Creating a new business agenda

Black Enterprise, Jan, 1996 by Rhonda Reynolds

Atlantic-Pacific's Michael Clark is on various councils that work closely with SBA directors, congressional representatives and President Clinton himself. Clark's legion represents several hundred thousand business owners. The group is not formally named since the 2,000 regional delegates who attended the White House Conference on Small Business were representing their respective states, and in turn, their constituents.

Reclassification of what constitutes a small business finished 80th among the 200 major recommendations presented by the delegation. Taxes, burdensome regulatory paperwork, international trade and health care issues snagged the majority of the top slots.

BE CAREFUL WHAT YOU ASK FOR

Although NASE's Bennie Thayer isn't backing the micro status, he contends that 99% of all businesses in America are categorized as "small." Unwittingly, NASE, whose membership is made up of mostly micro business owners, posts a strong case for the micro business status. Thayer, however, contends that "if affirmative action is dismantled, none of us will be able to compete. So it won't matter what we're called."

Over the last few months, there's been a lot of talk--and even more whispering--but entrepreneurs are still not sure how to hedge their bets. Everyone knows that something must be done to create a balance and ensure that African Americans continue to compete in the ever-evolving marketplace. But there's no widespread agreement on how this should be done.

Perhaps Babette Peyton best represents the opposing side in the black business community, the side that's tired of begging or battling for its just due. "Of course we need more government attention. Obviously, we need access to loans, but I don't want another stigma to get it," says the president and CEO of Peyton Elevator Co., a $500,000 elevator and escalator design, build and repair firm based in Chicago.

Although her firm's sales don't even top $1 million, Peyton still shies away from the micro status concept. She's quick to note that there are companies serving as minority fronts that steal contracts from "real, legitimate [black-owned] small businesses."

Despite citing case upon case of white males boasting their "ownership" of minority companies and getting free rides, Peyton still can't support a micro business standpoint. Regardless of how many categories are created to aid minorities, she says, "The good ole boys will seduce some minority front companies and keep getting over."

The jury is still out on whether the SBA or the Clinton administration will even consider the idea of redefining small businesses. At least when it comes to lending, the SBA's micro loan programs (loans for less than $50,000) do recognize very small enterprises.

Stumped for the right solution. Peyton reflects back upon her wallflower days when she leaned against the Hilton's hallowed walls as a delegate at the 1985 White House Conference on Small Business.

The first inklings of forming a smaller business category were discussed then as a preventive measure for African Americans to be less dependent on race-conscious business aid.