Minneapolis: among the nation's best secrets - 6 Hot Cities for Black Business - includes related article on Mayor Sharon Sayles Belton

Black Enterprise, May, 1994 by Kimberly Taylor

Mention Minneapolis and people generally think of one thing: Cold. Prominent black entrepreneurs? They'll cite the musical eccentric best known as Prince and hit-making record producers Jimmy Jam and Terri Lewis. That's it.

This is particularly true when it comes to black business, "Minneapolis is one of the best-kept secrets in the country," says Mannie Jackson, senior vice president of marketing and administration at $6 billion Honeywell Inc., and owner of the Harlem Globetrotters. "There are so many employers here and such a strong economy, and now a black mayor--that's a very important step."

The election that put Sharon Sayles Belton into the Mayor's office in January was close, but it was no small victory in what remains a tolerant, but still race- and gender-conscious, community.

In this lake-laden city, African-Americans have been stepping along at a fairly impressive pace for some time. Yes, it's pretty frigid much of the year, but Minneapolis is a hot spot for black Americans wanting to move up the corporate ladder, or, to a lesser degree, to go out on their own. Distinguished by a phenomenal corporate base that boasts 13 Fortune 500 companies--18 statewide--Minneapolis has established itself as the business seat of the Twin Cities. That reputation has resulted in an African-American population that is predominately transplanted, highly educated and quite accomplished. In fact, Minneapolis has the highest number of black professionals per capita in the nation.

Globetrotters' owner Jackson is the former president of the Executive Leadership Council, a national group of black corporate leaders, and at any given moment he can tap into a local network of more than 100 black high-level managers and officers. This network includes Ron James, CEO of U S West Communications Minnesota; Y. Marc Belton, a vice president at food giant General Mills; and Linda B. Keene, vice president of marketing services at the Pillsbury Co.

Keene, one of four black VP's at Pillsbury, says that the downside of all this is that greater Minneapolis, which is only about 13% black, remains a largely homogeneous Scandinavian community. "[Black] people do a really good job of networking, but you walk out the door and you don't see a lot of folks."

That fact is one that makes life a bit tougher for African-American business owners. Michael J. Glapion, chairman of the Minnesota African-American Chamber of Commerce, says he's seen an erosion in contracting and services for minority businesses. While the state offers minority incentives with its Targeted Group Business and Targeted Vendor programs, blacks are having difficulty getting assistance, says Glapion.

Still, many black-owned companies, like the Cultural Exchange Corp., which grossed $850,000 last year selling Cultural Toys, have managed to prosper. "This is a unique environment," says Jacob Miles, president and CEO of Cultural Exchange. "For black entrepreneurs, it's almost like pioneer country. You have a lot of new money, versus old money and a lot of opportunity versus barriers."

Bill English, vice president of business ventures for Ceridian Inc. (formerly Control Data), where he has built a 27-year career, says Mayor Belton will only improve that environment.

"More and more younger people and corporate professionals who have hit the proverbial glass ceiling are catching the entrepreneurial spirit," English says. "I'm considering several entrepreneurial opportunities myself."

MAYOR SHARON SAYLES BELTON

Despite a decade of public service, Minneapolis Mayor Sharon Sayles Belton never became accustomed to being in the spotlight. Nor did she amass the controversial headlines or slick public personas of other politicians. During those 10 years--six as a city council member, four as council president--sayles Belton, 43, was becoming a consensus builder and a damned good listener. As such, she placed her finger on the pulse of the city and read its vital signs aptly enough to become its first African-American and first female mayor.

Sayles Belton ran on a platform that emphasized forestalling urban decay and strengthening the community. She plans to improve commuter life by building lightrail transit, and to convene a Minneapolis Business Roundtable to work on keeping businesses in the city and attracting more to it. To support neighborhood businesses, Belton envisions a Mayor's Regulatory Reform Advisory Council. Highest on her list is battling a 28% black unemployment rate.

What Sayles Belton will actually be able to accomplish, however, remains to be seen. He supporters are optimistic.. "Sharon is sort of a beacon for us, a role model, a reconfirmation to the general populace4 and political leaders that African-Americans can do business and can be supported by the white community to everyone's benefit," says Jacob Mile,s head of the cultural Exchange Corp.

But others are not so sure that any black major can make much of an impact, even in staunchly liberal city such as Minneapolis. Many observers say that if Sayles Belton is to be an effective politician, she cannot afford to emphasize the needs of the black community too much. Michael Glapion, board chairman of the African-American Chamber of Commerce, says there are more powerful constituencies to appease. It's his belief that white women and the city's strong gay and lesbian populations will fare better under the Sayles Belton administration than blacks. Only time will tell.