Showing posts with label black-owned businesses. Show all posts
Showing posts with label black-owned businesses. Show all posts

Sunday, January 27, 2019

Black-owned businesses took a disproportionate hit amid shutdown

William Michael Cunningham October 20, 2013

The partial government shutdown did not impact all businesses equally. My research indicates black-owned businesses were hit harder than most.

Many are located in states that receive substantial federal aid, such as Maryland and Virginia, and they tend to be in industries such as health care, administration, transportation, professional services and retail that are sensitive to any decline in federal spending.

As a result, these companies can experience a double hit. I estimate there are roughly 1.9 million black-owned businesses in the United States, and they generated $131 billion in 2012. That suggests the monetary impact of the shutdown on their businesses to be $10 million per day.

We saw the effects. National parks and federally owned museums closed. Tourism, a major industry in the D.C. area, was, as a result, negatively affected. This impact will be felt for some time, since overseas offices that give visas to foreigners seeking to visit the United States are just now reopening. At least 800,000 federal civilian workers were furloughed. Many chose to save their money instead of spending it at restaurants and other retail outlets in the District during the shutdown, driving down retail sales and further damaging local businesses, including those not directly affected by the shutdown.

This is just the beginning. Perhaps the most damaging impact is the message the shutdown sent to citizens, businesses and investors. It shows that, when partisan political issues are at stake, certain factions will not hesitate to damage the public interest.

Now we see that even if you “pull yourself up by your bootstraps” and manage to create a successful business, the policies of some politicians who claim to be supporters of small businesses can still damage you.

Originally published in the Washington Post. See: https://www.washingtonpost.com/business/capitalbusiness/black-owned-businesses-took-a-disproportionate-hit-amid-shutdown/2013/10/18/35d14c0e-35b1-11e3-8a0e-4e2cf80831fc_story.html

William Michael Cunningham is a University of Chicago-trained economist, a graduate of Howard University and a native Washingtonian. His opinions are not an official statement of the U.S Black Chamber of Commerce.

Friday, July 14, 2017

Black Business Index & Survey

We are conducting a survey of Black Business Conditions as we prepare for our Texas Talks (see above). Note that you do not have to be either in Texas or a Black-owned Business to fill out this survey. In fact, we prefer to have a range of business owners respond. We are, however, specifically focused on the Black business sector in Texas.

To view and complete the survey, please go to: https://www.surveymonkey.com/r/NCVQLLL

Thank you!

Saturday, March 25, 2017

Business under Trump

We recently gave a talk to the Greater Houston Black Chamber (GHBC), at their monthly Business Luncheon “2nd Tuesday with the Chamber” on for February 14, 2017. The link at left is to a video of the discussion. I described the current economic environment for black businesses in Houston and provided a forecast for 2017. 

"Founded in 1935 as the city’s first African -American civic organization, the GHBC has evolved into an active participant in the City of Houston’s socioeconomic process. The organization is a 501(c) (6), not-for-profit, private, member-driven organization that serves the Greater Houston Area.  The GHBC is dedicated to supporting African-American small businesses in the areas of education, certification and accessing contracting opportunities and capital."

See: https://youtu.be/toYeng7PlRQ

Friday, March 12, 2010

Federal agency orders Ideal Federal Bank to find a buyer

From the Baltimore Sun, March 11, 2010 by Jamie Smith Hopkins

"Ideal Federal Savings Bank has until March 31 to find a buyer, a deadline set by the Office of Thrift Supervision after the federal agency determined the small Baltimore institution was undercapitalized.

The bank — which opened in 1920 to combat rampant discrimination in lending — is one of the oldest continuously operated black-owned businesses in the country, according to Creative Investment Research, an analyst of minority and women-owned banks."

See: http://articles.baltimoresun.com/2010-03-11/business/bal-idea-bank-0311_1_federal-agency-women-owned-creative-investment-research