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Black-owned businesses make gains

Data show African-Americans owned 1.2-million businesses in 2002, a 45 percent increase since 1997, but some bay area owners say more progress is needed.

By TOM ZUCCO
Published April 19, 2006

	[Times photo: Willie J. Allen Jr.]
	Carl and Emma Calhoun are co-owners of the Commercial Bedding Co. in St. Petersburg, ranked one of the five largest black-owned businesses in the region.

ST. PETERSBURG - The number of black-owned businesses in America swelled to 1.2-million in 2002, an increase of 45 percent from 1997, the Census Bureau reported Tuesday.

And revenues generated from black-owned businesses increased by 25 percent during that period, to about $89-billion.

Among states, Florida had the third most black-owned businesses, behind New York and California.

"It's encouraging to see not just the number but the sales and receipts of black-owned businesses are growing at such a robust rate, confirming that these firms are among the fastest-growing segments of our economy," Census Bureau director Louis Kincannon said in a statement.

But not everyone was so enthusiastic.

Carl and Emma Calhoun leaned forward at a conference table Tuesday inside the Commercial Bedding Co. factory in St. Petersburg and looked over the census report.

While the number of black-owned businesses grew more than four times the national rate for all businesses, other numbers in the report weren't so flattering. Among them:

Five percent of all U.S. businesses were owned by African-Americans in 2002. That year, blacks made up about 12 percent of the population.

Ninety-two percent of black-owned businesses had no employees other than the owners. By comparison, about 75 percent of all U.S. businesses have no employees.

"We only own 5 percent?" Emma Calhoun asked. "That's not an impressive number. We should be doing much more. "But we had a long way to come from," she added, "so I guess it's better than where we were."

The numbers from Washington paint a mostly encouraging picture for diversity. From 1997 to 2002, the number of businesses owned by women grew by 20 percent, to 6.5-million. And the number of Hispanic-owned businesses grew by 31 percent, to nearly 1.6-million.

And while blacks as a group still trail whites in education and income, they have made gains in the past half-century. In 1950, only 14 percent of black adults had high school diplomas, compared with 36 percent of whites, according to the Census Bureau. The gap narrowed by 2000, when 72 percent of black adults had at least a high school diploma, compared with 84 percent of whites.

But numbers, say the Calhouns, who are African-American, don't always tell the whole story.

"In the beginning, we had to prove ourselves," Emma Calhoun said. "Nobody would give us a chance."

In 1982, Carl Calhoun left his job as a banker and his wife left her job as a high school biology teacher to buy Commercial Bedding, a small mattress-making factory in Clearwater.

They grew from six employees and a 5,000-square-foot building to nearly 60 people, a 50,000-square-foot building in St. Petersburg and revenues last year of nearly $6-million.

Commercial Bedding was ranked last year by Power Broker Magazine as one of the five largest black-owned businesses in the Tampa Bay area.

But it was only with financial help from their families and a loan officer who was willing to stick her neck out for them.

"The banks just couldn't fathom a black person running a manufacturing firm," Emma Calhoun said. "But thankfully, Barnett Bank had an African-American woman in place to help us. They turned us down, but she wouldn't take no for an answer. She was almost in tears and just kept on them until they said yes."

The couple now try to speak to as many young black entrepreneurs as they can. They tell them what they need to do and about the mistakes they made when they were starting out.

But they wonder how much of the spirit that compelled them to strike out on their own is still alive.

"Most people coming out of college are geared up to work in a corporation," Carl Calhoun said. "That's fine . . . until you hit that ceiling, like I did in the banking business.

"Either you stay there," he said, "or you get off it and try to achieve something on your own."

He glanced at his wife of 35 years.

"She thought I was a nut case when I said I wanted to do this," he said. "And there are some days when I wish I didn't.

"But you take a lot of pride in things like this."

And when people come to their factory and are surprised to learn it is owned by African-Americans, they have a response.

"We tell them yes, blacks do run and own successful businesses," Emma Calhoun said. "And you can do it, too."

Information from Times wires was used in this report. Tom Zucco can be reached at zucco@sptimes.com or 727 893-8247.

In 2002, nearly four in 10 black-owned businesses operated in health care, social assistance, or repair and maintenance. African-Americans owned 9.7 percent of all such businesses in the United States.

Retail trade, health care and social assistance services accounted for 28.6 percent of all black-owned business revenue.

There were 10,727 black-owned businesses operating in 2002 with receipts of $1-million or more. Those businesses accounted for 1 percent of the total number of black-owned businesses in 2002.

There were 973 black-owned businesses with 100 or more employees in 2002, compared with 889 such businesses in 1997, an increase of 9 percent.

From 1997 to 2002:

The number of all U.S. businesses grew by 10 percent, to about 23-million.

The number of businesses owned by women grew by 20 percent, to 6.5-million.

The number of businesses owned by men grew by 16 percent, to 13.2-million.

The number of Hispanic-owned businesses grew by 31 percent, to nearly 1.6-million.

The number of businesses owned by white entrepreneurs grew by 8 percent, to 19.9-million.

Source: Census Bureau

[Last modified April 19, 2006, 01:58:13]