Monday, June 17, 2013

Filling the Unemployment Quagmire



NYS Dept. of Labor’s Preliminary Area Unemployment Rates monthly report for April 2013 puts the state’s rate at 7.8%, which is the state’s lowest level since March 2009.  NYC’s rate (all 5 boroughs) for April was 7.7%.  This is down from 8.5% since the preceding month.  These figures strongly suggest that the local economy is bouncing back from the “Great Recession”.
Digging deeper reveals where high unemployment persists.  The Bronx County’s rate is 10.5% and Kings County’s is 8.4%, followed by Queens, Richmond County, and New York County at 6.9%, 6.7%, and 6.5%, respectively.
Census 2010 and historic residential patterns show that the Bronx is the home of most Hispanics and Brooklyn having the highest number of blacks in the City.  Could it be that NYC blacks and Hispanics experience higher unemployment than other New Yorkers?  Unfortunately, this is the case.
April 2013 figures for NYC Human Resources Administration’s three cash assistance programs count 363,991 recipients where most reside in Brooklyn (36.8%) and the Bronx (32.5%).  The case heads, regardless of residence, are primarily black (46%) and Hispanic (42.3%) for these programs.  White and Other are cumulatively a distant 11.67%.
What accounts for the high unemployment?  “Lack of education makes them unemployable”, asserts Michelle George, Brooklyn Community District 8 Manager.  This district covers Prospect Heights, northern Crown Heights, and Weeksville.  “Their high school dropout rates are higher than whites and the types of jobs that ‘lack of education’ affords—fast food and retail—[this population] doesn’t want”.  Workforce One Centers are dealing with this aversion by preparing Workforce One members for such employment.  Their clients include Home Depot, Lowe’s, Victoria’s Secret, Hale & Hearty Soups, and Burger Shack.
Glen Ettienne, owner of Delux Gallery Natural Hair Salon, in Clinton Hill, contends media exposure shapes young blacks' and Hispanics' life decisions.  “The people who own the press understand that we’re followers.  50% can’t think for themselves.  In owning the press, they can sway the public”.  Ettienne believes the music industry is another influencer.  “The original rap music was conscious rap that lifted us”, Ettienne opines. “So the record executives had the musicians change their lyrics.  Now nobody raps about going to college, respecting your brother, or raising your child.  'It’s drive a nice car', 'get, the money', 'get the bitches'”.
Others observe that neither public schools nor parents are adequately presenting the breadth of career and occupation options that youth could consider.  There are black businesses that admirably weather the current economic climate.  Black Enterprise’s Industry Leaders lists include many local enterprises.  Kristal Auto Mall, Uniworld Group, Inc., the Brooklyn-based advertising agency, Carver Federal, with branches in three boroughs, Valentine Mfg, in Hauppauge, and Prime Access, a marketing company need mentioning.
Where there is no apparent work people must make work.  One recession-proof industry is food and beverages.  Lowell Hawthorne turned one Caribbean cuisine restaurant into a franchise called Golden Crust Caribbean Bakery & Grill.  Franchising resulted in not only a business for Hawthorne and his co-founder but businesses and employment for 120 franchises.
Franchising can be an expensive proposition.  Golden Crust franchisees invest between $173,000 and $564,000 to operate the moneymakers.  There are franchises that require much lower cash outlays.  Janitorial franchises are within reach of moderate income households.  The investment ranges between $1,500 and $55,000.  JAN-Pro Cleaning Systems with 10,414 franchises in the US counts 2,675 franchises owned by black executives.  Investment is from $3,145 to $50,130.  Returning to attitudes, blacks and Hispanics must rethink what is worthy work and how to build wealth, if the community is determined to solve the unemployment quagmire.

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Monday, January 7, 2008

There's Still No Such Thing as a Free Lunch


Just as multilevel schemes, once called pyramids, come and go, there's an ebb and flow for the search for grants by small businesses. Over the holiday, I heard two people talking about needing a hedge for retirement. One person was retired from the federal government--USPS--and saw her funds shrinking monthly. She was in her 70's. If she continued to live, her pension would not be her sustenance. She spoke about a business seminar she attended where it was explained how to make money on the Internet. I entered their conversation to ask whether the presenters talked about search engine optimization or search engine marketing. If you're doing e-commerce you needed the methods for driving traffic to your site. The elder said that they weren't discussed.
They resumed their conversation. The retiree was alerted to government grants for businesses. There are no grants for businesses. There are loans, lines of credit, investment pools, business plan competitions and investors but there aren't federal grants. I entered the conversation again to explain grants are possibilities for incorporated nonprofits with IRS recognition. The elder did have a connection with an existing nonprofit. Would they solve her shrinking nest egg?It is in her best interest to secure alternate streams of income. A part time job or a business with which she has familiarity are feasible. Vending merchandise might be the answer. If she has any excess funds, she ought to consider emerging portfolio management firms. These are the smaller investment houses and brokerages that have fire in the belly. There was a breakfast meeting called "Access Capital" Monday, January 7, 2008 at Rainbow Push Coalition's Annual Wall Street Project Economic Summit. The name is long but the heart of it is these smaller firms--many minority-owned--have the talent and knowledge to grow your money. Stacked up against S & P, according to Larry Jones, executive vice president for Northern Trust, the smallest firms' returns were 1.46 to 1.33 times higher. Joseph Haslip, assistant NYC comptroller for pensions, stated his office allocates millions of dollars into these emerging managing programs because of good returns.
Rather than search for business grants, search for a job, a business, or a fund manager. To learn what the feds offer to small businesses visit http://www.sba.gov/. If you reside in New York State, visit http://www.nylovessmallbiz.com/

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