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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (May 5, 2021)
May 5, 2021 Page 9 Opinion articles do not necessarily represent the views of the Portland Observer. We welcome reader essays, photos and story ideas. Submit to news@portlandobserver.com. O PINION In this Crisis is an Opportunity Black-owned businesses have been hard hit d edriCk a sante -M uhaMMad With over half of American adults now at least partially vaccinated, many of us are beginning to imagine a future be- yond the pandemic. But for the many small businesses that didn’t survive, there’s no “af- ter.” Black-owned businesses have been especially hard-hit. That’s because even after three pandemic relief packages, there’s an elephant in the room that every resource, policy, and program is failing to address: the preexisting conditions of Black entrepreneurs. Despite strong entrepreneurial traditions in Black America, the pre-COVID state of Black busi- ness — and indeed of Black eco- nomics generally — was itself in need of redress. In economic crises throughout our history, African Americans are impacted first and by worst, yet they’re the last to recov- er. COVID-19 has been no excep- tion. The severity with which COVID-19 continues to ravage Black businesses has everything to do with this preexisting condition. A stronger recovery for Black business requires policymakers and resource providers to address not just the economic results of the COVID recession, but also these deeper inequalities. Here are a few of them. The business revenue pre-condi- tion: Black entrepreneurship great- ly increased between 1992 and 2012, from 3.6 percent of all firms to almost 10 percent. Yet even with Black entrepreneurship increasing almost threefold, the proportion of Black revenue decreased by half — from 1 percent to just 0.5 percent. The income inequality pre-con- dition: For the last 50 years, Black Americans have received only about 60 percent of the income of white Americans. Even tripling the share of Black-owned businesses did little to change this. This affects not just families, but entire businesses. Since most en- trepreneurs use their social circles BUSINESSGuide to begin growing their customer base, Black entrepreneurs are often For a free estimate... forced to rely on a customer base Just Call: with much less spending capital. (360) 350-7209 The wealth inequality precondi- Or tion: According to the Federal Re- serve, the median wealth for white Visit: households is $188,000, while the www.Charapo median wealth for Black house- Landscaping.com holds is just $24,000. This lack of wealth steers Black entrepreneurs into industries that require less start-up capital — such as beauty, hair care, and social and health ser- vices. But these industries also are State Farm R lower revenue businesses. Black businesses have suffered terribly during the pandemic. But there’s not much to be gained by Michael E Harper getting Black entrepreneurship Agent back to the unstable, low-revenue Providing normal that existed pre-COVID. Insurance Instead, we must push Black en- and Financial trepreneurship forward — so that it Services returns stronger after the pandem- Home Office, Bloomingon, ic and can weather whatever cri- Illinois 61710 sis comes next. We need policies, programs, and resources that target We are located at: Black entrepreneurs and boldly ad- 9713 S.W. Capitol, Portland, OR dress their pre-existing conditions. 503-221-3050 In a new paper for the National C ontinued on P age 11 Fax 503-227-8757 michael.harper.cuik@statefarm.com Theotis Cason 503-287-0855 5015 NE MLK Blvd. Portland, OR 97211 Catering Available 971-276-8674 Cut, trim, edge, power washing, hauling, leaf removal, cleanup, anything! FREE ESTIMATES FAIR PRICING
