Global Impact: Africans Ought to Style Up!
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| Africans: a consumer lot or producer lot? |
African-Americans have the largest numbers of PhD holders, just like Nigerians do among Africans. Well, look at the output of the two groups. Mrs Corletta King once noted of Nigeria that if Nigeria’s leadership is a representation of what black people all over the world should aspire, then there is not much to look forward to and hope for. The black race is dashed.
We blame others for what we refuse to do for ourselves and run around reminding people of the degrees we have. Until we nurture and entrench the desire to be self-sustaining and show willingness to compete and deploy all resources to enhance our collective existence, what is will remain.
In 2005, I spoke to a group of African fresh mint college graduates in Dallas. I posed the following question: “If your family business offered you a job that pays say $30,000 and a corporation offers you one that pays $40,000, which one would you choose?” Many chose the latter – $40,000. I asked same question to a group of Asians, Hispanics and Anglos, in another setting. The outcome showed that many Asians would work in the family business. A majority of Hispanics leaned on family business while half of the Anglos said they would work in a family business while the rest opted for the corporation.
What did I get out of this unscientific survey? Africans and Africans-Americans are willing to give their labor and human resources to another entity than nurture their own. In the factors of production, the most critical factor when all things are considered and equal is labor. When we are not ready to invest in our own enterprises but want others to pay us salary and wage, we carry around title on a job, we must be willing to take a number and pray for our turn getting a job.
In December 1989, after 4 years living in US, I went home and visited my family in Nigeria. As I was going home, I felt good because in less than 4 years in US, I was heading the real estate appraisal department for liquidation of failed financial institutions assets of savings and loans and banks, under US FDIC as Receiver for central regional office based in Dallas, that covered 8 years. It was a visible position that saw me invited to testify in a subcommittee of US House of Representatives banking committee chaired then by the late San Antonio Democrat Henry B Gonzales. My role caught the attention of Houston Democrat Congressman, the late Micky Leland. He wrote me a letter and promised to visit with me when he returned.
At home, my dad was not surprised by what I was doing in a short time. When I was getting ready to return to US in January 1990, my dad told me that we needed to talk. What he said to me during the talk blew me away. “Son,” he said. “I hope you did not go to US to become a civil servant. If that is the goal, you should stay back in Nigeria and do all that.Get out and challenge yourself. If you fail, learn why and maybe go get a job.”
That did it. I went back to Dallas and resigned from the position after six months, never to look back. In my 28 years in US, I have worked for myself for 23 years. I have taken charge of my life and I am navigating the landmines while looking for goldmines.
While all of us will never end up owning a business or working for ourselves, the alternative is to develop relationships and an attitude necessary for corporate America. Degrees are good to have, but remaining a resource to one’s employer is beyond degrees. There is life after college that calls on one to deploy all senses in order to remain effective. What those senses are, are not cast in stone. It is like the biology Amoeba and chameleon, learn to adopt winning shape and having changing colors that suits an environment.
Be endowed in many senses and learn how to project leadership and build relationships across lines. A beggar, they say, has no choice. If that is the case, looking for a job in other’s backyard is tantamount to begging. Since pastors, preachers and prophets are of big influence in black the community, maybe the sermon every Sunday should be how to do the human things – create jobs and not asking for tithes. If the people are gainfully employed, giving will follow. Instead of having huge but dead edifices, assets that do not contribute to the economic wellbeing such as improving the tax base, why not do smaller ones and use the other resources to create an economic engine?
Here is a suggestion on how to stretch the dollar in black America. Let’s say a community wants to build a $30m church and the church members are willing to raise the money. Let’s say the church through austerity measures and recognition that in economics money attracts itself, decide to parcel the resources for the greatest impact. A simple scenario like this example will produce bigger bang for the community.
Church Building – $7m. Charter a community bank, $300,000 for the paperwork altogether $5m, initial deposit and each church member is assigned a shareholder position, to hold such position for no less than 5 years.
$10m in a retail center, say 100,000 square feet. With gross sales projection of $1,000 per square foot of shopping floor, the center has a potential annual sales volume of $100,000,000.
Assuming in Texas, the annual sales tax revenue at 8.25% yields $8,250,000, excluding nearly $300,000 in property taxes. This revenue when leveraged since sales tax is zip code sensitive, a portion of sales tax is reinvested in the community for improvements – TIF, Tax Increment Financing and other developments. There is employment base as the dollar is recycled.
A small business office that encourages business development 40,000 square feet for $4m.
For $26m, the community would have registered a strong presence in their area with ownership and influence over what happens in their zip code. There is still $4m, left. The balance is set aside as a hedge fund or enterprise fund at a safe rate earmarked for economic development projects designated for the zip code.
Given the nature of money and its perennial love to attract itself, the $4m becomes a magnet to swell its coffers. If say in their enterprise fund, the church leadership decides that members who have proven business skills are underwritten for initial investment to the tune of say no more than $25,000 each project and the fund is managed by tested and proven managers, with $1m as initial subscription.
There is likelihood of 40 enterprising projects coming out of the fund. Assuming each enterprise produces 2-4 jobs, there is a potential of at least 100 jobs. Note in US, most small businesses are handicapped because of that initial capital to get started and often many started with less than $25,000. The remaining $3m, is a cushion to handle fluctuations in the economy and positioned to attract more resources. With such position, the activities are such depending on the structure created, the church activities are funded through the money working for them. Later, if a mega church is needed to show we have arrived, then they can splash.
It makes more sense to diversify the portfolio with various asset classes than put it all in a feel good project that constantly expects the people to feed and support it. A $30m resource can change the direction of a community if properly laid out and pursued. Giving a church is fine but if majority that give earn less than $30,000 and the church is no player in landing them a well-paying job, it is not prudent.
Therefore, Africans must stop WHINING and become a WINNING race, by competing and doing the heavy lifting. Economics 101, has what is called Opportunity Cost and Scale of Preference models used to test desires and one’s willingness to change their destiny.
Opportunity Cost teaches what one is willing to give up for what they expect, need and want. While Scale of Preference preaches putting things in order so one can assign values and pursue them with alacrity for better outcome. These two factors must be aligned and sustained for a community to remain viable and vigilant.
If we are not willing to own something and remain competitive, we will see others as obstacles. A lazy farmer always has issues with any weather. God created us equal but in the case of Animal Farm, all animals are created equal but some are more equal than others. Those who ‘are more equal than others’ are those referred to in the Bible in the parable of the Talents. The master in the parable loved all the three servants but showed more preference to the servant who invested and garnered more profit. We must put our endowments to good and profitable use.
My mom used to remind me, that if I begged for things she knew I was capable of doing, she she would cut off my hands. A snake she says, does not have hands or legs, but guess what, it moves and fast too.
I sympathize with anyone who has suffered discrimination and racism, but I have no way to cure the ills of society except encourage them that when a door is closed, another may very well be waiting to be opened. Get out there and prove oneself. If African-Americans are not even ready to own and operate convenience stores in their communities, but want suit and tie jobs, which they create little of, then whatever we get we get.
Ejike E. Okpa II
Dallas, Texas.