Category: ED Message

On November 2, 2023, the Black Business Association of Oregon revealed its Black Economic Prosperity Dashboard. The dashboard assembles key data to tell the socio-economic story of the state’s Black community—a story that is often lost in broader, population-wide reports on community outcomes. The data in the dashboard will be used to inform decision makers, stakeholders, and the public as they consider changes to public systems, policies, and practices to support more broadly shared economic prosperity. The dashboard assesses community conditions across five domains: population, health, education, economic well-being, and business ownership.

The data under the chosen domains will provide a better understanding of the current economic state of Black business and Black residents in Portland and beyond. The data will also serve as the baseline for creating a Regional Strategic Plan for Black Prosperity. The dashboard will also be used to measure key metrics, analyze trends, and report publicly on the status of our efforts to create Black economic prosperity. To see the dashboard and the data it presents, I encourage everyone to visit this link and explore the findings: https://bbaoregon.org/black-prosperity-dashboard/.

The Black Business Association of Oregon’s approach to developing a strategic plan for economic prosperity for Oregon will by no means be typical. It will be unique in that we will be reaching out to individual stakeholder who have expertise in the five domains indicated on the dashboard, and asking them to analyze, interpret, provide reasoning, and suggest short-term, mid-term and long-term actions that must be taken to improve the current situation of Black Oregonians. Our work has just begun. Stay tuned as we will provide updates on our progress.

Lance J. Randall, Executive Director

With that in mind I work with Black-owned businesses to develop their value proposition to give them a competitive advantage in the marketplace.

A value proposition is a statement that clearly identifies the benefits a company’s products and services generates customers. A strong value proposition will differentiate the business, the products and service from competitors in the marketplace and draw in customers.

There are three elements of a strong value proposition:

1. Value. The product or service must be something that the customer needs or really wants.

2. Differentiation. There must be something about the product or services that makes it more attractive than competitors.

3. Substantiation. The product or service must satisfy the customer

When it comes to products or services being offered by a business it is important for the customer to see their value. The best way to do that is to clearly explain how a product or service fills a need, communicate the specifics of its added benefit, and state the reason why it’s better than similar products or services on the market.

Here are the four types of customer value:

1. Functional Value. Is determined by the product or services as to whether it they meet the customer’s needs and wants and the usefulness of the products.

2. Monetary Value. Refers to the value of a product or service measured in terms of the costs.

3. Social Value. The positive impact and value that a product or service brings to society as a whole, beyond mere functionality.

4. Psychological Value. The extent to which a product or service allows customers to express themselves or feel better.

If a business’s products or services is able to meet these criteria, a business will have a diverse customer base that will clearly see the value of its products and services.

To be competitive, it is important for businesses to show differentiation from the competition. Essentially, differentiation in business refers to the principle of setting your company apart from the competition through a specific element, such as your distribution network or price-point. It provides a superior level of value to your customers and helps your company to distinguish itself in the marketplace.

Here are some ideas from the Will Williams of JDR Group on how to differentiate your business from others:

1. Create A Genuinely Unique Selling Point. Research your competitors and identify some that only your business is doing compared to the others.

2. Do Business Differently. Research the way your competitors are doing business and whatever they are doing, do it better.

3. Solve Your Customer’s Problems. Understand the issues of your customers and tailor your products and services to solve their problems.

4. Don’t Be Too General. Don’t try to sell everything. Instead specialize in one or two niche areas that are in high demand, and provide your customers the best quality and price of those products or services.

5. Establish Your Individual Business Culture. Establish a customer experience through your business culture that ties into what the customers actually want.

6. Be Better and More Creative at Marketing. Your marketing strategy shouldn’t emphasize the ways in which you’re similar to your competitors, but the ways in which you are different. Don’t be afraid to break the mold with your marketing communications.

Businesses that can clearly show that they are different and better than their competitors will stand out in the marketplace and will attract customers to their products and services.

The best customers are those who frequent business on a regular basis to purchase their products and services. If they have a great customer experience, substantiation of the business’s products or services is imminent.

Here is how to make sure your customers are satisfied with your products and services:

1. Focus on Quality, Not Quantity. Understand how your customers define quality and make sure that the products or services meet their standards.

2. Over Deliver on Performance. Make sure that the price does not overshadow the performance of your products or services.

3. Keep Offerings Current. Make sure your products and services are keeping up with the trends of the market and needs of the customers.

4. Customer Engagement. Organizes interactions and activities into a streamlined plan to create the ultimate customer experience, including before and after the purchase.

A competitive advantage is anything that will give a business an edge over its competitors, helping it attract more customers and grow its market share. With the right value proposition, Black owned businesses can be competitive and do well in the broader marketplace.

Lance J. Randall, Executive Director

On May 25, 2020, George Floyd, a 46-year-old black man, was murdered near the intersection of East 38th Street and Chicago Avenue in the Powderhorn Park neighborhood of Minneapolis, Minnesota, by Derek Chauvin, a 44-year-old white police officer with the Minneapolis Police Department. Floyd’s murder led to worldwide protests of police brutality, police racism, and lack of police accountability. This event also incited a movement to bring about economic justice for Black businesses that have not been afforded ample opportunities to grow and prosper in the state of Oregon.

On June 9, 2020, Black members, and past Chairs of the Portland Business Alliance issued a call-to-action for economic justice for all Black Oregonians. The members were Sam Brooks, Janet Campbell, Andrew Colas, Alando Simpson, and Charles Wilhoite.

These change agents determined that the George Floyd murder was a clear representation of an “Invisible Knee” that has been pressed on the necks of Black Americans as an unobservable force that has prevented Black families from building, growing, and sustaining generational wealth within the state of Oregon. They insisted that if we are to achieve justice that is lasting, and durable, we must include an unapologetic Black economic resilience agenda for our region.

The very next day, June 10, 2020, the development of the Black Economic Prosperity Agenda (BEPA) began when members of the Portland Business Alliance (PBA), the largest area chamber of commerce in Oregon, came together to unite on the economic agenda that would create an inclusive economic economy for all Oregonians. In addition, a partnership agreement was reached with the National Association of Minority Contractors – Oregon Chapter (NAMC) to be the organizational steward to ensure anonymity and mission alignment.

The goals of the BEPA are:

A Regional Dashboard of Black Prosperity

The dashboard will measure key metrics that track the economic state of Black residents in the region. The dashboard will also analyze trends and produce public reports on the progress of the BEPA.

A Strategic Plan for Black Economic Prosperity

The strategic plan will use key metrics from the dashboard to develop action items to increase economic prosperity for Black business and residents in Oregon.

A Regional Center for Black Advancement

The regional center will be a facility that provides all of the necessary space and tools Black businesses, and residents need to grow and maintain intergenerational wealth. The center will have incubator space for new businesses, office space for other Black led organizations, space for networking and educational events, mentors, technical assistance experts and a community development financial institution (CDFI).

The Black Business Association of Oregon (BBAO) is an economic development organization that strives to achieve economic equity that is sustainable and lasting in the state of Oregon. It was established to fulfill the goals of the BEPA.

I am honored to serve as the initial leader to build this much needed organization that will bring partnership, progress, and prosperity to Black Americans in Oregon.

Lance J. Randall, Executive Director

The Certification Office for Business Inclusion and Diversity (COBID) is where the public and private sector turn to find businesses of color for contracting opportunities in Oregon. The problem with this system is that the process to become certified is so challenging that many business owners of color, especially Black business owners, struggle to complete the process or simply choose not to pursue COBID certification. As a result, the COBID database is not representative of businesses of color that are licensed to operate in Oregon.

Every business that wants to operate in the state of Oregon must apply for a business license and renew the license annually through the Secretary of State’s Office. While it is possible to view all businesses that are licensed to operate in Oregon through the Secretary of State website portal, there is no way to identify which businesses are owned by people of color.

There are many businesses owned by people of color that are licensed to do business in Oregon, but it is difficult to find out who owns the businesses and where they are located. This makes it challenging for private sector businesses to find businesses of color for contracting opportunities. It also makes it difficult for organizations that can help businesses get COBID certification, identify and locate businesses owned by people of color to help them get certified. Businesses owned by people of color are not getting enough contracting opportunities in the private and public sector because of this issue and legislative proposal can help remedy this problem.

A new approach to help Oregon do a better job in helping create opportunity for businesses owned by people of color, is legislation that would allow every business that applies for or renews a business license, to identify the ethnicity of the business owner or principal of any corporation legally operating in state of Oregon on the business license application. In addition, the Secretary of State website portal should be updated to allow the non-profit organizations that serve businesses owned by people of color to request a list of businesses using the race or ethnicity of the business owner as a filter.

2022 marked the 20th year for Annual Leadership Summit, a forum that draws business, community, and elected leaders from across the state to address policy issues critical to Oregon’s economy and life.

In preparation for the event, Oregon Business prepared a preliminary 10-point policy agenda with an overarching vision of Shared Prosperity, that will present opportunities for action in 2023 and beyond. Point number 9 of the policy is, “Economic Development: Create an economic development infrastructure that supports business expansion statewide.”

The preamble of Policy Point 9 states, “It’s time to rethink how we organize for economic development. Effective economic development efforts bring community leaders together to provide responsive services and to make the case for doing business here. Currently, Oregon’s public and private efforts are well-meaning, but scattered and misaligned. As a result, Oregon is missing opportunities to create, recruit and grow businesses.”

One of the 3 recommendations in this section is to, “Create a state-level forum to identify and address the specific challenges of minority and women owned businesses.”

To be successful with this recommendation, it is important for the state to be able to identify the individual businesses that are owned by people of color and where their businesses are physically located. This is the best way to identify and address specific challenges of businesses owned by people of color.

This legislation calls for the establishment of a Business Registration Information Center within the Office of the Secretary of State to collect culturally specific data from existing and new registrants and share the information with community-based organizations that foster economic development and engage in substantive efforts to increase the number of minority-owned businesses, women-owned businesses and businesses that veterans own. The data will also make it easier to find these kinds of businesses that already exist so that they can receive services to help them grow and expand.

Oregon House Bill 3272 is currently in the Joint Committee on Ways and Means. It is important that this legislation be passed out of this committee and referred to the Oregon House and Senate for full approval.

If this legislation passes both Chambers and is signed by the Governor, it will help us truly understand the diverse make up of businesses in Oregon, make it easier for culturally specific business to find businesses of color and help grow and expand. This in turn will not only improve the economic condition of communities of color but will also improve the economic condition of the entire state of Oregon.

I encourage our elected officials to pass this legislation so that all businesses can be successful and help grow Oregon’s economy.

Lance J. Randall, Executive Director

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