Black businesses in Tacoma are strong and resilient. Here’s reason for hope, not despair
A recent article in The News Tribune tackled an important topic pertaining to the struggles and trials facing Black-owned businesses in Tacoma. The article was interesting and informative, but also incomplete. It is undeniable that Black-owned businesses face significant obstacles to enter the market and demonstrate to a skeptical clientele they can provide highly value-added products and services like their white counterparts, but the underlying message of the article is a bit too pessimistic for my taste.
In my view, the usual suspects — bank redlining, COVID-19 and racial discrimination — received disproportionate attention. The usual suspects are important, but do not capture the full picture of Black business behavior. To be complete, we need to understand the importance of economic analysis, public policy and community-based intervention.
Economics stresses the role of incentives and information that allow market agents to make rational decisions. Accounting is the language of business, and marketing is the art of business. But economics is the business of business. Applied to Black business formation in Tacoma, this translates into risk-adjusted entrepreneurs responding favorably or unfavorably to market signals about what to produce, how to produce and for whom to produce. In short: Is the price right?
The somber message in the article failed to communicate current Black business growth and expanded opportunities in the country. As an economist, I appreciate the article citing data by the National Bureau of Economic research on this topic. But more data is needed for readers to have a balanced picture.
Last October, the Census Bureau released updated data about Black business formation in the United States. There are currently approximately 135,000 Black- or African American-owned businesses in the U.S., generating $135 billion in annual receipts — while supporting more than 1 million employees and about $41 billion in annual payroll. This represents a 12% growth rate since 2017.The Census data accentuates hope, not despair.
The message of hope for Black businesses in Tacoma is also seen in recent Black business-friendly legislation passed by the state Legislature. Thanks to such legislation, the Office of Minority and Women’s Business Enterprises will be far more aggressive in documenting how state agencies are using Black contractors in their small works rosters. And last month Governor Inslee promulgated a new executive order that restores new life to Affirmative Action — which will directly benefit Black businesses. These progressive public policy pronouncements will bring material improvement for Black businesses.
Black businesses in Tacoma are resilient. The evidence of resiliency is supported by community intervention efforts led by non-profit organizations like the Tacoma Urban League, Tacoma-Pierce County Chamber of Commerce and the Tacoma-Pierce County Black Collective. I currently chair the Economic Development Committee for the Black Collective. Last year I unveiled a community intervention strategy that sought commitments for Tacoma residents — and especially Black residents — to patronize at least one Black business per month. I am also proud of my fellow volunteers who are rolling up their sleeves and working alongside Pierce County Economic Development office initiatives like the BIPOC Business Accelerator program and the soon-to-be launched Navigator Business Program to foster economic opportunities for Black businesses. These programs are not panaceas for Black businesses. However, they will get us moving in the right direction for mitigating racial economic inequality in Tacoma and Pierce County.
A problem will not be resolved by articulating despair and submitting to a “Chicken Little” paradigm. Understanding economics, public policy and community intervention must be a part of the narrative.
Bill Dickens is an economist with over 35 years of experience in the public sector, private sector and higher education as a college professor. He is a retired senior economist at Tacoma Power and enjoys his time reading, writing, traveling and working as a substitute teacher in University Place.
This story was originally published February 16, 2022 at 5:00 AM.