Why Black Communities Lack Black Businesses

Why Black Communities Lack Black Businesses

It’s common knowledge that in America the majority of black citizens do not share the same wealth or opportunities to establish prosperity as their white counterparts. In fact, black men and women in this country are paid average salaries of only 67% and 64%, respectively, of a white man working in the same position.

The racial wage gap is one of many reasons for an equally large gap in the quality of black communities, in that they have little opportunity to grow within themselves due to a lack of funds and resources.

When members of black communities are not making salaries equivalent to that of their white counterparts, it makes it practically impossible to compete with others to provide for their community. This in turn allows outside businesses owned by members of other races to infiltrate black communities, giving black business owners even less of a chance to compete.

For this reason, we find that although black women pride their beauty, they are forced to support the Asian beauty supply chains and salons instead of owning their own; or as much as blacks appreciate fine ethnic cuisines, their neighborhoods are saturated with Chinese and Korean restaurants and Indian delis, oppose to any black-owned. Furthermore, considering the black demographic’s major interest in technology, their communities are overwhelmed by mobile and computer repair shops, most of which are owned by Arabs.

Essentially, what we find is that in predominantly black neighborhoods, unlike foreigners, blacks lack the ownership of enterprises in any of the country’s leading export areas, including: industrial supplies, capital goods, foods, feeds, beverages, automotive vehicles, parts, engines, consumer goods, or banking institutions  that’s necessary to grow the black economy.

But why is this the case? Why is it that foreigners can enter the country and, what seems to be very easily, open a business in black neighborhoods, whereas blacks do not?

Well,  unlike African-Americans, foreigners have many more advantages of U.S. capitalism compared to that of their homeland. And, in addition to the federal and state tax incentives for business investment available to foreigners, political stability and minimal government regulations also provides them with an advantage.

Moreover, the U.S. encourages foreign business development by offering green cards to those who invest $500,000 to $1,000,000 into the U.S. marketplace, creating at least 10 jobs. Not to mention, many foreigners obtain a substantial credit line from their homeland bank, which they use to start American based businesses. And, successful foreign business owners are more likely to provide assistance to other members of their nationality to start endeavors.

So opportunities, and resources remain circulating within that community, giving them a major advantage over African-Americans. Also, foreigners have an advantage to start a U.S. business as a result of the significant racial disparities in the issuance of business loans to blacks.

African-Americans are known to be granted insufficient amounts and high-interest loans to start sustainable businesses or be denied altogether, whereas foreigners are awarded adequate loans, financial assistance, and low-interest rate bond financing. As a matter of fact, the U.S. Department of Commerce encourages foreign business development and opportunities in less prosperous areas by providing [foreigners] monetary aid, opposed to issuing that same assistance to blacks that would in turn allow them to offer needed products or services in their own communities. And, it is a fact that there’s preferential treatment to foreigners in federal, state, and local government assistance programs.

The National Minority Supplier Development Council, Business Consortium Fund, Inc., Minority and Women Prequalification Program,  U.S. Small Business Administration, Export-Import Bank – Working Capital Guarantee Program, Investment Project Financing and other programs or free loan society groups designed to make direct loans to minority business developers lack supporting the business endeavors of black entrepreneurs. Moreover, development credit corporations are known to avoid providing black business owners, unlike foreigners, with funds [that] may be used to purchase land, buildings, machinery or equipment or to supplement working capital.  And other state programs [which have proven not to be afforded to blacks] offer financing for plant construction, in order to encourage industrial development.

Foreigners are also able to take advantage of the various public infrastructure and environmental loans, which unfortunately aren’t readily available to blacks. And, the various state tax credits, tax refunds, or sales/use tax exemptions based on a taxpayer’s satisfaction of in-state capital investment or job creation conditions allows many foreigners to sustain and grow their businesses.

Preventing blacks from obtaining effective stimulus packages to start businesses or build infrastructure prevents them from working their way out of oppression. But what’s interesting is that although many blacks are denied lending opportunities in federal assistant programs for business development, the government willingly issue them with student, car, and (conditionally) mortgage loans–whether they can afford it or not. These loan officers are well aware of the financial state of their target audience, and they are also aware of the profits they can make from them, while simultaneously keeping them in a system of perpetrated debt. Essentially, slavery is the result of dependency, and it’s clear that the government’s oppressive policies and practices prevent the success of blacks in America, while promoting that of its foreign citizens.

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  1. A most telling and informative post that explains why there are so many foreign businesses in black communities, and how government, from the federal to the local level deliberately sabotage black peoples chances of economic success.


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