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
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