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We Know How To Do It
Our nation knows how to develop entrepreneurial enterprises. The fundamentals of developing minority businesses are done the same way. Making it work within the politics of a community requires some finesse. When it comes to minority business development as an economic development tool there are at least three ideas that must be considered.
1. Make minority business development about business success and not social impact. Do it right and the community will get both. Even the best of initiatives often cross the line back to trying to fix social ills. For example, some communities measure the success of minority business development efforts by how many low income people are employed and how many minority businesses locate in low income areas. Whom a firm hires and where they locate has no business being a means to evaluate the success of any business. If the effort is about economic impact, measure it on those terms. There is substantial evidence that minority businesses will disproportionately locate in the urban core without the artificial incentive.
2. Focus on the businesses and entrepreneurs that can deliver the desired economic outcomes. Jobs, capital investments and the other primary economic drivers for a community come from businesses that can grow to scale. Every successful business in the community is important and has a chance to add its own unique value. Every entrepreneur also has the right to try to build a successful business. These efforts should be supported and in most communities they are. But every business is not designed to create substantial economic returns for the community. There must be a focus of resources on growing the minority businesses that have the opportunity to create a significant number of jobs, invest in substantial capital improvements and yes, even to accumulate substantial wealth for owners and investors.
3. Make it important. If it is important it should look it. Bring the same approach used for other significant community commitments like convention center expansions, new sports venues and the redevelopment of historic neighborhoods. The blue print for success is the same. Do the same planning. Involve top talent. Engage consultants to enhance community expertise. Invest the same type of resources. This approach rarely happens because in most communities minority business growth is not important as an economic development tool. It is a defense against some social downside or a response to race related pressure. Poor planning, weak talent, and limited resources will yield weak results. This outcome is happening everyday in minority business development initiatives around the country.
Minority business development is one of the top economic development opportunities in most communities. Many communities are struggling to deal with the complex emotions and baggage that surround all issues related to race. This added level of political matrix threatens to rob communities of this growing opportunity. Making minority business development a real economic tool will take what every important community effort takes: strong leadership, effective planning, focus and resources. This is an economic opportunity a community can influence and the timing has never been better.
- Dr. Mel Gravely is the developer of COMSDA.com, an on-line benchmarking tool for supplier diversity programs.
- He is also the author of When Black and White Make Green: The Next Evolution in Business & Race and the Managing Director of the Institute for Entrepreneurial Thinking.
- E-mail Dr. Gravely at This email address is being protected from spambots. You need JavaScript enabled to view it.
- © Melvin J. Gravely, II 2006
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