THE BLACK BUSINESSMAN: OBSTACLES TO HIS SUCCESS Author(s): DEMPSEY J. TRAVIS Source: The Black Scholar, Vol. 4, No. 4, THE NEW BLACK BOURGEOISIE (January 1973), pp. 19-21 Published by: Paradigm Publishers Stable URL: http://www.jstor.org/stable/41163617 . Accessed: 08/07/2014 00:10
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THE BLACK BUSINESSMAN: OBSTACLES TO HIS SUCCESS by DEMPSEY J. TRAVIS black businessman, at some on between time,reflects the disparity he the effort puts into his businessand the whichhe obtains compared whites as results to in the same business. matter No how hardhis employees work nor how successful the business is, production and profitsremain small and insignificant the scale of total on and racist American businesses because racism whitesfrom black patronizing practiceskeep businesses. On the other hand, black conblackbusinesses an extraorto sumers support black businesses dinary degree. Although provide only 2% of the goods and services black familiesspend needed by Americans, from10% to 20% of theirincomewithblack businesses.This takes some doing because black businessesdon't offer many high cost itemsin heavy demand such as automobiles, clothesor T.V. sets. Most black businessmen don'toffer that anything costsmorethan$100, homes. Yet, whatever we do offer, except blackfolk no buyand practically one elsedoes. In the NorthCentralregionin 1969, black businesses grosseda total of $1.188 billion.If we assumethatmostofthisincomewas due to we the patronageof black customers, need of dividethisfigure thenumber black by only thatabout$1,240 in families theregionto find or 17.9% was spent out of a familyincome it In $7,000annually. theSouth, was averaging $880 or 17.8% per familyout of a family income averaging $5,000. The percentage dropsto 16.7% fortheWest and 10.7%forthe Northeast. Possiblyno otherethnicgroupin as is thiscountry as loyal to itsbusinesses the black group.So if we are goingto look fora remedy for the plight of black businesses, to to trying get theblack consumer buyblack should is notpartofit."Buy Black" campaigns be aimedat whites.

A remedyI want to proposerestssquarely with the trade associations representing Trade in businessmen every industry. minority associationsmustlead the way because they it understand best. Blacks mustkeep pushing in to foropportunities do business thegeneral with to for and of Travisis President Chairman the markets, opportunities do business Dempsey Bankers of and for the municipal, state and Federal of Board Directors United of Mortgage black-owned America, Inc.,thelargest and above all, protest when mortgage governments, founded in intheUnited States, banking company makeitharder and regulations racistpractices Mr. Travis is 1953. Active in urban affairs, to do business.An example which illustrates in of President theDavisRealty Comapny Chicago. it of United and making regulation He isfounder President the Mortgage the pointof government of harder for the minority businessman to association Bankers America, a national of Inc., in bankersfounded 1961. He black mortgage in There are regulations operateis as follows. in Roosevelt the received B.A.from University1949 the Department of Housing and Urban the and completed M.B.A.in mortgage banking which say to the minority in Northwestern from University 1969.His essay, Development in is available a Black churchwhichwantsto sponsora low-income "The1972Homestead Act," "Your plan is good,the World Foundation housing development, reprint.
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need is there,but the people who will live there all blackand thatmakesyourproject are poor. You mustgive me a verygood reason shouldhelp an all-black whytheGovernment or we won'tapproveit. project, "By the way, don't say that there is discrimination againstblacks in the suburbs. And, don't say suburban authoritieswon't permit low-income housing in their comreasonsare notacceptable." munities-those

the WorldWar I whenhe founded Universal in Association New York NegroImprovement it At the peak of that movement, has City. been estimated that the membershipwas between four and six million people. The on was grounded Marcus Garveyphilosophy black economics.

was the Moreover,the Garveymovement morethan thateverattracted convention only as who could be identified 6,500 individuals in businesspersonsor stockholders a business which means that thereis an orenterprisethat the A here are many other situations job businessman faces that are similar ganizational to be done, and thisjob can minority minorities must only be accomplishedwith dedicated black and as subtle.Blacksand other has leaders.Thisleadership minority have a voice in thehalls of commerceiftheir and other thoseof us who from to come as a consensus are to become viable oases in communities of and the understand history problems black A wastelands. to contrast becomingAmerica's hand as well as the problems of folk first be voicestrong enoughtobe heardmust joined othersto become a choir when political business enterprise. Leadership can't be by super-imposed upon us by an appointor. muscle is needed to open new doors forciLeadership roles also cannot be played by of USA. The jointmeeting tizensin Blackville, those sittingat the banquet table with the United Mortgage Bankers of America, Nameal ticketstamped"PAID BY SOMEBODY and of Contractors tionalAssociation Minority of theNationalOrganization Black Architects ELSE." 1972 in Washington, D.C.) was (September Black Trade towardsconverting the first step Associations fromclub statusto institutional Xherefore, we must look at the new blosand entities, also a tuning processto make up soming associations and say to them and certain that the choirs' last chorus is loud, ourselves that the grants that they have clear,and understandable. and the receivedfrom poverty programs other Presently, there isn't a single voice will be for businesses aids to minority special the representing 322,000 businessenterprises naught, out of theseassociations do not we if operated and owned by minoritiesin this financialenbuild new growth-promoting There is not one singlevoice forthe country. to thatwill relatedirectly theblack terprises whichare owned 163,000oftheseenterprises, communities. and minority by blacks, or one spokesman for the to Commercialbanks are beginning show 100,000 which are owned by approximately to theway.We mustcontinue organize banks, Spanish-speaking Americans, nor for the of course,but we mustalso devisevehiclesto 59,000 which are owned by remaining dollarintoblack American Indiansand Orientals. 1969,gross channeltheblack investment In We cannot wait for the normal businesses. were in excessof receiptsforthesebusinesses course of events to produce the investment $10.6 billionannually. houses and mutual fundsand real estate inwhich are needed to feed a trusts vestment The firstimpressive movement for orWe economicsegment. black-owned growing ganizingblack businessestook place in 1900 didn'tget intothisdesperatecondition the undertheleadership BookerT. Washington of by We of whenhe founded NationalNegroBusiness normal the working theeconomy, gotthere and massmovement of conspiracy prejudiceagainst by abnormal League. However,thefirst are of blacks in the world took place under the us and theeffects suchthings notin the in 1918following economictextbook. of leadership MarcusGarvey
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in W e mustsitdown together smallgroups first and then in largergroups,to assess our needsand evaluateourchances.We willsettle for no less than our fair share of every blackand white.We willorganizeall marketto to ourresources makethathappen,moving of the experiment in the next plateau pluralism. be of The magnitude thejob thatmust done can only be by leaders in these associations realized when you compare numbers and organization. For example, the American a has of Institute Architects 24,000 members, and a budget in staff excessof90 individuals, that exceeds $1 million annually. In comparison,the National Organizationof Black of has Architects a membership 75 members, to is interesting note and no staff, no budget.It is largerthan the of that the staff the AIA membershipof the NOBA. Anothercomof Association is Bankers parison theMortgage is over2,100,has whosemembership America between 45 and 50 and a budget in a staff excess of $1 millionannually-to the United MortgageBankersof Americawith a memof bershipof 70, a staff 4, and a budget of $85,000.annually. of The NationalAssociation Home Builders in the United States has a membershipof of 51,000,a staff 150,and a budgetin excessof $1 millionannually-as comparedto the National Association of MinorityContractors of of whichhas a membership 2,500,a staff 11, and a budget of $250,000. The Contractors' budget, incidentally,is a by-productof a contractto promote trainingprogramsfor for blacks and other minorities the DepartmentofLabor. If you thinkthese numbersare big, you should see the projectionfor the National of Association Real Estate Boards.They have a of 95,000members, staff 225, and a budgetin excess of $1 million- as compared to the National Association Real Estate Brokers, of better known as "Realtists,"with a memof of and a budget bership 1700,a staff three, that is contingent dues and contribuupon tions. The Realtorsof America understand, and tyackand brownpeople mustlearn,that of capabilityand the destiny their legislative
THE BLACK SCHOLAR 1973 JANUARY,

careers are dependent upon our ability to reach the ears and votes of the lawmakers. With that purposein mind,theyprojectfor 1974, an additional 400,000 new associate whichwill givethema membership members, ofalmosta halfmillion. thereis no reasonfor Since thisis thetrend, black and brown folk to go about passing that resolutions year-after-year will neverbe for lack of legislative clout, implemented which we will not have withoutorganized numbers.Black conventionscan no longer for to afford be springboards mass prayerin thatwe are the formof countlessresolutions to implement.The black compowerless disorcould not be more financially munity ifit tooka coursein economicdisorganized its and followed textas a gospelon ganization to get ahead. This lack of organization how does not spill over into the black social and life. This fact is supportedby hisfraternal toricalevidence. For example,in the 1940's the Elks and Masonic Grand Lodges had membershipsnumberingover 900,000. In 1925, a black womanby the name of Maggie was directly L. WalkerofVirginia responsible in forover100,000members theIndependent Order of St. Luke; and of course,therewere societies between 1900 and many fraternal 1920 that had membershipsin excess of 50,000. It becomes apparent that we must build active and comprehensive organizavigorous, of and enrichment tionsforthe development theblack economy.We mustbegin to regard of the businessesand enterprises our black of economicsectoras structures permanence We efforts. and substance,not as transient must thus develop a frameof mind which regards our economic sector and its inwith as struments a permanentinstitution, We have a social and cultural reality. political and of longtradition powerful activereligious and socio-political organizations.Certainly and sustaining the capacity fororganization is there.What we mustdo as a organizations people is develop an equivalentconsciousness of forthe nurturing our businessinstitutions, and for the developmentof an enlightened mature perspective on black political economy.
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