What does a single Black-owned business mean to the community?
The ripple effects of successful Black businesses go far beyond their contributions to the local economy. First of all, they create jobs, help Black families pass on their wealth, and send their kids to college.
Terrence Carter, vice president of economic and business development for the Knoxville Area Urban League, said they are the “lifeblood and lifeblood” of the local black community.
They benefit the entire economy. Black-owned businesses contribute about $40 million in annual wages and $90 million in annual revenue to Knox County, according to the latest U.S. Census data.
Most are small businesses close to people and problems on the ground, and Carter encourages larger companies to partner for mutual benefit.
“I don't think people appreciate enough how much they contribute to the tax base,” Carter told Knox News. “All small businesses in minority communities should be helped to scale up, because that's good for the entire economy, not just big businesses but also small minority businesses.”
Still, there are far fewer Black-owned businesses than there should be.
If the number of black-owned businesses with paid employees were proportional to the county's black population, the number would be about 800. In fact, there are only about 93 companies in Knox County.
It’s important to support Black-owned businesses. That's why Knox News presents his third “Black in Business” project, celebrating just a few of these thriving companies. These businesses are creating opportunities in areas with high poverty rates for Black residents and closing the racial wealth gap.
Check out the profiles and photos of this year's Black Businesses.
“It also uplifts other people in the community because you're getting them to work for you,” said Pamela Cossum, who is leading the city of Knoxville's efforts to contract with more diverse companies. “It spreads in so many different ways.” . “It's a trickle-down effect on the economy, on their lives, on their neighborhoods and communities.”
With a disproportionately low number of Black-owned businesses, several organizations and entrepreneurs are pushing data in a different direction to lift Black communities and local economies.
Inequality led to the Black Entrepreneurship Program
In March 2021, the Knoxville Entrepreneurship Center launched 100 Knoxville, a program that provides mentorship to five Black business owners in a five-week intensive course. In partnership with Bank of America, each company will receive his $5,000.
The program was inspired by Memphis' 800 Initiative. Both are named after the estimated number of Black-owned businesses in each city, and each has revenue growth goals. The 100 Knoxville program aims to increase the revenue of Black businesses by $10 million over his five years.
Jim Biggs, executive director of the Knoxville Center for Entrepreneurship, said the center wanted to start the program after studying data on local business disparities. The average annual revenue for all white-owned businesses in Knoxville was $574,000, while the average annual revenue for all black-owned businesses was about $65,000, Biggs said.
Biggs said the data comes from the 2013 U.S. Census, which showed that black-owned businesses had lower profits than all other racial groups.
Although the center works with all types of entrepreneurs, we saw a unique opportunity for Black-owned businesses.
“The wealth gap was driven by the fact that there weren't enough black-owned businesses and they struggled to find the same customer base and have the same employee opportunities as other businesses,” Biggs said. he said. “Ultimately, we want Black entrepreneurs to lead the entrepreneurial community and inspire others to follow in their footsteps.”
After eight cohorts, 100Knoxville has 38 graduates and has seen an average revenue increase of 21.5%, including recent graduates. According to the program's 2023 annual report, graduates received $190,000 in public and private investments.
Jackie Holloway, executive director of the nonprofit Canvas Can Do Miracles, is one of the 100 Knoxville alumni. Her nonprofit provides free art classes to at-risk youth and adults and promotes Knoxville's Black artists through art exhibitions and contests.
The 100Knoxville program gave her access to networking opportunities that helped her nonprofit grow. Holloway's training was in business, and she said she didn't have all the skills needed to run a nonprofit. Canvas Can Do Miracles was able to hire a grant writer through 100Knoxville.
“We made the leap from grassroots to a viable nonprofit,” Holloway said. “We are excited about the changes we are seeing. It will be a lot of work at first, but it will pay off. I am confident of that.”
Just like in the business world, there are disparities in the local art world. When Holloway researched how many black artists were showing work in local galleries and competitions, he said their underrepresentation was “stunning.” She hopes that changes.
“I find that Black artists in Knoxville are almost obsolete, especially in gallery exhibitions and installations,” Holloway said. “We're introducing the whole community to Black artists. I think in five years, Knoxville will be an art city, a Black art city. You know in the South, if you come to Knoxville, you're going to have a high-quality Black artist.” You can see the art.”
Knoxville Area Urban League opens doors to Black-owned businesses
Many entrepreneurs struggle to obtain small business loans that could get their companies off the ground.
The Knoxville Area Urban League, an affiliate of the National Urban League, offers loans ranging from $5,000 to $250,000 to minority businesses, said the organization's vice president of economic and business development. Carter said.
This is not the only program providing loans to minority small businesses. Pathway Lending has partnered with the Knoxville Chamber of Commerce to create a $6 million 2023 865 Opportunity Fund loan program. The fund was created to provide small businesses in the 865 area code, particularly women- and minority-owned businesses, access to loans ranging from $5,000 to $50,000. .
But access to capital isn't everything, or even the most significant challenge facing Black-owned businesses, Carter said. Without a clear business plan, capital can be more of a curse than a blessing.
“We have the capital, we have the financing, we just need people to be ready and ready and have their financials and business plans in a place where they can actually lend,” Carter said. ” he said.
The Knoxville Area Urban League offers two programs for entrepreneurs at various stages of their business. The 10-week CO.STARTERS course helps startups get on the right track early, while the 7-month intensive NextLevel program helps established businesses take a big step forward.
Interise, the national nonprofit that creates NextLevel's award-winning curriculum, found that 76% of companies participating in the program nationwide increased or maintained revenue. Companies that increased their revenue increased by an average of 92% and created 390 jobs.
In Knoxville, NextLevel graduates see a significant increase in revenue and typically hire three or four additional employees after graduation. They have also networked with successful Black business owners and increased their social capital.
“We need to be able to see businesses of color succeeding, especially with products and services that are needed in our communities,” Carter said. “Sometimes people take it for granted, but it's so important to the overall economy.”
Ronisha Beljour, president and CEO of KCS Janitorial & Maintenance Company, graduated from both programs. She credits the program for the company's continued growth during the pandemic.
KCS stands for “Knoxville Cleaning Services,” and although it contracts out of state, it customizes cleaning services for customers such as dental offices and post-construction sites.
Beljour was mentored by Mark Isom, president and CEO of Premiere Building Maintenance Corporation. She herself is a mentor to aspiring Black entrepreneurs in Knoxville.
“The more we see people who look like us and from our own communities doing business and making money, the more we have hope and know that we can do it too,” Verjour said. Ta.
City of Knoxville purchases from minority businesses
The City of Knoxville's Purchasing Department awards about half of its contracts for everything from paper and pens to fire trucks to small businesses, racial minorities, women, service-disabled veterans and the state of Tennessee. We seek to source from a diverse range of companies, which we define as military-owned businesses. Entrepreneurs with disabilities.
Last fiscal year, about 38% of the city's $130 million purchasing budget went toward contracts with diversity companies, purchasing agent Penny Owens told Knox News. She said this number was lower than usual due to the ongoing effects of the pandemic, but working with local small businesses was a priority.
“Promoting trade with these companies is very important to us because it not only helps our communities and economy, but also helps create jobs,” Owens said. Told. “That's why (Knoxville Mayor India Kincannon) thinks this is such an important issue.”
The city's Small Business and Diversity Support Division is looking for minority-owned businesses to contract with the city. Pamela Cossam manages the department and attends many community events to meet with businesses and prepare them to accept government contracts.
If your business isn't ready, she can help you take the steps to get there. Her favorite community event is the monthly East Knoxville Business and Professional Association meeting, which informs Black-owned businesses about the jobs the city needs.
“We don't want people to be afraid because we're the government,” Cossam said. “We want to help them learn the process so they don’t feel like they’re trying to learn how to run a business on their own.”
More information about Black-owned businesses in Knoxville can be found in the Black Business Directory at knoxvilleblackbusiness.com. Damon Rawls, a candidate for the District 1 seat on the Knox County Commission, created the directory to connect Knoxville residents with Black entrepreneurs in the city.
Daniel Dassault is a growth and development reporter focused on technology and energy. Phone number 423-637-0878. Email daniel.dassow@knoxnews.com.
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