Black Business in Colonial America

By Karleton Thomas

As enslaved Africans gained their freedom in colonial America, they used the labor activities

learned in slavery to start a new life. Across the cities and towns of this nation, free Blacks set

up agribusinesses. They took up as bricklayers, gunsmiths, shoemakers, nurses, and innkeepers

to form the initial steps of the Black business community. Collectivism underlined the economic

activity of free Blacks in colonial America as they worked to establish independence in an

outwardly racist society successfully.

Those days are long gone, and blatantly racist laws, such as those barring credit to free Blacks,

no longer sit on the books of American cities. By comparison, the discriminatory laws of today

hold little weight when viewed next to laws in place during colonial America. Few, if any, Black

businesses of that time were allowed to grow outside of the community, but colonial-era Black

businessmen thrived when compared to those of today.

Many arguments have been made regarding the decline of the Black business community -

integration, angry white mobs, racist laws, etc. Though all contributing factors, none can fully

explain the demise of the Black business community. As markets opened up and Blacks were

able to walk through doors closed to previous generations, one would expect burgeoning Black

business metropolises to follow, but despite our best efforts, that never happened.

Today, most Black businesses fail within four years. For all the businesses being started by

Black entrepreneurs today, 87% will gross less than $15,000. Most can be categorized as

lifestyle businesses - entities run by its founder for the benefit of its founder. That’s a hard sell in

a community but despite this, the age of individualism looms on. It wasn’t the angry mobs or

racist laws that first slowed and then stalled progress, it was the varying motivations developed

amongst the Black community. Now, instead of a few options, Blacks were able to chart

individual pathways designed for their sole benefit. This produced outstanding, singular results,

but for many Black entrepreneurs the lack of community has proven to be an insurmountable

obstacle.

Our formerly enslaved, African ancestors practiced collectivism because pulling together to

ensure a chance at survival. Collectivism does not make much sense today but the principals

live on in cooperative business practices. A cooperative business model is one that responds to

the needs of all stakeholders; employees, customers, suppliers, the local community, the

environment and future generations, as well as investors. The adoption of the cooperative

business model as the framework for current and future Black business communities presents

two huge benefits: the recirculation of Black dollars and low unemployment.

The Black dollar and its effect or lack thereof has been well documented across academic

journals. At one point, it was reported the average lifespan of the Black dollar in the Black

community was six hours compared to 28 in Asian communities. That fact was proven to be

false but when the majority of businesses in Black communities are owned by individuals who

do not live or hire from that community - the truth is not far away. It is safe to assume that over

$.50 of every dollar spent leaves the community.

When a business in the Black community is owned by someone who lives and hires from the

community - we all benefit. Cooperative business models present a number of workforce

development opportunities for free Blacks who have been denied entry to the traditional job

market. As more cooperatives are formed, unemployment in those areas will dramatically

decrease, so will crime, drug use, and dependence on government programs. Grocery stores

wholly owned by the community can employ 100’s of employees with an invested interest in that

venture's success. They would live and work in the same area - tending to and protecting their

future.