Asked to comment, Civic Committee President Kelly Welsh says: “We’re in early stages of addressing this challenge in business diversity and in developing a program in this regard.
“The thinking is that this is going to be a long-term commitment over years. We’ve engaged members and also have gotten tremendous pro bono support from McKinsey and BCG and teams from those organizations to help us review best practices and undertake pilot programs to develop innovative and better ways to grow business diversity.”
Research provided by the Civic Committee shows that in 2017, Illinois had 7,197 MBE businesses in the professional and business services sector, with average revenue of $1.6 million. MBE is defined in the research as a business with a Black, Latino or Asian/Pacific Islander owner.
Rogers says the committee is talking to leaders throughout the Chicago area to get commitments “first to try to build out large technology businesses of scale in the African American community.” The focus there is on high-growth sectors, with business and professional services being the top category and generating about $85 billion with profit margins typically 5% to 20%. Rogers notes that previous efforts to increase Black business participation focused on supplier diversity, “pushing Black businesses into the lowest margin, least important parts of the spend while the wealthiest people in Chicago were in professional financial services and technology.”
A Bank of America national survey over the summer found 85% of Black small-business owners say social justice issues have impacted their approach to running or conducting their business, including, openly communicating a commitment to equity. The Small Business Administration defines a small business by firm revenue (ranging from $1 million to over $40 million) and by employment (from 100 to over 1,500 employees).
BEYOND SMALL
But more Black-owned businesses want to get beyond “small.” Williams, a principal at MK Asset Management, owns and manages more than $100 million in commercial and residential buildings. He co-founded Umoja Supply Chain Solutions, a logistics company that specializes in hunger relief and food for health with warehouses in Houston, Sacramento, Calif., and Youngstown, Ohio. “More than half of my partners are Black. All businesses are minority controlled.”
His college student niece said to him, “Uncle Hugh, it sounds like you want to build a legacy.”
“I want to build a Black conglomerate,” he says.
Others want to build a brand. In mid-August, Lita Selmon opened Einnim, what she calls a lifestyle brand, in downtown Oak Park. The store, next to the Lake Theater, sells organic and natural apothecary products handcrafted by Selmon. She watched her Los Angeles-based friend grow her own beauty brand, Freck, into a multimillion-dollar company in three years. Since opening, Selmon, a former director of operations for a marketing agency, has added several employees. “I want to hire people who have the same spirit as I do to grow and then move on or help build this empire.”
In Hyde Park, Leslie Roberson opened the Velvet Collection, the only Black-owned luxury linen rental business in Chicago, on 53rd Street. Roberson, who once worked for the e-commence home goods company Wayfair, wasn’t deterred by opening a shop during the pandemic. She’s already thinking about more studios, warehouse spaces, delivery trucks and brand recognition. Her growth prospects are based on the market research she’s been doing. “I’m going to go big or go home,” she says.
The founders of the Black Bread Co., Einnim and the Velvet Collection are all in their mid- to late 30s. They bring a sophistication with digital platforms and social media that an earlier generation didn’t have. And, some might say, a boldness about building their businesses that their predecessors also didn’t have.
“The Black Bread Co. founders are looking to go beyond selling premium loaves and hotdog and hamburger buns. They plan to move in gourmet foods—and extend their brand throughout the store. To get an estimate of what the company might one day be worth, they sought an independent valuation. “Up to $50 million,” the valuator told Crain’s.
“We look at what we’re doing and what many Black entrepreneurs are doing,” says Alexander, one of the Black Bread Co. co-founders. “It’s the new Black Wall Street. We are reinventing.”
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