Texas: they say everything is bigger in Texas, but is this true about opportunities for African-Americans in the state's largest cities?

Black Enterprise, June, 1994 by Lloyd Gite

CITY OF OPPORTUNITY

One African-American entrepreneur who has broken through the clubhouse mentality now regards Houston as a "mecca." In 1990, Earl Thomas formed Gold Line Refining Ltd., an oil refinery company with offices in Houston and Lake Charles, La. "The business climate in Houston is tough, but I think it's fair," says CEO Thomas, 45, whose BE 100s firm pulled in more than $108 million in 1993. "If you've got something to sell, there's a market for it. Yes, we're involved in a good old boy network and unless somebody gives you a shot, it's not going to work. NationsBank gave me a break with a line of credit that helped me grow my business. I've always looked at Houston as a city of opportunity."

Last year, of the $572 million in construction, purchasing and professional service contracts awarded to area businesses, more than $88.3 million of that went to minority- and women-owned and disadvantaged businesses. Ten years ago, only $2.5 million in contracts went to minorities and women.

City leaders like Kenneth L. Lay recognize that still more needs to be done to bring African-American business owners into the economic mainstream. Chairman and CEO of the multimillion dollar energy giant Enron Corp., Lay is the 1994 chairman of the Greater Houston Partnership, an organization committed to business opportunity and economic prosperity in Houston. Recently, in addressing the issue of black economic development, he said, "I would like to see the Partnership play a much more proactive role in stimulating the creation and growth of minority-owned and minority-managed businesses."

A white executive considered to be one of the most powerful men in the city, Lay has made an appeal to large companies to do their share in helping black businesses grow stronger. "I'd like to see each major employer in our community, public and private, establish a mentor relationship with at least one significant and successful minority enterprise," he said. "That means providing help on strategic and financial planning to assisting in opening doors for the sale of goods or services to other major businesses in our community."

Taking up his own challenge, Ken Lay already has agreed to hear investment managers Gerald Smith and Ladell Graham pitch their firm to do business with the giant energy company.

As in Dallas, the amenities of life available in Houston make the city a highly desirable place for African-Americans, not only to build their businesses and career, but also to raise their families.

Even during the boom years, housing was relatively inexpensive and it remains so. In 1992, the average price for a new home with 1,800 sq. ft. on an 8,000-sq.-ft. lot was $92,736. Starter homes range from $60,000 to $90,000. The monthly rent for a two-bedroom, 950-sq.-ft. apartment averages $566.

"Houston is one of the better places in the entire U.S. to live," says Paine Webber's Sarah Freddie. "A single person on an income of about $35,000 can live very comfortably here."

The city school system, with close to 195,000 students, is one of the largest in the United States, yet funding for Texas public school students is one of the nation's smallest, at $3,424 per pupil. The Houston Independent School District recently hired its first African-American superintendent, Dr. Rod Paige, to run the predominately minority school system.