Earl Gilbert Graves Sr. was an American entrepreneur, publisher, businessman, philanthropist, and advocate of African American businesses.
A graduate of my alma mater Morgan State University in Baltimore, Maryland, Graves was the Founder and Publisher of Black Enterprise Magazine and is considered the quintessential entrepreneur who created a vehicle of information and advocacy that has inspired four generations of African Americans to build wealth through entrepreneurship, career advancement, and money management.
In his award-winning, now classic, business bestseller, How To Succeed In Business Without Being White, Graves stated his life-defining purpose for founding Black Enterprise in simple, direct terms: “The time was ripe for a magazine devoted to economic development in the African American community. Black Enterprise was committed to educating, inspiring, and uplifting its readers. I aimed to show them how to thrive professionally, economically, and as proactive, empowered citizens.” Graves makes one of the most profound statements in his book: “Economic power is the key to success in a capitalistic society. Business is the means to that power. African Americans can play this game, and we can win at it. You can succeed in business without being white.” What is this game called capitalism, and how can we, as African Americans, win?
Capitalism is an economic and political system in which private owners control a country’s trade and industry for profit. For African Americans, capitalism is a political movement seeking to build wealth through the ownership and development of businesses. The way African Americans can play and win the capitalism game is to understand three basic principles: (1) entrepreneurship, (2) vertical integration, and (3) group economics.
Entrepreneurship is essential for creating wealth in a capitalistic society. To succeed in capitalism, African American entrepreneurs must establish and maintain viable businesses to become financially independent and acquire economic power. This requires African American entrepreneurs to master the four key elements of owning and running a successful business: product, market, money, and people.
Once African American entrepreneurs successfully master running a viable business, they must position their businesses for growth. The best way to do this is through vertical integration. This is an expansion strategy where a business takes control over one or more stages in the production or distribution of its products. This strategy allows a business to streamline its operations, reduce costs and increase revenue by taking direct ownership of the production process. However, it also creates an opportunity for other Black-owned businesses to participate in group economics which is critical to building up our Black communities.
When successful African American entrepreneurs, who have established businesses, invest in up-and-coming African American entrepreneurs and create opportunities for them to be suppliers, manufacturers, distributors, and retailers for their businesses, it will bring about group economics for the Black community.
Group economics is a concept that emphasizes the financial empowerment and growth of a community through the collaborative efforts of its members. Cooperation among Black community members, businesses, and institutions is crucial for the success of group economics. By forming strategic partnerships, members can create synergies that lead to innovative business models, job creation, and overall economic growth.
If the three basic principles, entrepreneurship, vertical integration, and group economics, are practiced consistently by African American entrepreneurs, we will master the game of capitalism and improve the overall economic conditions of our communities.
Lance J. Randall, Executive Director