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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (July 8, 1976)
Page 2 Portland Observer Th ly, July 8th. 1976 Where does the money go? We see the world through Black eyes Universal child care: 4 Ford makes the rules President Ford has suspended a decision of the U.S. Office of Civil Rights that ruled mother-daught er, father-son type affairs in the schools to be discriminatory. Possibly this decision was nit-picking - a bit too stringent on the apparently innocent social gatherings. On the other hand -- there are some children who are left out: some don't have fathers, others don t have mothers; little girls will never make the father- son banquet their brothers enjoy. This ruling came as the result of a request by the school district in * cottsdale, Arizona, so apparently someone had a I roblem. O f more importance, however, is the way in which President Ford wiped out a ruling with which he disagrees. It was a largely insignificant matter this time, but next time it might be a ruling which addresses the more important aspects of the Civil Rights Act. He might even decide to disagree with the safeguards against discrimination in employ ment, and w e know he is against busing. Would it not have been better to hold his temper and ask for a review of the ruling, offering the reasons why he believed it should be changed? W e agree with Superintendent Robert Blanchard who said he believes there are more important aspects of the Civil Rights Act to deal with. "I'd rather deal with employment practices, sexual stereotyping and other aspects of discrimination," he said. W e, too, wish the more important aspects of discrimination could come to the attention of Mr. Ford. W e believe his influence could be a great factor in bringing peace to Boston and other cities torn apart by the busing issue if he would take a hard, fast stand on the side of the law. BLACK HISTORY by Yvonne Brathwsite Burka Copley News Service Agenda for 1977 The National Commission on the Observance of International Women's Year hos recommended that the government provide child care to all families, regardless of income. The report warned that the nation faces a shortage of child care centers at o time when employment of mothers is increasing. In spite of continuous efforts over the past fifteen or more years for universal child care, less than one-sixth of the need for care for children under six years is being met. Congress passed a bill in ,972 that would have provided care for children who are of middle-income families, but it was vetoed by Richard Nixon. Congress has been unable to pass broad chid care legislation since. Good, free child care should be the right of every child in the United States - just as a free education is a right. Coverage for every child would elim inate the current problems that Oreogn is facing -- with the major dispute being who will handle the money (Childrens' Services Division or 4-C) rather than how care is provided. It would end the farce of closing centeres in one area of the city, w hile continuing to open new centers in other areas of the city. The need for universal child care is here -- and this is one of the issues that must be addressed by the Black* in the United State* ipend $54 billion a year a* consumer*. What do they buy? They buy the same thing* that everyone el«e buy*. Black* spend money, but they are not part of the business commi nity. Black purchasing power help* the Black community only as long as it sUys in the community. If these dollars can be spent in the immediate neighborhood, if businesses are locally owned and operat ed and if these businesses employ local residents, a dollar can change hands four times before it is carried off in an armor ed car to downtown banks. This idea is nothing new. Ethnic groups and communities have been very success ful by banding together to strength themselves economically. Why have Blacks not done likewise? The records show that of the total number of businesses in America, exdud ing corporations, only 2.7 per cent are owned by Blacks. Of the total gross re ceipts of businesses, Black businesses ac count for only 1.7 per cent. Of the 14.000 banks in the United States, fewer than 100 are Black owned. Of the 962 television stations (commer rial and public), there is only one Black owned station. Of the 7.258 radio stations in the country, only 35 are Black owned, despite the great impart we know the media plays in shaping the opinions of our citizens. We are fortunate to have at least 130 Black weekly newspapers in the country, but only four Black owned daily news papers. There are those who say that Black business has not developed because Biacks brought to America little in the way of business tradition and therefore lack basic business aptitude*. Nothing could be further from the truth. Since Colonial days. Blacks have been shrewd trader* and skilled commercial organisers. The history is long of Black men and women who accumulated enough capital to buy the freedom for themselves and their families and have operated successful businesses. History shows that in time* of prosper ity and an expanding economy. Blacks have been allowed to prosper unchecked. But in time* of recession. Black owned business has been repressed often by discriminatory practices and Black* have been excluded from the work force. As early as 1660. a law was passed in Boston prohibiting the use of Black arti sans. In 1712, Connecticut ruled that no free Black could buy land or conduct business without the consent of the resi dent*. However, following the W ar of 1812, Black businesses developed unimpeded. Blacks operated general stores, clothing stores and other enterprise* for the gen eral public. But. in 1830 and 1840 came the first wave of European immigrant* who challenged "free" Blacks in employ ment and business enterprise. The extent of the suppression of Black business is illustrated by the Maryland law passed in 1852 that prohibited Black* from becoming stockholders in white bank* OR organizing their own. A glimpse at history is important be cause it can give us a more accurate assessment of today's condition*. Few Blacks and Fewer whites realize why Black business is weak. “A RACE IS LIKE A MAN-UNTIL r r uses its own talents , TAKES P R ID E M IT S OWN HISTORY. A N D LOVES IT'S OWN MEMORIES. I T CAN NEVER FULFILL ITSELF COMPLETELY.- JWNUVMD£RCOOK "We know that 80% of the new jobs in Portland will come from growth of exist ing businesses;” said Mayor Neil Gold schmidt. “therefore, the success of small businesses is critical to the Portland economy." Goldschmidt's remarks opened a five- day conference. Salute to Small Business, held during Small Business .Week at the corporate headquarters of the Metropoli tan Economic Development Corporation (MEDCO). According to MEDCO president Harvey L. itice. purpose of the program was “to bring leaders in government, education, consulting, finance, and min ority business enterprise together to dis cuss initiatives that can be taken by government and the private sector to > solve small business problems." 1JM | t, f, i h f* .-anVRi I*» C'♦ Rice said that 80% of all small busi nesses fail within the first year to 18 months. "Too often the small business person think* that extra cash will solve the problems when in reality poor man agement is the cause of financial woes. There are many sources of assistance for the business - consultants, financial insti tutions, the Small Business Administra tion and local colleges snd universities. We wanted to highlight these various services to let the small business owner know where he or she can go for help." In * panel discussion dealing with the specific problems of minority business enterprise. Don Matsuda. minority busi ness representative of the Small Business Administration, emphasized the commit ment of his agency to the success of minority businesses. "We have taken a lead role in minority business develop ment," said Matsuda, “with 1,100 em ployees concentrating in this program area nationally." By far the most common minority (and majority) business pro blem identified by SBA is poor manage ment. Consequently the agency is in creasing staff to coordinate training pro gram* with local community colleges. The Portland Minority Business Opportunity Committee of which Matsuda is also chairman, exist* to enhance minority en terprise through combining local re sources for education snd procurement of contracts. Published every Thursday by Exie Publishing Company, 2201 North Killingsworth, Portland. Oregon 97217. Mailing address: P.O. Box 3137, Portland, Oregon 97208. Telephone: 283 2486. Subscriptions: $7.50 per year in the Tri County area. $8.00 per 1st Place munity Se ONPA 1973 1st Place Best Ad Results ONPA 1973 5th Place Best Editorial N N P A 1973 year outside Portland. Second Class Postage Paid at Portland. Oregon A L F R E D L. HENDERSO N Edit or/Publisher The Portland Observer’s official position is expressed only in its Publisher's column (We See The World Through Black Eyes). Any other material throughout the paper is the opinion of the individual w riter or submitter and does not necessarily reflect the opinion of the Portland Observer. MEMSER Oregon Newspaper Publishers Association MtMBfR Association - Founded ION lure of the United State*. If Black* can be successful in making the Black viewpoint heard and if this viewpoint can be made the basis for ac tion in the corporate boardroom, our eco nomic progress will be significant. The building of minority business is one of the highest priorities of the Con gressional Black Caucus of which I am chairperson. The Office of Minority Busi ness Enterprise in the Department of Commerce is the agency charged with assisting minority business. Only with * strong minority-owned business commun ity can we have a viable economy among Black*. The time for concerted action is now. Conference addressess m inority business new administration. Portland O b server All of u* harbor doubts as to the busi ness acumen of Blacks vhich our common sense makes u* realise are ill-founded. How can Blacks be leaders in fashion, sport* and music and yet be lacking in business skills? History show* u* that continuing and i.isidious discrimination has kept Black* from business strength and the accumulation of wealth. Today we have the opportunity to break this historical pattern in two ways. First, by using Black political strength, legislation can be passed to provide Jobe for all persons who want to work. Black* included. These job* can be created by stimulating private business. This pri vate business can well be a Black-owned business that will reinvest it* profits in the Black community as well as provide jobs. And second, a* pointed out in the June issue of Black Enterprise. Black econom isls are now contributing their thinking to our legislator* and also sitting on pol icymaking board* of corporation*. None nt n a i i n i t a r a a t i m s t e s the strength of cor Honorable I Herrick Editorial Award N N A 1973 2nd Place Best Editorial 3rd Place Community Leadership ONPA 1975 Thomas Boothe, executive director of Contract Management Association, which provides management services and tech nical assistance primarily to minority con tractors, built a strong case for use of consultants by small businesses to over come the management problems cited by Matsuda. “Although we specialize in help ing contrators, corporation* like MEDCO assist all types of small businesses." He commented that there is no official assessment of the minority business suc cess or failure rate in Portland. Although training programs and con sultants are readily available, the panel agreed that it is difficult to attract minor ity person* to educational aid* and ser vices. Boothe said the his corporation spells out the kind of information the client is expected to acquire in order to do business with the firm. He believes the SBA does not go far enough in requiring clients to keep necessary record* and to develop management skills. Allan Bowens, president of Bowen Duncan Accounting Service, commented on some of the problem* he encountered when trying to set up his own business. “Because my previous business had fail ed. a conventional bank loan was not available. MEDCO studied my problem, helped me reduce outgoing money through reorganization, snd this pre vented the firm from going further into a .h t Litton Industrie* was willing to put mise. and after a year, when we had a good track record, we were able to get a bank loan.” Bowens’ advice to other minority en trepreneur* is to market to the total community, not just minority neighbor hoods and be prepared to wait three or four years for sufficient clientele and pro fit. James McMahan. Portland State Uni versity professor of management, and Richard Lane, management assistance Specialist for the Small Business Admini stration, led a later discussion on educa tional service* available to small business owner*. Community college*, state system uni versities. and private universities in the Portland area all offer courses tn aspects orbiAihess miMiemetrt. the Small Bus iness Administration, in addition, pre sent* seminars and course* for no credit in conjunction with community colleges and chambers of commerce meant speci fically for small business managers. Be ginning business workshops, success clin ics, and U n week courses are part of this program. Lane also said that the Portland Chapter of SCORE (Service Corps of Re tired Executives) is located in SBA’s management assisUnce department. This service is free of charge. Bankers representing Portland’s lead ing financial institutions including Conrad A. Rosing. U.8. Bancorp; George W. Go forth. Oregon Bank; Warren Mitchell. First National Bank; snd Bob Howard. Oregon Mutual Savings Bank, told an audience of business owners that lack of management skills anJ information on how to make loan applications are the two major problems facing small business men. OfUn a poUntial entrepreneur ap proaches a lending institution without a proper business pachage and is necessar ily turned down. Banks are willing to Uilor-make loans to fit the need* of appli- cants, but they must have short and long-range goals in writing in addition to a market study just to start the process. The most important criteria used by banks in judging acceptability of an appli cation are repayment ability, success his tory, snd management experience. For the person who has had no experience running a business, but who has technical expertise, the bank representotive* agreed that they would visit the applicant to evaluaU his or her business potential. The panel recommended consulting firm* such as MEDCO to persons seeking to expand and to improve their businesses. Herman L. Brame, Marketing and Pro curement Specialist of MEDCO. inquired - jut the “red flags" that banker* look when making a loan. These are the C danger signal*. r I “We look for the repayment ability, Hosing added. | "His track record is important, said Mitchell. “The cash flow he has available and how he can service the debt." Rosing emphasized the importance of management. “I t makes the difference, he said. “They either have it or they don’t." James V. Paschal. Vice President of MEDCO asked about granting a loan to a potential small businessman who ha* had no experience running a business but has the technical knowledge. Here is where banker* need to counsel with the appli cant and discover if he is a good risk, the bankers said. “We can’t make loan* sitting behind a desk," Bob Howard of Oregon Mutual Saving* Bank observed. “We have to go out and see what the applicant has and what his prospects are." The bankers agreed with Goforth that small businessmen should “spread the beginning businessman should have enough equity to enable the company to support itself and to service the debt, they said. Instead of just a bank loan, other fi nancing means are with the individual’s own savings and to get other investor* to help finance the business. The final day of “Small Businesa Week” was a “Salute to Minority Business En terprise" with a focus on the Local Busi ness Developm ent O rganisation’s (LBDO) role in minority business devel opment. LBDO’s are companies with con tracts with the U.S. Department of Com merce’s Office of Minority Business En terprise (OMBE) to provide information, management consulting, to acquire busi ness-eppertimittaw-eapttoi.-to estaMieh neW>*bMnoogm w ldapand «mating bnsi- > nesses. MEDCO was awarded this type of contract on March 1, 1976. Under term * of the OMBE contract, which runs from March 1st, 1976 to Feb ruary 28th. 1977. MEDCO is to serve 100 client*. 70 from the Portland Metropoli tan area and 30 from the Willamette Valley area of Marion. Polk, Linn, Benton and Lane counties. Following the survey, clients who wish services will be narrow ed to 30 on the basis of feasability of the venture, technical skills, available capital, ana personal credibility. Recently the MEDCO staff along with students from the mid Willamette Valley are* and from the Lane County area are at work in the Portland Metropolitan Area and the Willamette Valley area compiling a list of existing and potential minority business enterprises. The results of the survey will be used by the Metropolitan Economic Develop ment Corporation (MEDCO) to identify qualified or qualifiable businesses for a wide range of management services, pro vided at no cost to the client through a contract with the Office of Minority En terprses (OMBE). U.S. Department of Commerce. Under the OMBE contract, MEDCO will offer management services and technical assisUnce. business pack aging, advice on loan applications and assisUnce in procuring business con- tracU to minority person* who want to sU rt a new business or strengthen an existing one. Minority businesses are those owned by Black Americans, Native Americans, Asian Americans, Chicano* and Eskimos. Any minority currently in business should call (288 9101) or visit the MEDCO offices at 601 N.E. Broadway in Portland and give the foiling information: a. Name of business b. Name of principal owner e. SUndard Industrial Classification d. Address e. Telephone number f. Number of employees g. Bonding capacity Any minority currently not in business should give the following information: a. Name b. Address c. Telephone number d. Type of business e. Special skills snd training f. Personal investment awareness TOO LATE TO CLASSIFY E X P E R IE N C E D L EG A L SECRETARY For statewide legal aid pew gram; competitive salary; exeeOeat experience to Oregon Legal Services, 2328 N.W . Ever-, * t t , Portland, Oregea 97210
