Skip to comments.How are Black-owned Businesses Doing in the Trump Economy
Posted on 07/19/2018 12:38:48 AM PDT by 2ndDivisionVet
Leo Hickman, the founder of Classy Hippie Tea Company, has been in business for seven years. Hickman said under the current economy, there is monetary value, even if you are losing because Trump just put in tax breaks for owners, the American Tax Cuts and Jobs Act, that can be written off.
The American Tax Cuts and Jobs Act passed in December and will have some benefits to small business owners. The National Federation of Independent Business says small business owners will be able to file as pass through entities, which allows owners to file and pay as an individual.
In addition, the NFIB says business owners can deduct up to 20 percent of claimable income. According to the NFIM, taxpayers will not have to file deductions to claim the deduction and may simultaneously claim this deduction and the standard deduction.
Hickman said he started his tea company after backpacking around the world. He noticed how all of the different cultures sat over tea and talked about the community, and how from there at a community level you could activate and start changing the community.
Hickman says that although the Trump economy is helping his business, the system was not built for us. But he believes that African Americans are not excluded, where [they] are included is in the programs as workers and the laborer but that you have to figure out a way to get access to get to the other side.
Once you are there Hickman says, There is going to be bigotry, racism, and hatred that will try to keep you where you are at but you have to figure out how to bubble up. Because, Hickman says, If you are going to be in this country you have to be about money.
Hickman says there are no actual losses when you can write things off. Thats why this side is set up for them, it was built for you to take a risk. But Hickman says that African Americans need to take the small risk of thirty five dollars to get your business filed, because if you dont we miss out on a couple hundred grand.
You are creating your own economy it comes down to how much effort you are going to put into educating yourself, and it opens up the world; thats were freedom lies.
Cheryl Brownlee, the CEO of CB Communications, started her small business 20 years ago. Now, under the Trump economy, Brownlee says, A lot of things [African American business owners] had the opportunity to be a part of before are changing and those opportunities are being taken away.
Brownlee started her business 20 years ago in her living room as an idea, launching CB communications officially in 2000. CB Communications has partnered with organizations like The Black Advocates for State Services, Café De California, The International Black Womens Policy Institute, and the California Black Expo.
We started out in Sacramento and now we are international, Brownlee said, working in countries like Belize, the Bahamas, Bermuda, and [now] Ghana.
Brownlee and Hickmans businesses are clear cases of success but perhaps anomalies in the Trump economy. The U.S. Bureau of Labor statistics projects the growth rate of the Black labor force to be slower than the growth rate of the Black population between 2018-2026. Furthermore, the overall labor force of Black Americans has been on the decline and is between 5.4 percent-10.1 percent in California.
Brownlee said, I dont think that when you are a small business. You have many resources; they are limited. The Guidant Financial Small Business Trends and Statistics show that 67 percent of small business owners face the lack of capital, marketing, and advertising efforts.
African American small businesses exist in California but a majority of them are not certified in the State, Brownlee stated. The small business administration [found] that there is ten thousand African American businesses in the state of California.
Brownlee said the Black Chamber of Commerce is making efforts to find the business owners to help them get registered. Brownlee said this is important because this gives African American business owners the opportunity to be on the list, so when individuals are looking for businesses they can be contracted.
Under the Trump economy, Brownlee says, it is big businesses [who take] contracts and if they want to work with small business they may work with small women-owned businesses, not African American women, just to meet that check box. According to the Public Law Research Institute this check box is the federal preferences in public employment, contracting, and education based on ethnicity to eradicate discrimination. In business, the mindset is the same racism is becoming blatantly more open Brownlee said.
Its really hard for small minority businesses, there has to be organizations advocating on your behalf, to show the value of African American businesses Brownlee said.
African American businesses need more access to education and tools, Brownlee stated. We need to have more partnerships within the African American community.
African American business owners have to be more conscious, more aware, because we are not going to survive in this administration or any administration really going forward, unless we really understand what business is.
This article is extremely biased because none of the interviewees has said anything positive about the Trump Administration except that the new tax laws will help them. HUH!
If you can’t get a job with someone else’s company, start your own if you have a good idea, and don’t blame everything on racism.
My longtime supervisor is a black woman attorney and one of the nicest persons around, plus she is the superwoman of her job. She’s competence times 10 and has a great attitude about the people she works with.
With one company, I was in charge of directing a major research project with 15 paralegals under my supervision re archival/library research.
I helped train one young black man, a Vietnam combat vet (surprisingly he served under my friend’s command in the Central Highlands). Over time, he became a good researcher to the point that when the multiyear contract was over, he started his own business and thanked me for helping learn the skills necessary for it.
It’s people who count, not their race. It’s their skills that count, no the color of their skin, or religion, or what they eat.
The LA Times piece left all of this out. I wonder why? Oh, they’re the LA Times. Never mind!
Go look again. It’s not the L.A. Times.
California...build the wall. I'd bet the farm Hispanic % of labor Force rose while black declined.
What a truly offensive flaming pile of bull crap. The first guy, Hickman, with the Tea Company. Oh great so we started his Tea Company wandering around the world and seeing the community that resulted from people drinking tea. That is just magnificent and I wish him every success in the world. But he has a losing business and it’s been losing for 7 years and now that it is losing under Trump but he gets better tax breaks its Trump’s fault, and then the people are keeping them down because of racism. I detest these people, I truly do.
Nobody gave me any breaks when I ran my businesses. I didn’t have organizations advocating on my behalf. I didn’t blame people when I lost business and I didn’t blame society when one deal went my way in another one didn’t or three deals didn’t.
Then the second owner, the one with the communications company. I have no idea what the topic matter of her business is but whatever Gap there is between where her business is and where she thinks it should be is because there isn’t a program to get here from point A to point Z. She claims that opportunities are going away horse crap. These people sicken me. That may sound harsh, but they wouldn’t do spit to help me if I were in their position, but then again, they would never know because it would not be me complaining to them about whatever shortcomings I have.
They also for the most part live in California which is anti business.
Yep and not just because they are black. These (fill in blank)s give good blacks bad names.
Feed them hot food and they will biotch about the table they have to sit at.
Um, Mr. Brownlee, with respect, sir - it's really hard for ANY small business. 4 out of 5 of them fail in the first year, from what I've heard.
From.... Eddie Murphy?!? d;^)
If I add those up, 100% of all small businesses are out of business in 5 years?
::African American business owners have to be more conscious, more aware, because we are not going to survive in this administration or any administration really going forward, unless we really understand what business is.::
Astounding. Simply astounding.
Lately, every article I read leaves me wondering if I am even breathing the same air as the rest of the country.
No, it’s like this.
Say you start with 100 small businesses.
After the first year, there are only 80.
After the second year, there are only 56.
After 5 years, only 28 left.
After 10 years, of those 28 that survived, only 19 (actually, 19.6) survive.
I suppose you could simplify and say 81% of small businesses fail after 10 years...
Or I’m wrong.
I got the numbers from the government, after all!
If you would have stated it as percentage of ‘remaining’ businesses, it would have made more sense.
Yes, correct. The post came from a top Bing search quote which came from the Government. I should have said so in the first post.
Even so, you have to look at the chart entailed in the link to understand it is “remaining”.
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