black family and social events occur. They also believe that increasing elected officials’ awareness of black business, at least one month a year, may help to yield economic policies that would be more favorable to African American entrepreneurs.

From the outset, recognition

of National Black Business Month has been inconsistent, and it is still a work in progress. To help gauge its effectiveness, Templeton is creating a database of venture capital raised as a direct result of coordinated National Black Business Month programs.

Last year, 20 states–among them Maryland, Michigan, and Florida–recognized the month in some form, says Templeton. Jordan and Templeton initially sought state proclamations as a way of promoting the month. Requirements for securing a proclamation vary by state but generally involve writing a detailed letter to the governor and waiting weeks, if not months, for a response.

The two have been most successful in getting community libraries to observe the month. Nationally, librarians have committed to posting on bulletin boards resources for entrepreneurs and information that celebrates black-owned businesses. Now in its sixth year, National Black Business Month is recognized in more than 300 libraries across the country, Templeton says. In addition, many local chambers of commerce observe the month.

While organizing National Black Business Month, Jordan and Templeton were sensitive not to overshadow the work of Los Angeles activist Muhammad A. Nassardeen, who had set aside April as a local Black Business Month. Nassardeen, who died in October 2007, founded Recycling Black Dollars, an organization that promotes black business.

One underlying goal of Jordan and Templeton’s efforts is to generate collective awareness and support similar to that of the Civil Rights Movement. “We need a resurgence of some of the tactics used in the 1960s,” Jordan says.

Templeton acknowledges the problems that some African

American consumers encounter with black-owned businesses. But he also points out that, too often, black patrons allow these businesses only a narrow margin of error. Also, when a consumer receives poor service at one black-owned business, it tends to cast a long shadow. “I try to impress upon people that even if you get lackluster service, it is in your best interest to find a way to do business with a black-owned company,” Templeton says. Jordan notes

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that African Americans seem less concerned about supporting black-owned businesses. “When black consumers lived in black neighborhoods, they were sensitive to black businesses,” Jordan says. He attributes the somewhat diminished role that black businesses now play in the lives of many African Americans to the growth of diverse suburban areas.

“The key idea of National Black Business Month is that redirecting a small portion of our individual spending would dramatically increase the sales of black-owned businesses,” says Templeton. Take Dolores Nehemiah Ph.D., of Los Angeles, for example. After recovering from a heart attack, she got a group of her friends together to buy a CT scan for a local black doctor who had helped save her life. “Now neighborhood residents have access to regular screenings for telltale signs of strokes, heart attacks, and aneurysms,” Templeton says. “When you support the businesses in your own community, you support yourself.”

The official Website, www.blackbusinessmonth.com, lists 31 practical ways to support black-owned businesses in August, from making a deposit in a black-owned bank on Aug. 1 to visiting a cultural festival on Aug. 31.

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Set aside money for purchases within the black community. One thing a family can do is establish a budget for shopping with African American businesses. During August, they can use the 31 days to determine which companies are convenient to them that offer good service and fair prices, and come up with a plan for patronizing them. For instance, the Mo’ Better Food Market in Oakland and the Harambee Farmers Market in Los Angeles provide opportunities to buy produce from black farmers. The budget should include any additional travel or time adjustments that need to be made.

Visit black-owned hotels when traveling. Make a habit of seeking out hotels owned by members of NABHOOD, the National Association of Black Hotel Owners, Operators and Developers, when you travel. These hotels can be found in practically any major city, often in prime travel locations.

Do business with other black entrepreneurs. If you’re a black business owner, use National Black Business Month to identify other black-owned businesses as potential vendors. This will help create and sustain jobs for African Americans.

Connect with state and local officials. Find out how much your city and state spend with black-owned businesses. “If there are policies that impede doing business with them, speak to elected officials about changing them,” says Templeton.

Jason Evers Robers is a freelance writer for Black Enterprise.