Relationships Are Key to Minority Empowerment , But Are You Ready?
BY SCOTT VOWELS
PHOTO BY BILL HENRY

As executive director of the South Regions Minority Business Council (SRMBC), I am constantly faced with finding the best methods for encouraging growth in the minority business sector. It is an important issue for both the 200-plus certified Minority Business Enterprises (MBE) and our many Corporate Partners that currently comprise the SRMBC.

Before going any further, I think it is important to understand today's economic environment that has lead to making the success of minority businesses an important issue for ourselves and others.

Changing Face of America

According to the latest figures from the Census, Latinos are 13.4 percent of the American population, African Americans 12.7 percent, Asian Americans are 4.2 percent, with Native Americans comprising 1.5 percent. Melvin Gravely, author of the best-selling book, When Black and White Make Green: The Next Evolution of Race , says ". a person over the age of 70 has a 20 percent chance of being a person of color. Yet a child under the age of 10 has a 75 percent chance."

In a recent article, Partnership: The Path to Economic Empowerment, Carl Darden Sr., Vice President of U.S. Operations for UPS, quoted a study from the Milken Institute that concluded "economic growth can't be sustained without the inclusion of minority businesses and an infusion of capital into those businesses."

This conclusion is based on the premise that entrepreneurs tend to drive innovation, which leads to job growth, and that minority businesses are a key part of that equation. There is no disputing the correlation between much of the recent job growth within the minority community and the growth of minority businesses as a source of job creation.

So resolving the mismatch between minority businesses serving as a major source of job creation and their historic lack of access to capital has been called one of "the greatest economic policy challenges in this country and this century."

The solution lies in the ability of the MBE community to create viable relationships that are both relevant and mutually beneficial to all parties involved.

MBE's and the Business Game

Before even determining the necessary business relationships to develop, MBEs must truthfully assess whether they can really grow their businesses.

The first and undeniably most crucial element is an honest evaluation of the current status of your business. In this assessment period, MBEs must answer questions about the product or service they provide: Is there a market for my product or service? Who is my target audience? What are the goals for my business?

Their goals should be quantifiable, challenging yet reasonable and have a set time period associated with them. For example, "I want to be the biggest industrial supplier in the world" is a dream. "We will increase our sales by 15% in the first quarter" is a goal.

An MBE must also address his or her business' shortcomings. This is often the most difficult part of the assessment and understandably so. This business is your "baby," your livelihood, potentially even your legacy. And now internally you must tear it down and look at your business' deficiencies critically. It's time to answer the questions, "Where is my business lacking?" "What are my company's weaknesses?

The minority business owner must also assess his or her strengths and also identify those of competitors. Just as it was important to put ego aside when assessing your shortcomings, it is equally important to do the same when determining what your business brings to the table in terms of strengths. What do I do better than anybody else?

The Right Relationships

After assessing your business, you as an MBE will be armed with the necessary information to determine not only the type of relationships your business needs, but who those people should be.

In the Fall 2004 edition of the newsletter, The Entrepreneurial Thinker, Melvin Gravely said form relationships

.with whom you have influence and trust; Those relationships on which you can depend; The relationships you have with people who are both willing and able to create access for you; Those who could and would go to bat for you; The types of relationships with people who have power and influence and are willing to use both in your behalf.

The business relationships you form must be driven by your company's needs.

SRMBC in 2005

At the SRMBC, our mission is to assist corporations, educational institutions and governmental agencies in developing business opportunities with certified Minority Business Enterprises.

Major corporations have only three requirements for doing business with them: (1) the right product (2) the right price and (3) on-time delivery. There are several SRMBC - certified MBE's that are either capable right now or with a little tweaking will be able to meet Corporate America 's needs.

In 2005, you will be hearing the SRMBC name in conjunction with several other progressive, like-minded organizations throughout the State of Alabama. These relationships will allow the SRMBC to grow, evolve and better serve both our corporate partner customer base and our certified MBE community.

Scott Vowels is the Executive Director of the South Regions Minority Business Council. You can reach him at info@srmbc.org.