Detroit Named A Hub For Black-Owned Businesses

Carla Walker-Miller has changed her business model and reduced her work force. What has remained constant through that movement and the economic storms: Her commitment to be in Detroit. “Detroit is hard, but it’s rewarding,” she said.



It also is the city with the highest percentage of Black-owned businesses in the country, according to new Census Bureau statistics. Nearly two-thirds (64.2 percent) of all the businesses in Detroit were owned by Blacks.


The Motor City was home to 32,490 Black-owned businesses in 2007. New York had the largest number of Black-owned businesses, but in concentration and total numbers, Detroit was ahead of other predominantly Black cities like Atlanta and Washington, D.C.


Highest concentration of


Black-owned businesses


2007 totals — percent of


total businesses in cities


Detroit.................64.2


Baltimore.............34.6


Memphis..............38.1


Atlanta................30.9


Washington, D.C...28.4


Cleveland.............26.5


Chicago................22.9


Milwaukee............22.3


Philadelphia..........22.5


Charlotte..............17.8


One reason is that Detroit’s economy has been harsher, with fewer new jobs and opportunities than most metropolitan areas. Its jobless rate has consistently been among the highest in the nation. So in tough times, the entrepreneurial spirit comes out.


Another reason: “There is a loyalty in the African-American population of Detroit,” said William Volz, a Wayne State University professor of business law who has helped many launch small businesses for more than 20 years. He thinks that’s partly a legacy of five-term Detroit Mayor Coleman Young, who encouraged African-Americans’ identification with the city.


“People are looking around where they live, at school, at home, and they see the opportunities,” Volz said, who oversees the Blackstone LaunchPad, an entrepreneur assistance program at Wayne State.


Black companies in Detroit have some advantages: The major automakers have been ambitious in minority-contractor programs and the city also has a minority-vendor program.


Johnny Cannon partners with other African-Americans — including his wife, Chamika — on his three businesses in Detroit. The couple own the New Center Eatery, a chicken and waffles breakfast and lunch place that’s near the state office building and some hospitals. With other partners, he co-owns a linen and table covers rentals business and a catering company that supplies lunches to around 5,000 students at charter schools.


“Detroit is a very creative town, always has been,” Cannon said.


The number of Black businesses in Detroit grew by 66 percent from 2002 to 2007, but their revenue growth lagged far behind the national numbers. This could indicate people creating part-time jobs for themselves; after all, 90 percent of Black businesses nationwide have no employees outside of the owners.


Walker-Miller started her business, Walker-Miller Energy, in 2000, eager to show the world that an ethical approach and a Black woman could succeed.


Initially she sold electrical equipment used by utilities, but switched into commercial and residential energy audits and conservation in 2008 as the utilities cut back and the economy faltered. She and her small team spent two years retooling and trying to develop the business’ reputation. She had to lay off some people, but kept three staffers.

“I discovered I am ridiculously loyal, loyal to a fault,” she said, whether to those key employees or to her adopted hometown of Detroit. “I’ve never considered moving outside Detroit,” she said.