Why then do we continue to verbally uphold poor standards and stereotypes about black people in business and scratch our heads or get upset when, in too many cases, they turn out to be true?

Our statements, jokes and expectations that a black-owned business will be “bootleg,” poorly run, always out of a product it is supposed to have, or unsafe — or that a black businessperson will be late, unprepared or expecting arbitrary discounts — are completely unacceptable.  If you believe the precepts that “thoughts are things” and “words have power” then you know every time we speak this nonsense and dap each other up or affirm the statement with that “girl, I know what you mean” look, we are dooming ourselves to staying trapped on the bottom rung of business success.

When I say it is nonsense, I don’t mean it never happens.  I mean that it happens at businesses run by all types of people and I mean that for whatever truth there is to those statements we ought to be focused on using our words, energy and finances in the most powerful way we can: By speaking about, patronizing and operating black-owned businesses that are models of excellence — and demanding that those who are not there yet rise to the standard, starting with self.

There are root causes that create these problems.  Let’s solve them:

“Bootleg” and poorly run: Usually a business facing these problems is underfunded and not well managed.  To solve this problem, find the capital your business needs in order to run properly or change your business model or scale back and operate only the part of the business that you can operate well at all times based on the capital you have or the cash flow you can generate from sales.  Never give arbitrary discounts to anyone—including family or friends.  It is the responsibility of business owners to break this culture of expecting a hook up.  You are running a business, your prices are set to recoup costs and provide profit.  Arbitrary discounts, which are discounts you haven’t analyzed and prepared the business to make up for, will zap your bottom line.  If your business is not well managed your systems and/or staff need to be reviewed and replaced or upgraded.  If you don’t know how to make these changes get help immediately to figure it out.  The U.S. Small Business Administration and SCORE offer free or low-cost help to entrepreneurs.  Take advantage of it; taxpayer dollars are covering the costs so use these services so much that they know you on a first name basis.

Always out of a product you are supposed to have or unable to provide a service you supposedly offer: If you are facing this problem it may mean that you have a financing problem, pricing problem or an inventory management problem.
If you order products from a supplier and retail them or use them to make a product that you retail, ask your supplier about financing or terms.  For example, UPS has a special division of its company (UPS Capital) that consults with small businesses and provides terms to help them get beyond supply and distribution problems.  That’s not their core business but it makes sense for them to use their expertise to help the businesses that use their shipping services. The more those businesses prosper the longer they will be UPS customers.  List all the businesses you buy from and negotiate or research services they can offer that will help you make your business systematic, sound and successful.  If your business is service based and you’re always stretched or unable to provide the service upon request then you may have a pricing problem. Increase your prices and get more help. Don’t perpetuate a reputation for poor business practices when the problem is simply that you are trying to do too much for too little money.

Unsafe: If your business is located in an area that doesn’t have the greatest reputation for safety you ought to band together with other business owners in the area and find out how much you collectively pay in city and state taxes. Start a business association (which you can easily do simply by naming the group) and appoint a spokesperson.  Send letters to the city council and state elected officials and let them know that you are financially powerful bloc because money talks.  Let them know you need more lighting in your area, potholes repaired, roads paved and painted, trash cans on corners, and whatever else you and the other business owners believe will visually demonstrate concern and safety.

Also, make your business an organized, clean and welcoming environment and encourage the other business owners to do the same. An old building or neighborhood can still be clean, well kept and safe.

Late and unprepared: To be on time (which is to be early) and prepared you must create new habits.  Usually people who are late all the time and unprepared are trying to do too much.  Learn the word “no” and realize that every “yes” means “no” to something else.  When you say, “yes,” I’ll be at that meeting that means 30 minutes for the commute and 60 minutes for the meeting, i.e. an hour and a half less that you have to work on and prepare for something else.  Can you afford to do that?  Start managing your time like it is money because it is actually far more precious: Time is our only resource we can never replace.  Don’t waste it.

Regardless of the circumstances, there is no reason to run a sub-par business long-term.  Those operating in excellence should continue to do so and pass along wisdom to others.  For those who need help, it’s time to get honest, get tough and change the conversation because that’s the only way to change the reputation.

Felicia Joy is a nationally recognized entrepreneur who created $50 million in value for the various organizations and companies she served in corporate America before launching her business enterprise. She is the author of Hybrid Entrepreneurship: How the Middle Class Can Beat the Slow Economy, Earn Extra Income and Reclaim the American Dream and a regular contributor on CNN. Follow her @feliciajoy.

Considering the success of enterprises such as Oprah Winfrey’s Harpo Productions or Don Peebles’ Peebles Corp., having to defend the quality of black companies might seem passé. But the idea that “black-owned” equals subpar is a notion that persists among many.

“I want to dispel the myth that by supporting black-owned businesses you’re settling for less quality,” says Thomas, a 37-year-old freelance journalist. Thomas notes that African Americans tend to have higher expectations of black-owned businesses than they do nonblack establishments. They are also less forgiving.

“Someone can go to a place and have a bad experience and make a sweeping statement like, ‘That’s why I don’t support black businesses.’ I think that’s the wrong attitude.” Instead, she suggests responding to poor service by cordially asking to speak with the management and making a decision based on the outcome.

“It wouldn’t be so disturbing if we were conservative, modest consumers. But looking at the statistics, we are the largest consumers, so not spending money with African American vendors and business owners is disturbing,” Thomas says. According to a report released by the Selig Center for Economic Growth, black buying power is on track to reach $1.2 trillion in 2015. The desire to combat such thinking was one reason Thomas and two of her friends established a discussion group primarily for African American professionals, called TalkBLACK. The organization has made supporting black-owned business an integral part of its mission.

TalkBLACK hosts two-hour meetings on the first Saturday of each month at black-owned venues, and encourages attendees to purchase at least one item from the menu. Thomas got the idea to form the nonprofit group while engrossed in a lively discussion with her two close friends. Although they already actively participated in a few organizations, all three longed for a social setting for intellectuals outside of Atlanta’s club scene. The trio knew of others who shared their appetite for passionate discourse about the African American community and soon put their plan into action.

“I didn’t know what to expect,” says Godfrey Fuji Noe, a 38-year-old social and behavioral scientist who, along with Thomas and journalist Bryan Toussaint, co-founded TalkBLACK in December 2003. “I always knew it had—and still has—tons of potential.” The three held informal meetings at which they discussed the organization’s potential format, says Noe. Next, they drove around looking for black-owned venues at which they could host gatherings and further explore the direction the organization should take. “The future is pregnant with possibility,” says Noe. “I see the potential for a radio or TV talk show and perhaps other projects.”

As TalkBLACK’s moderator, Thomas presides over meetings at which invited panelists and attendees express opinions on a range of topics such as volunteerism, economic empowerment, healthcare, the music industry, fashion, and relationships. The meetings are free and streamed live on the group’s website (www.talkblack.net). Beyond the group’s stated goal of engaging in interactive dialogue, Thomas sees the meeting format as an opportunity to support black-owned businesses and give them wider exposure.

“It didn’t make sense to talk about economic empowerment but not give back to black businesses. That’s why we decided to hold our gatherings at black-owned venues,” Thomas explains. TalkBLACK has similarly put thought into action regarding educational empowerment by volunteering and developing support relationships at two Knowledge is Power Program charter schools in Atlanta.

With the exception of a six-month hiatus the group took to reorganize in 2007, TalkBLACK has met consistently since its first meeting at the legendary Paschal’s Restaurant, where Martin Luther King Jr. and other civil rights activists met. TalkBlack has grown from nine attendees at its first gathering to averaging 40 a month. February’s “Love and Relationships” topic nearly filled the meeting space to capacity with 80 attendees.

“For seven years young African American professionals have driven from all over metro Atlanta to have an intellectual discussion, but this image isn’t promoted in the media,” Thomas says. “I’ve had people come from Alabama. We had one woman come from Ohio just to be a panelist.” Thomas says that TalkBlack is open to starting affiliate chapters in other cities.

The number of black-owned businesses in the U.S. nearly doubled from 64,000 to roughly 127,000 between 2002 and 2007, according to the Census Bureau, and many African Americans consider Atlanta to be a black metropolis. Even so, finding black-owned venues where the group can meet isn’t easy. TalkBLACK has a list of such venues where it currently hosts its meetings, and it’s in the process of compiling a directory of Atlanta-area black-owned businesses.  In the meantime, for most businesses, the only way to really know if they’re black-owned is by word of mouth.

With the venues the group does utilize, the mutual support can have a real impact; TalkBLACK representatives guarantee that 90% of its participants will patronize the business. Cassandra Ingram, owner of 5-year-old Urban Grind Coffeehouse, knows firsthand how beneficial hosting a TalkBLACK meeting can be for business. Ingram’s coffeehouse has hosted seven TalkBLACK events over the years and sees the experience as a win-win. She has experienced a 15-20% increase in sales during the meetings.

“We’re getting additional exposure to people who may not have ever been here before,” says Ingram. “Some people continue to visit, bring a friend, or host an event at Urban Grind after attending a TalkBLACK event.”

What prompted you to write this book?
I saw what the lack of financial literacy can cause, just by the recession of 2007. Every dip in the economy can be solved by fiscal responsibility. From the consumer level to the corporate level and even the government level, we can learn that we should manage our resources more responsibility.

What does it mean to live in the village?
Living in the village is a play on the African proverb “It takes a village to raise a child.” But the book takes it a few steps further. If it takes a village to raise a child, then the strength of the children depends on the strength of the village. The village is comprised of individual members and households all doing what they can to contribute to the greater good of society, and all doing what they can to make sure they can manage their own resources. In 2007, we saw what happened if you were fiscally irresponsible and purchased a home with a 500 FICO score and no budget and had no money in the bank, but you were able to get an adjustable-rate or interest-only mortgage.

Essentially, when you go through foreclosure, your neighbors suffer because their property values decline as well. And now you have many individuals under water. If we’re going to look at the village as a whole, if we’re going to create stronger children and stronger villages, it has to start from the individual level. But it can’t stop there–we have to create stronger households in order to create stronger communities.

What are some obstacles to financial freedom?
The first obstacle is the mind. We fail to realize the mental aspect of wealth.  Lack of faith and hope is another. We spend so much time looking at the news and hearing about how dreary it is out there. All these things are catapulted into our psyche so much that many individuals have given up. So we have to get over that first hurdle of understanding the importance of having faith and a strong mentality. Faith is belief that you can do well and that tomorrow is going to be a better day for you. And the other half of that is working to make sure that belief comes to fruition. It’s about your mindset. If you think you’re going be broke or you think you won’t be able to buy that first home, you’ll never be able to do it. We have to get our mindset right.

How would you define economic empowerment?
When we talk about true economic empowerment, it means all your needs are filled. You’re not suffering from lack.  You’re thriving and you’re able to put savings away and all your needs are fulfilled. It’s also defined from a holistic level: Are you healthy? Do you have a solid mindset? Are you confident? Are you spiritually grounded?  True economic empowerment from a financial perspective means that you have a clear, defined goal toward true financial independence. That means you have the option of  never working again. When you’re financially independent, you can say, ‘I don’t have to earn another dollar and I’m OK.’

Read more about great books on money and finances.

• Black Faces in White Places
• 5 personal finance books for couples
• The Art of Business Seduction

Sheiresa Ngo is the consumer affairs editor at Black Enterprise.

Maestro Jeri Lynn Johnson blends musical genius with business savvy.

This week on The Urban Business Roundtable, UBR Contributor Angelique Westerfield speaks with arts entrepreneur Maestro Jeri Lynn Johnson, founder and conductor of the Black Pearl Chamber Orchestra, Philadelphia’s first and only multiethnic professional orchestra. One of the nation’s leading female conductors, Johnson was the first African American woman to win an international conducting prize and was also awarded the Leeway Foundation Transformation Award for her ability to create social change through artistic and cultural work.

Johnson joins Westerfield to explain how she combined her gift of music with her business savvy to create a cultural treasure that is both artistically viable and financially solvent in Philadelphia. Founded in 2008, the orchestra’s mission is to take the audience beyond spectatorship to participation in the artistic experience.  The BPCO is the first world-class professional orchestra to reflect the cultural diversity of the Delaware Valley region. Through creative use of technology, educational programs and collaborative partnerships with education and cultural institutions in Philadelphia, the BPCO is attracting newcomers and enchanting classical music aficionados alike.

Also on this week’s edition of The Urban Business Roundtable, our Executive Producer TaQuoya Kennedy speaks with Dr. Claude Anderson, the president of PowerNomics Corporation of America and author of Powernomics: The National Plan to Empower Black America. Anderson has been studying and working toward black economic empowerment for decades. He speaks with Kennedy about what African Americans must do to become more competitive in business.

In addition, every week on UBR, you’ll get motivation and inspiration from author and entrepreneurial icon Farrah Gray, a weekly wrap-up of business news from USA Today Business Correspondent Charisse Jones, our Patient Investor Report from Ariel Investments and key economic intelligence for small business owners from our UBR Economists Derrick Collins and Rasheed Carter.

And finally, I’ll share some of the basics of establishing something every entrepreneur and small business owner needs: a social media strategy. For more information, check out the feature “What’s Your Social Media Strategy?” in the November 2010 and December 2010 issues of Black Enterprise. You can also find more articles on how to use social media to boost your business at BlackEnterprise.com.

If you have a question you want answered or a topic you want addressed on The Urban Business Roundtable, send me an e-mail at edmonda@blackenterprise.com or to me at Twitter or Facebook.

Alfred Edmond Jr.

Alfred Edmond Jr. is the editor-in-chief of BlackEnterprise.com and the host of the Urban Business Roundtable, a weekly radio show, sponsored by Ariel Investments, airing CST Wednesdays at 8:30 a.m., Thursdays at 6:30 p.m. and Saturdays at 9:30 a.m. on WVON-AM 1690, the Talk of Chicago. You can also listen live online at WVON.com. Check back each Wednesday for The UBR Morning Post, which features additional resources, advice and information from and about the topics, entrepreneurs and experts featured on the show.

Felicia Joy of Ms. CEO Inc. has a ready answer for those seeking her firm's services for little or no pay.

One of the challenges facing many black small business owners, and especially new and less experienced entrepreneurs, is tradition of the hookup: the expectation that black entrepreneurs will give away their products and services for free—or “hook a brother/sista/cousin/etc. up”—because the patron is a friend or relative, and often just because both the business owner and the would-be patron are black. For years, I’ve railed against those who constantly expect to be hooked up, telling them that they are doing a disservice to black entrepreneurs, creating a drag on the growth and profitability of small black-owned businesses, and putting a damper on the economic vitality of black communities. (For more, check out my post, “Why I Hate The Hook-Up.”) On this week’s edition of The Urban Business Roundtable, the radio show I host for WVON-AM Chicago, I stressed that getting consumers to stop looking for a hook-up is only part of the solution; business owners need stop handing them out.

Felicia Joy, CEO of Ms. CEO Inc. and Joy Group International and host of The Ms. CEO Show, a weekly talk radio program, has dealt with more than her share of would-be clients seeking a hookup.

“People (especially potential clients for entrepreneurship coaching) often ask me to work for very little pay, or they try asking me questions to get valuable information and insights without paying for them,” says Joy. “I used to try to work with people, thinking that it was a money issue, but I have come to understand that more often it’s a mentality issue.

“My response now is, ‘I understand where you are coming from but my rate is firmly X per hour. When do you think you’ll have that amount?’,” Joy adds. “If the person is unwilling to commit to a time frame,  I know they’re not serious and I tell them to call me when they’re ready; then I move on and forget it. This has also challenged me to begin developing more products (books and CDs) that I can sell at a $25 or less price point—and reach more people—rather than shortchanging and burning out myself.”

How often do people expect you, as a business owner, to hook them up? Is it a rare event, a common but minor annoyance, or a real drag on the growth and profit-potential of your business? Take our poll and share your experience on this subject, and as well as your take on the issue and how you deal with it.

CLICK HERE TO TAKE OUR POLL

Harvard Professor Charles Ogletree Jr., Ph.D, made an alarming observation in 2004.

I’m talking about the scrub described in the TLC song lyrics: “Sitting on the passenger side of his best friend’s ride, tryin’ to holla at me.” Don’t act like you don’t know who I’m talking about. The scrub they describe is living in his momma’s basement, takes his dates out on the bus or his bike and never has any money. The larger question is, is this term and description applicable to all black folks?

Before you ladies start tripping, I am not just referring to black men. In 2004, while speaking at a Dr. Martin Luther King Holiday event, Harvard Professor Dr. Charles Ogletree Jr. said that “(Blacks held) 1% of the nations wealth in 1865, and 1% now”. In other words, we hold the same percentage of wealth now that we held at the conclusion of slavery! Even if we assume that Ogletree’s stats are a bit off, I would be willing to bet that he isn’t far off. Black people are sitting in the passenger side of American wealth.

You’re thinking: How is this possible? We have improved exponentially. We have Oprah, Bob Johnson, Shaq, and Cosby; how is this wealth disparity possible? Black folks are arguably the descendants of the strongest people to walk the earth, a people who survived that free Caribbean cruise from the west coast of Africa. Black Folks in America have huge attributes like forgiveness, love, innovation, creativity, athleticism, and the list goes on. Black folks have a lot of things—except wealth.

In my financial advisory practice (www.PolarisAdvice.com), I get a front row seat to the insanity. I did an interview for another publication, and the interviewer was asking me why, based on a study, African American’s savings rate was so much lower than the general population. My answer included the disparity in wealth as a major reason, with a few examples. The fact that we generally earn less, require school loans more often, and rarely inherit wealth are huge factors. I did not share the participation in insane behavior with this publication since it is a “majority” publication. I will, however, add insanity as a major factor as I’m addressing the Black Enterprise audience. If you don’t know the definition of insanity, stop reading and ask someone right now. We need to collectively stop acting in an insane manner.

The solution to this insanity is way more than I can discuss here—you’ll have to wait for my book. I will, however, share a few easy ideas.

1. Shop with black-owned businesses for 12 months. It isn’t easy. I did it, and it was the most eye opening business experience of my life. (Also, see the Empowerment Experiment.)
2. Buy as much life insurance as you can afford, and work to end the cycle of not passing wealth on. Make the next millionaires of the next generation.
3. Save money, even if it hurts. Put it in a freezer bag, and throw it in the back part of the freezer where it ices over so that you have to chip it out to get it.

Black folks will stop being scrubs when we realize that wealthy people are wealthy because the have a lot of money, not because they spend a lot of money. A big part of keeping the money is by spending it among ourselves.

Eric D. Grant is a financial advisor with Polaris Wealth Management.  Eric is also an Investment Adviser Representative with ING Financial Partners, member SIPC.  Polaris Wealth Management is not a subsidiary of nor controlled by ING Financial Partners.

The Andersons in front of the now-defunct Farmer’s Best Market.

When you walk into a store you’re often preoccupied with whatever product you want to buy. Most times, the last person on your mind is the store owner. But for the past year, Maggie and John Anderson were not only concerned with the store owner, but with whether or not he or she was of African descent.

Their project, the Empowerment Experiment –formerly the Ebony Experiment — grew from their desire to spread awareness about black businesses that provided high quality, economical merchandise and to dispel the myth held in black communities that black products and services are inferior to those sold by other ethnicities.

You see, the Andersons made a public choice to spend all of their money with black business owners and professionals or black manufactured products throughout the entire year of 2009. They estimate that they spent about 70% of their income or about $70,000 on black businesses last year. They got the idea from similar projects like the “No Impact” family, who lived a year without electricity to reduce their carbon footprint.

They also wanted to draw a parallel between the lack of black businesses and the high rates of unemployment, recidivism, and chronic illness in black communities, says John Anderson, 38, a financial consultant with AXA Advisors, and president of In Sight Financial Management, his own consultancy firm.

Though the experiment is over, their cause is unfinished. The goal of EE was never to connect to the mainstream, but to encourage black people to support black-owned businesses, says Maggie, also 38 and a stay-at-home mother of two with a law degree and an MBA from the University of Chicago.

They plan to re-launch their Web site to include a directory of black businesses nationwide, a ticker that will track the money spent at black companies, and allow users to rate the products and services listed on their site. Researchers at Northwestern University’s Kellogg Graduate School of Management will release a study on the experiment this spring. Finally, by June the Andersons hope to publish a book chronicling their experience and the findings of the study.

Here, the Andersons discuss the successes that kept them empowered, the struggles that challenged them, and why they won’t be continuing the experiment.

BlackEnterprise.com: Do you consider the experiment successful?

Maggie Anderson: We do feel that we made history. Nothing like this has ever been done before and we actually did it. I think we were very successful in finding those diamond in the rough businesses like my alarm company, Foscett’s Communications & Alarm Co, and some of the products I encountered that are sold in mass retailers, like Reggio’s Pizza and my new toothpaste, Sudantha, an herbal toothpaste produced by Link Natural Products.

If spreading awareness was a measure of success, I think we were widely successful. My daughters’ pediatrician and her book club have all decided they are going to commit to spend 75% of their income with black businesses because of the Empowerment Experiment. I have at least 100 other instances like that of folks who are going to totally change their lives just because of our story.

What was the biggest disappointment?

John Anderson: One of the biggest disappointments…[was] the failure of one of the businesses that we supported quite a bit — our grocery store, Farmer’s Best Market. There was no reason for it to fail. That was really disheartening. We really took that failure to bed with us at night.

Why do you think the store closed?

Maggie: Every time I was in that store—and I was in that store all the time–it was empty. It was a big, full-scale grocery store. There was nothing wrong with it. All those people who came to the Empowerment Experiment meetings and who called in to the radio shows didn’t take the extra step to actually try and go into Farmer’s Best and support the owner.

Five blocks up the street there was a Greek-owned food and liquor store. It was dirty, the produce was rotten, and the meat smelled–the kind of place that wouldn’t survive a day in [a white community]. The parking lot was packed with black people. I really do believe that we suffer badly from this psychosis that our stuff is not as good as everyone else’s.

What is your response to the critics who say black businesses aren’t thriving because they have bad business principles and race has nothing to do with it?

John: We saw a lot of quality businesses that were doing the right things that just weren’t getting the level of support that we would have liked seen. If you analyze the failures of businesses across all ethnic groups that would be one factor, but it stands to reason why in our community the failure rates are significantly higher and average receipts are significantly lower. All of that can not be ascribed to poor service.

Do you plan to continue your experiment in 2010?

Maggie: It is painful not doing the experiment anymore. After we lost Farmer’s Best Market we did guerrilla-style grocery shopping. We’ve been living on convenience store and gas station food since August. As much as we want to [continue] we can’t keep living like that on an extended basis, especially with our daughters [Cara, 4, and Cori, 3]. But at least 50% of our spending will be with black businesses this year.

John: The bottom line is our lives are changed forever. The businesses that we supported throughout the year that are quality businesses in line with our mission, we want to see succeed and grow. We will continue to support them even if it is not geographically desirable to do so.

Note: Karriem Beyah, the former owner of Farmer’s Best Market plans to re-launch the store at a new Chicago location in February.

"How will my business make money if no one wants to pay?"

Stop me if you’ve heard this one. Richard, a black comedian calls his white friend: “Hey, Chad. Just wanted to let you know: I’ll be in town next week to do a show. Hope you can make it.”

Chad: “Really? That’s great! What night is it? I’ll call all of my friends and we’ll pack the house! It’ll be a blast!”

“Thanks, Chad!,” says Richard. “It’s on Thursday night. I’ll see you then!”

Richard hangs up, excited about the prospect of a big night at the comedy club, which means more gigs. He then he calls his boy, Lamont. (What? You know he’s black. How many white, Asian or Latino guys named Lamont do you know? Try to keep up, okay? Anyway…)

Richard: “Monty-Mont! Whassup? It’s ya boy, Richy-Rich! Just hollerin’ atcha to let you know that I got a gig in town next Thursday. You coming, right?”

Lamont: “Hell, yes, I’m coming! You funny as a mug! Shoot, I’ll bring my girl, and tell her to bring her girls, and I’ll get Antonio and Big Rob and Lisa to come and get the word out to their peeps, too!”

“Cool!,” says Richard. He holds his breath. He knows it’s coming.

“You gonna hook us all up, right?,” says Lamont.

One of the biggest drags on black entrepreneurial growth and profitability is the “hookup”: black people expecting other black people to provide them with free goods and services just because they’re black. We need to stop it. Today. NOW.

No, she can’t hook you up with a few press releases and some public relations for your event.

No, he can’t hook you up with a few signed copies of his book.

No, he can’t hook you up with a quick shape-up so you can look fly at the club tonight.

No, she can’t hook you and your momma and aunties up with free tickets to the fashion show.

No, she can’t hook up a business plan for you real quick.

No, she can’t deliver the dinner keynote without an honorarium, in return for two tickets at the head table for food she won’t get to eat. Because she’ll be speaking during the dinner.

No, they can’t wash your car, pull your teeth, do your hair, fix your computer, edit your manuscript, paint your house, build your Website, etc. for free! Discount? Maybe. Complimentary services for referring new—paying—customers? Okay. An occasional freebie for long-time, loyal customers who always pay? Sure. Barter my goods or services for yours? We might be able to work something out. But, FREE? NO!

Hello? The point of being in business is to make money! How can entrepreneurs, and black business owners in particular, make money, if they’re expected to give their products and services—which costs them money to create, develop, market and deliver—away for free? If you don’t spend money with them, they can’t spend their money with you. If you won’t pay for your haircut, your barber can’t pay to eat at your restaurant. If Leslie the auto dealer won’t pay a competitive rate for wedding planning, Lisa the wedding planner can’t afford to buy a car from Leslie. Money has to circulate in order for economic empowerment to happen and for black entrepreneurs to have a chance to compete and thrive. You don’t support black entrepreneurs by showing up for the hook-up. You support black business by paying up.

When I find a black entrepreneur or professional who provides goods and services I like, I pay for those goods and services—period. I know that there are costs associated with providing a service and making a product, a cost they can only recoup by selling at a profit. I don’t want them to hook me up with free stuff. I want to hook them up with my spending, because then they can really hook me up, by creating jobs, growing the local tax base, supporting community organizations, doing business with other black entrepreneurs and professionals—or just having enough money and a predisposition to reciprocate, to buy goods and services (like subscriptions to Black Enterprise) from me and mine. I want black enterpreneurs to make money. I want them to succeed. I want them to get more than rich. I want to see as many wealthy black entrepreneurs, families and communities as possible. So if I like what they’re selling, I’m more than happy—I’m thrilled—to pay for it, and to tell all of my family, friends and associates how great they are.

Do you really want to support black entrepreneurs and black professionals? Stop hitting them up for freebies. If you believe in their products and services, pay for them, as you would for the products and services of any other business. If what they’re selling doesn’t merit that, why are you patronizing them in the first place? Do you really think you’re doing them—or yourself—a favor?

Maggie Anderson

The Empowerment Experiment has progressed from the website and the media to the streets and suites, from the computer and TV screens to a growing following in the churches, conferences, wine-tastings, networking receptions, dinner parties, and university halls.  Now that we have taken this turn—now that we are talking to more and more of you directly, learning and sharing with you face-to-face—we are really starting to feel, for the first time ever, what a movement feels like.  Strangers are hugging and crying, some remembering the ’50s and ’60s, some hurting about the present-day, and others hopeful about future.

We started EE because we knew there are so many more out there like us.  Folks who care and want to do more.  We felt like our generation has fallen short of our duty, like we’ve recklessly, lazily dismissed our purpose, our place in the ongoing battle for economic opportunity and social justice.  We are corrupting the legacy of our ancestors and the dynamism of our heritage.  EE is a chance to make up for that.  Through EE, we want to do something unprecedented and inspire something outdated.  We want to inspire that now near obsolete feeling of empowerment, hope, and solidarity that we had in the Civil Rights Movement.

But how do you do that?  Are we doing enough?  And are we doing it right?

Some of you know that after college, I began my career as a speechwriter.  And as a progressive, I often use quotes from famous civil rights leaders like President Kennedy, W.E.B. DuBois, and Dr. King.

So as I write these speeches about making a movement, I try to find the good ole Rev. Dr. King quotes to help me poetically and poignantly communicate that point.  But maybe a quote isn’t good enough this time.  I mean, if EE is the beginning of an economic empowerment revolution… If we are going to pull this off… If we are to truly make a difference… If more of my people will start thinking about how important it is for us to support one another… If Black people are going to gain control over their own fate and start proving, everyday, our magnificence to the world, instead of just reminiscing about it every once in a while… If we are going to transition into a movement manifested by actual results… then a Dr. King quote is not enough to make it all happen.  His very spirit needs to consume me, my husband John and EE.

So I talk to him everyday.  Dr. King tells me that even though he and Rosa Parks and all the other heroes did so much, I don’t have the luxury of giving up, or giving in.   I no longer have the right to live the empty and easy life.  I can not choose between Living his Dream and Fighting for his Dream anymore.

King says EE needs to be much more than a call for increased awareness and pride.  What we need now is something that goes beyond a call for more optimism, consciousness, and hope.

Dr. King says that patience and optimism alone will not get us to The Promised Land.  He taught us to temper that patience with a little passion. Back those prayers up with some planning. Justify that optimism with some industriousness and results.  Activate and hasten all those awesome hopes with some vigilance.

If Dr. King were here, I believe he’d want us to perfect our possibility by ensuring it and capturing it—owning it.  He’d want us to just own what’s ours.

Dr. King says to me, “We either seize it or let it slip away.”

Dr. King asks me, “When have we ever answered injustice, exploitation and despair with ‘It’s too hard.  I don’t know where to begin.  I am just one person?’ Or ‘The success of a few is good enough.’?”

And now I ask all of you:  Is this what you want?  Is this really enough? Is this the plan?  Is this what our ancestors and elders wanted for us? For this country?

Did they want us to fight for the vote, for equal rights, but then let poverty, crime and drugs, barred up businesses and boarded up homes become the new hallmarks of the black neighborhood?

Are we supposed to accept and overlook that we still have only one-tenth the transferable wealth of our white counterparts—a condition that has not changed since Reconstruction?  Should we pay no heed to the fact that our businesses, in 1980, shortly after we became fully integrated into American society, lead the pack in terms of revenue growth and success rates, but now, 20-something years later our businesses are a very distant third behind Asians and Hispanics, and our community’s economic health continues to worsen at an even more accelerated rate.

Must we close our eyes to our reality (while the rest of the world depicts it) that, according to every measure of social and economic progress—incarceration rates, unemployment rates, graduation rates, incomes, home ownership, whatever—our numbers are the highest or lowest, whichever’s worse?

Now before y’all even start, no way am I comparing myself to Dr. King or any of those legends to whom I owe everything.  But they all inspire me.  Without him and all those who struggled with him, there is no EE.  We are not them and can never be them.  However, everyday we do this—stick to our pledge, go without things we like and need, drive for miles and miles, take the flack, avoid the pain, feel the love—we do it with them in our hearts and minds.  Every day in The Empowerment Experiment we recall another time in our history when our people came together because one black woman decided to take a stand.

No, no.  I am not Rosa Parks.  And I won’t and wouldn’t insult her legacy my comparing my sacrifice to hers.  But I will certainly dishonor it, if I don’t learn from her and her sacrifice.  And we insult her—we all do—when we give up on her fight.

So I do this in her honor.  And just like her, I seek and listen to Dr. King, and hope to make him proud.

Maggie Anderson, a business consultant, and her husband, John, a financial advisor, have been buying black made-products and services for all of 2009.  They call their pledge The Empowerment Experiment (EE).  Their experiment will serve as the foundation for a landmark study on self-help economics in the Black community.  They live in Oak Park, Illinois, with their two daughters; Cori, age 2, and Cara, 4.