This article is a followup to our series on Dr. Claud Anderson’s Powernomics principles. If you have not read Powernomics, add it to your bookshelf using the link below.group economics, and3. as Black entrepreneurs and customers, we abandon our communities leaving them vulnerable to exploitation.Keep reading to gain a deeper understanding, and to learn the Powernomics Principles we can use to change our economic destinies.
Other Groups Have A Cultural Advantage Over The Black CommunityThe strongest advantage that immigrant groups have when it comes to saving from, starting, and investing is not tax breaks or rich parents back home, but it is their culture of collectivism, cooperation, and contribution.Immigrants arrive in the United States in groups, sleep in the same house together, carpool or rely on public transportation, and eat from one large shared table, all working menial jobs and saving to open a business. After a few short years, the group has saved enough to open a store.Members of the group work together in the new business while also supporting it financially until it yields enough to support itself, its owners, and its employees – who all belong to the same group. This group is still spending very little on other expenses, since they live, eat, and drive together. They are able to spend much less than they earn.In 5 years, that group has made enough to buy homes and card for all the individuals, support other businesses, acquire business loans from their low debt / high cash operations, and have laid the foundation for the next generation.But Black Americans have swallowed whole the white values of individualism and consumerism.In an attempt to out-Bougie one another, Black consumers use their $1 Trillion in buying power to purchase luxury cars, clothes, alcohol, and electronics.This insane spending spree leads to debt, which then leads to permanent employment to feed their need for overpriced consumer goods.Other groups use their buying power to but assets – not liabilities.If we are not willing to return to our original values of collectivism, cooperation, and contribution, then we will remain customers and employees.
Black Entrepreneurs Refuse To Put Up A FightBusiness is a bloodsport. The winners feed their families and secure their futures. The losers become slaves and dependents.Other groups understand this. We do not. In fact, you often hear Black businesses saying ‘we are not here to take business away from anyone else!’Compare that to what white and other entrepreneurs have said in the past…
Killing Your Competition is STILL the American Way!” … “If any of my competitors we’re drowning, I’d stick a hose in their mouth and turn on the water.” – Ray Kroc McDonaldsBlack entrepreneurs have failed to compete with foreign owned businesses in their neighborhood.To illustrate this point, Black hair supply stores are owned by Koreans. In the book Hair Story: Untangling the Roots of Black Hair in America, co-author Lori Tharps noted “before the influx of Korean-American shop owners, there was no one serving the African American market in this way.”
Black Entrepreneurs abandon our communities leaving them vulnerable to exploitation.Black entrepreneurs tend to seek out non-Black areas to establish their businesses. Citing excuses like ‘the crime rate is too high’ or ‘there is no money in the hood’, these entrepreneurs tend to take their goods and services to mixed or white areas.While we run from our own people, other groups move in, establish businesses, and skim the Black dollar out of the community.Black entrepreneurs and shoppers also tend to spend their money in mixed or white neighborhoods, since there are so few Black owned businesses near them. Too few black entrepreneurs and too few Black customers supporting them leads to a loss of the Black dollar.
“Currently, a dollar circulates in Asian communities for a month, in Jewish communities approximately 20 days and white communities 17 days. How long does a dollar circulate in the Black community? 6 hours! Black American buying power is at 1.1 Trillion; and yet only 2 cents of every dollar black spend in this country goes to black owned businesses.”If we recognize that our Black neighborhoods possess the same needs and the same buying power as other communities and move back into our hoods, we can increase the number of socially responsible citizens who have the will and resources to invest in the places we live.That alone could transform our communities overnight.