Black Entrepreneurs Ride Out Recession

Although the weak economy is playing havoc with many small- and medium-sized businesses, some of Southern California’s black entrepreneurs say they are riding out the recession well.

Several of the 250 business owners signed up for the third annual Los Angeles Black Business Expo said in interviews that adversity forces them to be more creative, but overall, they are doing fine.

“Small, black-owned businesses are probably the least hit by the recession, contrary to popular belief,” said Debi Lewis of Lewis & Lewis Marketing Services in Inglewood. “They are in business to fill a need and they have been dealing with difficult times, so this is nothing new.”

Lewis, who has provided free marketing advice to dozens of Black Expo participants gathering Saturday at the Los Angeles Convention Center, said there is a wider range of businesses participating this year.

In the two years past, many exhibitors were small retail, cleaning or food businesses. This year, the Expo has attracted computer consultants, legal and financial services firms, consumer products companies, catering companies, realtors and other professionals.

“These days, black business owners are looking outward to be in non-traditional black-owned businesses,” said Nelson Davis, whose television production company produces “Making It: Minority Success Stories” for KTLA Channel 5.

In recent years, Davis said he has seen black entrepreneurs enter all kinds of businesses, from a map-making company to a large paint and coatings business.

According to the 1987 Economic Census, there were about 24,000 black-owned businesses in the Los Angeles, Long Beach and Los Angeles County area. Orange County had 1,300 black-owned businesses, with 2,800 in Riverside and San Bernardino and 404 in the Oxnard-Ventura area. More current numbers are not yet available, according to local economists.

While some black business owners are reaching out to the mainstream, Muhammad Nassardeen, founder of Recycling Black Dollars, is encouraging black merchants and consumers to buy more goods and services from each other. A former community service director for Centinela Hospital, Nassardeen established the organization in August, 1988. Today, it has nearly 2,000 members.

Business owners who join the group agree to offer 10% discounts to each other and to consumer members. Members also meet weekly to exchange ideas and promote their products and services.

Nassardeen said businesses providing basic services such as shoe repair, dry cleaning, video rentals and restaurants serving moderately priced food are thriving today.

“But black art dealers and the bigger, fancier restaurants are hurting,” he said.

Barbara Lindsey, founder and director of the Los Angeles Black Business Expo, said this year’s show includes 50 workshops and seminars, a fashion show, exhibits and special guests. She, too, is pleased with the increased diversity of the businesses represented.

“This is great because the whole purpose is to develop ongoing business relationships, not just to buy things,” Lindsey said.

The Expo runs Saturday from 10 a.m. to 8 p.m. and Sunday from 11 a.m. to 8 p.m. Tickets are $6.