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• W185855286 abstract "INTRODUCTION By the time Thelma Lewis (not her real name) showed up at the Baruch College Small Business Lab, she had been in business for six months. Her gift shop with products aimed at the Black community was growing, but she was facing a cash crunch brought on by collection problems from vendors to whom she rented booth space in her store. She had begun to believe that the lease she had negotiated was onerous. She had not been able to advertise because the radio station she wanted charged $400 per commercial: ten times more than she expected. Thelma had never produced a budget, a cash flow projection, or dealt with real estate issues. At the Small Business Lab, she took classes in planning, computers, and business law, and she was coached through the process of creating a business plan and dealing with specific issues that were threatening her gift shop. Thelma was able to renegotiate her lease, make more financially secure arrangements with her vendors, and develop a marketing plan that fit her new budget. Today, Thelma's business is still growing and her confidence has returned. On the other hand, Richard Lewis (not his real name), who was working part-time as a security guard, came to the Small Business Lab with a vision of building a real estate empire. He said he was inspired by Donald Trump and his life style and deduced that real estate was a good business. He also thought it would be good for the Black community to have a role model who was a successful entrepreneur in the real estate business. Richard wanted to know what he had to do to make that happen for him. When told that Trump's endeavors were the culmination of fifty years of real estate ventures begun by his father, and that Donald Trump had actually flirted with bankruptcy in the recent past, Richard's enthusiasm began to wane. After taking a few classes on accounting and finance, and having some counseling sessions with a professor to focus his efforts on aspects of real estate that was more realistic, Richard stopped showing up at the Lab. As different as they are, the examples of Thelma and Richard reveal some of the issues faced by Black entrepreneurs. Lack of training, experience, and resources make the task of initiating a new venture a daunting one. Some react by becoming discouraged even before they begin; others, like Richard, are simply unrealistic. It is widely accepted that entrepreneurship is the engine of economic growth. Between 1987 and 1992, 90% of new jobs were added by companies with fewer than 500 employees. Firms with fewer than 20 employees added more jobs during the period between 1985 and 1995 than did firms with more than 500 employees. Today there are 13 million sole proprietors in the U.S. and their ranks have been growing at 3% yearly for more than twenty years. This trend has largely bypassed Blacks. Light and Rosenstein studied rates of entrepreneurship as measured by self-employment in 167 metropolitan areas and concluded that Blacks are at the bottom of the scale. Neither the causes of this phenomenon nor its cures are obvious. This study compares two groups: white business owners in mid-size cities and suburban areas and aspiring Black entrepreneurs from inner city neighborhoods in New York City. One group consists of established, well-off, mostly male, business owners with an average of 13 years experience in business ownership. The other is poor, over 40% unemployed, with little or no business experience. We wanted to know just how large the gap was between these two groups on their motivations and goals for starting or operating a business. Could differences in motivations be part of the reason that Blacks lagged so badly in entrepreneurial activity? HISTORY OF BLACK ENTREPRENEURSHIP Throughout history, Blacks have been subjected to factors unique among ethnic groups, including forced migration and a century of slavery. Despite these negative factors, there has been a long tradition of Black entrepreneurship. …" @default.
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• W185855286 date "1996-09-22" @default.
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• W185855286 title "Black Entrepreneurship: It Has a Past and It Can Have a Future" @default.
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