Tag Archives: Group economics

Black and Franchising

Often, along with gentrification there can be regeneration which was discussed in another blog I wrote. With this comes the ability to get finances and support to open businesses and to become economically, socially and politically visible.

Franchises are a way in which you can create a business income, which can lead to a growth in employment in the local area. In the UK there are a number of businesses which are franchises which black people go to such as Chicken cottage, Subway and Costa coffee. The latter is one which is sometimes visited by black people.

In the US I am sure there are many different types of franchises which you could open in the local area as a way to get your first business. Other groups of people are able to open these franchises with the assistance of their fellow nationals (by grouping their resources together).

This is a way in which you can take advantage of local regeneration as new buildings are being built and possibly office and residential blocks, with some shops and services needed in the local area. If you know the type of business’s franchises you would like to buy into then why not.

The way you can get finance is possible through grants, loans and different schemes and often, finance can be more easier to secure for a franchise than for a independent business but you would need to have start up capital and collateral, which is where the group comes in (group economics).

If you are interested in a franchise then there are many things to consider such as:

  • Long term contract
  • Run the business in a uniform way set by the brand not you
  • Devoting all your time to it
  • Having some capital as collateral and start up cash and more

 

Further Resources

10 Franchise Considerations (www.entrepreneur.com) 

Costs of a Franchise (www.franchising.com)

Introduction to Franchising (www.startup.co.uk)

11 Steps to Franchising (www.franchisedirect.com)

Starting a Franchise (www.fitsmallbusiness.com)

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Crowd – Gifting

There has been much emphasis on crowdfunding though there should be a view point towards people crowd gifting. I will explain further, suppose people were to donate items to persons who are seeking funds to raise for a venture.

This would occur by providing them with items which you do not want and listing through Ebay or a second hand selling site, you would then be able to take the proceeds from the sale after the item has been sold.

This would mean you could donate to a campaign if you did not have the funds by selling an item and pledging the proceeds to the campaign.

My viewpoint came from my experiences of giving to charities in the UK, where I often donate books and DVD etc to charity shops as I just cannot be bothered to sell them online and besides some of the smaller charities do some good work and I am very supportive of local charities who do good community work, I also buy many books and redonate them once I have finished.

There are online services online which can allow you to donate items and they will take the proceeds and pass them on to the charity/thrift organisation you would want the items to go to.

As stated above there are other ways in which you can ensure your funds go to another party, this could be through arranging with the individual or group recieving the funds that you will pledge the value of the item if it is sold.

There are things which can be looked at to see how and if it can work, at least it is something to think about.

Considerations:

  • Whether or not an agreement can be made to accept donations in this manner.
  • The items donated for sale may not sell.
  • To get the funds will require much effort as going to a charity/thrift shop as you will need to post and package the item to the sellar.
  • Unknown value of the item until sold.
  • Difficult to get a standard price of all items as most venutres will be for business, rather than charitable.

The Benefit:

  • More donations as many people will have items to sell.
  • Very Accessible to those with little funds but many items
  • Pledges do not have to be made until the item is sold and the value from that item gained.
  • More access to others who might have a passing interest rather than a full interest.
  • Takes dedication and interest in the campaign and the projects of the person/group asking for the donation.
  • This could be a way of asking businesses and organisations if they have any old stock which they can donate to sell for the cause/project you have.

Further information:

Selling for Charity (Ebay)

Audio And Visual Plugging

Remembering back to the late 80’s and the early 90’s when
I would listen to pirate radio stations which would play
reggae and black music. These were ways in which black
people could play their music on the UK as the costs to
get a radio mast would be huge and for a Licence to play
songs this would be large too.

The radio stations still exist (on Analogue radio and as
internet radio stations) today in towns and cities across
the UK with a Afrocaibbean population. This is because we
originally created them to play our songs and music,
which would not be played on mainstream radio. Despite
them being illegal, many reggae artists do shout outs to
these radio stations, as they are channels which can be used to
bring more awareness of their music and songs.

The thing which these radio stations did which many of
the black people who talk about enlighted matters dont do
is promote local black owned businesses. As a kid when
recording these stations annoyance would set in as the
adverts would play but as a more enlightened adult I like
and understand the need for these adverts.

This links into the point of view that the enlightened
persons who provide information for black people should
have adverts on their audio and video posts for
businesses which are local or regional to them and some
of their following.

This will be useful to those with a large following and
the advertising would be for businesses which are
relevant to the demographic of the audience. On pirate
radio local black businesses advertise and you begin to
find out which businesses exist in that town or city and
also what events are going on locally and regionally.

As well as being able to provide opinions and information
you may also provide information on local businesses on
your videos and radio shows. The finer details in terms
of economic details for both parties are to be discussed
between yourselves.

Local Community Sponsorship and Business Growth

Recently, I have been working with a black local community organisation and they are sponsored by a black themed business which is not owned by black people.

Initially I thought this was a bad idea but it made me realise that there are very few businesses in the UK, which have established themselves to a point where they can provide a great amount of funding to such a prevalent cause which affects black people in the UK.

It is a case of black people in the UK looking at themselves especially those who have run or are running businesses. I myself will look to be accountable to this also. If we build a business we should be able to generate income over a number of years to be able to expand into a chain which this business is and make it applicable to different audiences.

Even in the case of black companies making a great amount, very few will likely put their tax breaks or donate some finances to causes such as this one as they are worried of being too black or too affiliated with a cause that affects their own people. Some black businesses may not be interested in funding a community cause unless it is a international or universal cause.

In the UK black people have been here anything between 70 and 40 years and we should be looking at having chains of shops and services, rather than having small businesses which cannot support community needs.

If we are to develop stronger businesses amongst our smaller communities in the UK, we can look at different creating networks of businesses and liaise with community groups and organisations on how they can work together in a partnership where both parties get something out of the agreement.

This will mean organisations like the one I am currently working with will be self-sufficient and will be able to remain exclusively black rather than relying totally on public funding and can do what they set out to do with businesses having a similar ideology supporting and providing resources to make this happen.

Social Economics

You may have heard much talk about creating your own economy. In Africa, even today, we have an economy based on the exchange of goods in rural and some town areas. Rather than the exchange of goods for money.

The most popular version of this is the exchange of a wife for a douri, i.e. where a man would give 10 or more cows or livestock in exchange for a mans daughter. This is designed to show respect and demonstrate your intentions for their daughter.

After being in South Africa, I learnt this was for the man to show the father of the bride to see how the man has nurtured and maintained the live stock as these qualities are required to take care of his daughter.

In regards to markets and trading traditionally, we (as Africans) have not always used coins in exchange for goods. It has been items in exchange for items and if we do not have a item which is the exact price of the item then we negotiate i.e barter to get a price which both parties will settle for.

There has been talk of black people, especially in America taking up this type of economy for items as some whites are beginning to do this. Looking from a UK example there has been attempts to do this but there is a downside.

This being mainly middle class and affluent people who have the security of money to do this can do it, whilst bills and utilities cannot be p0aid for with batering or through a social economy – reciprication.

There is also the possibility of developing a underground market where people can be exploited so someone will exchange labour or favours for goods and there will be no definate time or point where this will be repaid.

Despite these reservations a social economy could work but it would be more beneficial in Africa where we belong rather than in the west as, we do not have the infrastructure to fully take advantage of such a economy in the US or where ever black people are outside of Africa.

(Image Source:

https://jaunehibiscus.wordpress.com/2010/06/29/african-print-and-pagne-cheap-or-cheap/)