According to the Federal Reserve’s 2022 Survey of Consumer Finances, the latest snapshot of changes in household income, net worth assets, and other metrics for Americans, the largest rise for Blacks came from entrepreneurship. The number of Black families that reported owning a business climbed to 11% in 2022, doubling from 4.8% in 2019.
Sweetie Pie’s, St. Louis
Robbie Montgomery and son Tim Norman
Sassy “Miss Robbie,” a former backup singer for Ike and Tina Turner, started the soul food restaurant that is featured on the OWN network reality TV show Welcome to Sweetie Pie’s. Her son and business partner, Tim, manages one of the two St. Louis restaurants, which also employ several other family members. A third location opened in North Hollywood, Calif. in 2015.
Johnson Publishing Company, Chicago
John Johnson and daughter Linda Johnson Rice
Arkansas native John Johnson and his wife, Eunice, started the publishing and cosmetics empire in 1942 with $500 borrowed against his mother’s home furnishings. The company, now run by daughter Linda, includes Ebony and Jet magazines and Fashion Fair Cosmetics. John Johnson died in 2005.
Esterlina Vineyards & Winery, Mendocino County, Calif.
Murio Sterling and sons Eric, Chris, Steve and Craig
The Sterlings farmed for three generations before entering the wine business in 2000. Eric, a physician, is the company's winemaker. Craig, an attorney, manages the tasting room. Chris is the vineyard manager, and Steve heads marketing and sales. The family also owns Everett Ridge Winery in Sonoma County.
Earl G. Graves Ltd., New York
Earl G. Graves Sr., and sons Earl Jr., John and Michael
The senior business magnate is chairman of the communications company he started in 1968. It includes Earl G. Graves Publishing Co., which publishes Black Enterprise, a magazine targeting African American businesspeople. The company also organizes events for black entrepreneurs and professionals. Graves’ oldest son, Earl Jr., serves as CEO; younger sons John and Michael also work in the family businesses.
McDonald’s, Los Angeles Area
Patricia Williams and daughter Nicole Enearu
Owner-operator Patricia Williams and her former husband bought their first McDonald’s restaurant in 1984. After successfully turning around that one financially, they were offered a brand-new restaurant in the franchise. Williams now owns more than a dozen McDonald’s in the L.A. area with daughter Nicole, a former social worker, and oversees operations for most of them.
Sylvia’s, Harlem, N.Y.
Sylvia Woods and children Van, Bedelia, Kenneth and Crizette
In 1962, Woods, later known as the “Queen of Soul Food,” bought the small luncheonette where she worked as a waitress. The restaurant has since expanded into several businesses, including a catering hall, a nationwide line of Sylvia’s food products and a real estate firm. The enterprise is now in the hands of three generations of the family. Woods died in 2012.
Radio One, Washington, D.C.
Cathy Hughes and son Alfred C. Liggins III
In 1980, Hughes and her then-husband bought a Washington radio station, which she turned into a broadcast empire of 53 urban stations in 16 markets. As CEO, her son, Alfred, expanded the multimillion-dollar company into television with TV One, a national cable and satellite television network.
Stewart & Calhoun Funeral Home, Akron, Ohio
James Stewart and son Preston, William Calhoun and son Byron
Founders James Stewart and William Calhoun, along with Lehman Black, started the funeral home in 1963, aiming to make it a first-class African American operation. Sons Preston and Byron later followed in their fathers’ footsteps and help run the business today. Stewart died in 2011.
Source Booksellers, Detroit
Janet Jones and daughter Alyson
Janet, a retired schoolteacher, started selling books at a church bazaar and founded the independent bookstore in 1988. It has become a community hub for nonfiction, with topics ranging from world history to spirituality. Alyson is her right-hand woman and tech whiz, encouraging the use of social media and the computer to promote and run the business.
Martha Lou’s Kitchen, Charleston, S.C.
Martha Lou Gadsden and daughter Debra
Gadsden, 85, opened her modest, bright pink restaurant in an old gas station in 1983, and has been serving up Low Country cuisine ever since. The mother of nine is still cooking with the help of her family. Daughter Debra serves as the hostess at this local institution, which has been featured on the Travel Channel and Food Network and in the New York Times.
Succession for black owned businesses
Through entrepreneurship, many Black families have leveraged business ownership to build wealth, legacy and give back to their communities.
Prominent family-run companies like legacy brands Radio One, Black Enterprise and Sweetie Pie’s have earned millions, providing jobs to family members who take on leadership roles and manage the business, as well as jobs for thousands of Black employees.
But despite the opportunities family-owned and operated businesses have for long-term success, a 2019 report from the Family Business Alliance revealed fewer than 30 percent of said businesses reach third generation family ownership.
“A lot of business owners are great at running their business but get caught up in the day to day of management. I meet business owners that say they will get to their personal stuff but never do and think they can wait until their mid-to-late 50s and 60s but by then it’s too late ,” Jonathan Hodge, Financial Advisor, Senior Portfolio Manager and Certified Exit Planning Advisor at UBS Global Wealth Management, told The Plug.
While a variety of factors come into play as to why family-owned businesses don’t always make it to the next generation. When it comes to Black businesses and the opportunity for wealth creation, Hodge believes early succession planning and communication is important.
Reference
Comments