Black Unemployment

In October 2017, the overall unemployment rate for white Americans was 3.3%, but the overall unemployment rate for black Americans was 7.5%.[1]  In other words, the unemployment rate for black Americans in October 2017 was 2.27 times higher than the white unemployment rate. This twice-as-high unemployment rate for is typical for African Americans.

Regarding black men 30 and over, the unemployment rate was 7.5% in October 2017, whereas it was only 3% for white men.[2] Hence, this twice-as-high unemployment rate typically applies to black men.  The unemployment rate for black men in the inner city is even higher than twice-as-high.

We must address this persistent twice-as-high unemployment rate phenomenon for African Americans.  And the answer is not begging and pleading whites to bring jobs to our neighborhoods.  We must start our own companies and develop jobs for ourselves.

The Data

Many African Americans are already starting new businesses.  There were 996,248 minority-owned businesses in the United States in 2015 according to the U.S. Census Bureau’s 2015 Annual Survey of Entrepreneurs,  African American owned 113,643 (11.4%) minority-owned firms and they generated $99,263,737 in gross income and employed just over one million people.  Asians owned 530,406 minority-owned businesses, and they generated $652,430,883 in total revenue and employed 4,132,531 people.  See Table 1 below.

No of Businesses Sales, receipts, or value of shipments No. of Paid Employees
No. of Minority Owned Firms 996,248 1,168,470,888 8,046,996
African American 113,643 99,263,737 1,003,147
Asian American 530,406 652,430,883 4,132,531
American Indian 27,585 32,896,389 201,923

Table 1

The engine that keeps the American economy moving is the 28 million small businesses. Small businesses employ most of the employed people in America.  For this reason, African Americans must start much more small businesses because the benefits impact them personally and collectively.

We can become self-sufficient and significantly less dependent on other racial groups through business ownership.  Entrepreneurship can help provide groceries, banks, car dealerships, clothes, beauty supplies and so one for our own community. It is shameful that the only businesses we own are barber shops, beauty shops, funeral homes, and a few others but must depend on other racial groups for everything else, like children.

How the CEO Program Was Birthed

We have developed a program to increase the number of black entrepreneurs and more black businesses startups.  We call it the CEO Program.  The acronym CEO stands for Creating Economic Opportunities for yourself and your community.  The mission of the CEO is to spur entrepreneurship and business ownership in the black community.

Our founder, Augustus Corbett, thought of the CEO program after a client of his experienced great difficulty finding a job because of his felony record.  The difficulties this young man experienced finding employment are common for young black men with felony records. Mr. Corbett told him to stop begging for a job and create economic opportunities for himself.  The young man eyes’ lit up with excitement and the CEO Program was born.

Turning the CEO idea into a viable and scalable program requires funding; hence, we are grant writing.  Our goal is to secure financing and start our first class on January 6, 2018.  The class will last 8-weeks and teach enrollees how to:

  • Write business plans;
  • Incorporate a business;
  • Secure EIN and Duns Number;
  • Understand basics business taxation;
  • Market and develop their brand;
  • Hire and terminate employees;
  • Avoid legal troubles for businesses
  • Secure business loans;
  • Pick a location;
  • Much More.

To be considered for the class a person must complete our online application and be approved.  The application will be available by December 15, 2017.  However, you can register now, and we will notify you when the application is available.  There are limited seats so register quickly.

[1] https://www.bls.gov/news.release/empsit.t02.htm

[2] Id.