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Topic subject80% of all Businesses fail in Five Years
Topic URLhttp://board.okayplayer.com/okp.php?az=show_topic&forum=22&topic_id=4366&mesg_id=4403
4403, 80% of all Businesses fail in Five Years
Posted by M2, Mon Jul-21-03 02:27 AM

-Not all Business in a Black Community are run by Blacks, nor do all Blacks in a community derive their income from that community in terms of a job, so it will take more than spending Black to sustain a community.

Education which leads to better job opportunities, which leads to more income is the key.

Furthermore, like K_orr said, we need to build large scale companies, local mom and pops won't constitute a large scale "Black Economic" infrastructure.

Something to consider though - the Fortune 500 is by and large controlled by and owned by WASPS, not Jews or Asians - yet both are significant economic forces as ethnic groups.

The reason, is due to the collective economic strength of their professional class, financial management habits and the fact that some (not all or a majority) of them own what is considered a "Small or Medium Sized Business" by say a Financial Analyst or Business Publication.

See, when CNBC, the Wall St. Journal, or Fortune is talking about small Business, they mean companies raking in 1-3 Million per year that's the market that Amex is going after when you see those commercials for the Small Business Card. The small business we think of is what they would call a Mom & Pop.

The companies on the Black Enterprise 100s lists - are basically small companies/small businesses in the overall context of Corporate America - those are the kinds of business we need to think about building - where we're pulling in EVERYONE's money.

Look at the lists for Asset Management Firms: http://www.blackenterprise.com/BE100s.asp?Source=Assets03

Or the ones for Investment Banks & Private Equity firms - who do you think their customers are?

These companies are leading the way in terms of building a Black Owned large-scale corporate infrastructure and these "power-economics" cats never mention them. Sad since they're the leaders of the pack AND are ideal places for Black Professionals to work.

Furthermore - moving our spending from one place to another is not going to help us, but reducing our spending by 5-15% per year and saving/investing that money instead.......

.......will create anywhere from 400 Billion to 1.3 trillion in Black wealth over the next 10 years.

All by reducing our spending as a people by 5-15% percent - doesn't even take into account the fact that as a group, the incomes of Black people are rising faster than anyone elses.

Considering that 80% of all Businesses fail - that not all of us can even start a business, as you not only need loans to start the business, but cash to support yourself while the business gets going - BUT that the 2/3 of us who are Middle Class can definitely spend 5-15% less per month by being more frugal......

.......which is the better strategy?

Even if you do start a business of your own at one point - consider this: I've got a copy of Fortune on my Desk with a white dude on it with a big ass grin. He got laid off from his job, but had more than enough money to maintain his lifestyle for a year, while he took 25k out of his savings and started a business with 12 partners (who each also put in 25k) - now he's running a rapidly growing 3 Million Dollar Company.

Save, Invest, Plan and Wait - that's the key to wealth.