dawn of a new era.

THERE IS NO DENYING THAT A MOVEMENT IS AFOOT. ACCORDING TO AIDA ALVAREZ, administrator of the U.S. Small Business Administration, 1 million new businesses start up each year. One statistic indicates that a new business is started every 11 seconds. This growth, says Alvarez, is due, in part, to favorable economic factors, such as more than 100 months of economic growth, the lowest unemployment rate in 29 years, and more than 20 million net new jobs.

According to Cahner's In-Stat group, one-fifth of all U,S. small businesses experienced growth of 20% or more during the mid-to-late 1990s. By 2002, 300,000 new small businesses will have been started, bringing the total to 2.06 million. Very small businesses with five to nine employees will grow from 1.15 million to 1.26 million in 2002, accounting for about 50% of small businesses.

In record numbers, African American men and women are leaving their own shingle--whether it's at their kitchen table or a high-rise African American-owned businesses, which produced $59.3 billion in revenues in 1997 and employed 580,000 workers.

Industry sectors that present opportunities for black businesses include technology, such as software development, dotcoms and Website development, as well as the manufacture of household and business products, construction and human resource labor, says John F. Robinson, president and CEO of the National Minority Business Council Inc, in New York.

For 30 years, BLACK ENTERPRISE has chronicled the emergence and growth of black businesses, celebrated their successes and lamented their failures. In this article, we prescribe an action plan that will enable you to forge ahead into the next 30 years and beyond. Truly, in order to survive and thrive in this millennium, black businesses must develop financial plans to remain viable and. grow, use technology to the fullest advantage, participate in the global economy, and be advocates of the preservation and creation of black wealth through entrepreneurship.

* USE TECHNOLOGY TO EMBRACE BUSINESS-TO-BUSINESS OPPORTUNITIES. Not many would argue that the Internet is the important development of the early 21st century. And no other technological innovation will play as great a role in shaping the future development of our society.

The New Economy is characterized by low inflation, low unemployment, increasing productivity, and higher growth rates than previously thought possible. Also add a technology-enabled business model. Businesses of all sizes want to exploit the advantages of e-commerce. It is estimated that business-to-business e-commerce will jump to $1.3 trillion by 2003 from $43 billion in 1998.

"Black businesses must be prepared to join the high-technology arena and be prepared to communicate with anyone and everyone through e-mail, the Internet, and other means," says Harry C. Alford, president and CEO of the National Black Chamber of Commerce in Washington, D.C., which is hosting a conference in August, "E-Power to the People," devoted to the topic of e-commerce.

According to Bennie L. Thayer, president and CEO of the National Association for the Self-Employed in Washington, D.C., "Those who want to complete have to look at how to market their products and services via the Internet. They should have a physical shop and e-commerce. The Internet will become Main Street, where people will shop and buy more and more."

* POSITION YOUR BUSINESS TO ATTRACT CAPITAL. A key ingredient of the formula for entrepreneurial success is having funds to build your business. That won't change, even in a new millennium. As a whole, black businesses haven't participated in this country's prolonged economic growth because of lack of access to capital and lack of exposure to and knowledge of strategic alternatives for funding growth, such as angel investors, private placements, and initial public offerings.

According to a report by the Milken Institute, demand for capital in the minority business community is estimated to be in excess of $144 billion per year. Furthermore, there will be increasing capital demand over the next 20 years given the steady growth of minority businesses and the minority population.

"Growth can kill a business," says Alford. "As businesses grow, they must find better credit arrangements to meet cash demands, such as hiring more employees or equipment purchases. Capital is the lifeblood of any business."

Despite the significant growth of minority-owned businesses, the amount of venture capital (and the number of investment funds) that are operated by or targeted to black businesses is inadequate. Of the estimated $85 billion in investment funds allocated to private equity capital, only $1 billion to $2 billion is managed by minority-owned firms and/or targeted to minority businesses.

That said, there is money out there. But whether you get any will depend on whether you have to chase it or you can position your that it comes looking for sure your business a "dream/team" model used by many venture capitalists. Is your "dream," or business model, viable? What can you offer a potential financing source as proof (for example, customer surveys, market research, competitive analysis, increasing sales, etc.) of this? How strong is your team--the people you have assembled to execute the idea? Do you, your partners, and key managers have the industry knowledge, training, experience, and management skills to make the dream come true? You must be able to clearly demonstrate the viability of your business concept and the people who will execute it in your business plan, your financial records, and through the quality of your operation if you are to compete for the capital you need to keep your company growing.

* FORM ENTREPRENEURIAL RAINBOW COALITIONS. Don't overlook the potential of the fast-growing Hispanic and Asian communities. Understanding diversity beyond just black and white can open up opportunities to establish partnerships and strategic alliances, as well as find new markets for your products and services.

One example of a successful, multiethnic business alliance is Don Coleman Advertising's strategic relationship with True North Communications in the formation of the New America Strategies Group. This advertising agency alliance includes Siboney USA, a leading Hispanic agency; Imada Wong Communications Group, which focuses on Asian consumers; and the African American agency Stedman Graham & Partners. DCA CEO Don Coleman, who sold 49% of his agency to True North last year (see "Coleman Partners With True North," Newspoints, December 1999), heads the New America Strategies Group. The relationship has already paid dividends for DCA, No. 2 on the BE ADVERTISING AGENCIES list with $202 million in billings last year: in March, DCA became the first African American agency to win a major airline account when it landed American Airlines, the nation's second largest carrier.

"In the future, more businesses will be women-owned, Hispanic-owned, and African American-owned--everybody accepts the fact that minorities will be the majority by 2050," says Thayer. "Until minority groups work in tandem with each other and learn to work together, majority America will still control the economic power in our society."

* SEEK OUT OPPORTUNITIES IN THE GLOBAL MARKETPLACE. Despite gains in African American entrepreneurship, black businesses are still lagging behind in international trade. Only 0.8% of black firms participate in international trade compared with 1.8% of all other firms, yet nearly 96% of the market is outside the U.S., according to the SBA Office of Advocacy. The NMBC's Robinson says if blackbusinesses don't have a global strategy now, they won't be doing business in 10 to 15 years.

Taking advantage of global opportunities doesn't necessarily mean trying to open up a branch office in a foreign land, which would be far too costly a proposition for most small enterpises. But you could find new customers or distributors, lower-priced raw materials and supplies, or establish entreprenuers in other countries who want access to the U.S. market. And thanks to e-commerce, many of these relationships can be maintained without you having to pile up frequent-flier miles.

There is another reason business owners must be focused on the global marketplace: the flip side of opportunity is competition--for your existing customers, untapped markets, raw materials, even skilled labor. This competition can now come not just from across town, but from the other side of the world. Those who are not globally aware could find their market share pulled out from under them.

"Getting into global business activity today is much easier than it was 10 to 15 years ago," says Robinson. "A lot of exploratory work can be done on the Internet by e-mailing potential customers, setting up e-commerce accounts for sales and shipping, and constructing a Website to gauge interest in your product or service."

* USE POLITICAL ACTIVISM TO FURTHER YOUR BUSINESS OBJECTIVES. Advocate for small business issues and back political candidates who support you as an entrepreneur. "Black businesses don't understand the political process and the economic impact it has on them," says Alford. "They must have the attitude `Am I going to be a political advocate or a political victim?'"

To ensure that your entrepreneurial concerns are addressed, whether they be banking, taxation, access to government contracts, or regulatory issues, it is vital that small business owners take an active role in the political process and the government. This can be accomplished in a variety of ways: helping to elect and re-elect local, state, and federal legislators who understand and advocate for small business issues and concerns. Schedule time to discuss your legislator's positions on small business issues. Contribute financially to their campaigns or volunteer your time or place of business. Better yet, run for office yourself, or encourage other small business owners to run. Join other small business owners through chambers of commerce and small business associations, such as the National Business Association or National Federation of Independent Businesses, which monitor legislation and voice concerns to key government representatives. Get appointed to a small business advisory board at the city or state level.

Only through activism can you help ensure that small businesses--the driving force in today's economy--will continue to forge ahead in the years to come.

"When it comes to contracts and economic development activity, it gets down to who you know and how strong your political contacts are," says Robinson.

As we look ahead to the next 30 years and beyond, the outlook is that black businesses will continue their growth, success, and undeniable impact on the New Economy--if we include the above five keys to empowerment as part of our collective strategy for black business growth and profitability.

spike lee

filmmaker, director, ceo, spike/ddb on expanding our business horizons

WE HAVE TO TAKE ADVANTAGE OF ALL THE OPPORTUNITIES that are happening now. A lot of people have given their lives so we could have them. We just have to mobilize. Some of the rhetoric that's being put out there may have been good 25 to 30 years ago, but we're in a new century. We've just got to make adjustments, move on, and move forward.

Right now, it's all about ownership, entrepreneurship. But [regarding the way African Americans do business], I don't think it should be, "All right, black people, this is the one way we're going to go." I've always said this and I will continue to say this until my last breath: we're not a more-minded people. I don't know how smart it is to say that all black people should do just one thing, do business one way. I understand [the notion that black businesses should make an effort to stay in the communities in which they're nurtured], but I don't think someone should be ostracized because they want to have a store on Fifth Avenue. They should be labeled as a sellout because they're not located in Harlem or BedStuy [Brooklyn]. That's backwards thinking. There is more than one way to help our community.

Spike Lee has established himself as one of the most influential filmmakers of modern times. An actor, writer, and director, Lee's big screen, commercial, and music video work are housed uncler 40 Acres & A Mule Filmworks. located in his native Brooklyn New York Unabashedly outspoken, Lee, who is also the CEO of the boutique advertising agency Spike/DDB, has used his talent to encourage America to look in the mirror and face its demons.

david steward

ceo, world wide technology inc. on incorporating spirituality into your company culture

THE BIBLICAL PRINCIPLES ARE VERY POWERFUL JESUS SAID "LOVE THY NEIGHBOR AS THYSELF."

That basic philosophy is about caring and sharing. It's key for businesses to rise these principles to create a collective vision for the environment.

That means constructing an organization that is built on putting others first. We demonstrate that principle through some of the things that we have done at World Wide: supporting our people through a benefits package that takes care of the employees as well as their spouses and children; matching their 401(k) retirement plan contributions dollar for dollar; making an investment in their career through educational programs; providing them with the autonomy to make creative decisions: and encouraging them to be entrepreneurial. This culture of sharing and caring reaches suppliers and customers as well.

I walk around the company and convey that message to our employees, including our interns. I let then] know that we are family and that we must be committed to one another. CEOs, now and in the future, must realize that they must focus on the individual. Everything flows from him or her. As it says in the Good Book, "You reap what you sow."

David Steward serves as the CEO of St. Louis-based World Wide Technology (WWT), the leading company on the BE INDUSTRIAL/SERVICE 100 with $413 million in gross sales. The 1999 BE Company of the Year, WWT had a 105.5% revenue jump in one year due to the company's New Economy locus on using the Internet to serve its customers. He always has been a corporate leader who practices what he preaches--Steward has taught Bible study courses to local business leaders.

terrie williams

founder and president the terrie williams agency on forming strategic alliances

STRATEGIC ALLIANCES ARE THE LIFEBLOOD OF A SUCCESSFUL BUSINESS.

I've always said that relationships are the key to success. We may not realize it, and our inclination may be to work solo but the fact is that two heads are better than one. It's the way to do business.

Whatever may be holding us back--ego or fear--it's important to make sure that we step outside our comfort zones and be aware of what's going on in our respective industries and in the world at large. A well-rounded individual will be better prepared to make the connections, establish a relationship, and maintain that relationship.

It's about having what I call top-of-mind awareness. Connect with people on a human level. Read as much as you can. Be aware. Keep your eyes and ears open. It's about going to places that might make you a little bit uncomfortable. Have a plan before you go and, once there make sure you have things to talk about. Knowledge and information are power--and you can use that power to establish contacts that may ultimately lead to joint projects or partnerships.

There's definitely strength in numbers. My business is now focusing on high-level consulting, and sometimes we pick Lip a project that isn't exactly in our line of expertise. For example, we're getting ready to help Kevin Garnett of the Minnesota Timberwolves launch his OBF clothing line. We don't specialize in fashion publicity, so we're going to link with a public relations firm that does. Another illustration: over the years we've had several clients mainstream corporations--that have come to my agency because they needed to partner with an African American firm. They realized the power iii working together. They launched their new product or announced their new initiative, and we brought them together with the opinion makers and movers and shakers in the black community. It's a win-win situation.

Some still have a fear of sharing their power with another company or individual--whether that company or individual be black, Latino, or mainstream. My advice? In this multicultural age it just makes plain economic sense to examine your business goals and objectives, be open to the advantages and opportunities of partnerships, and take advantage of the relationships you've forget over the years. It's the way to do business.

Terrie Williams opened her public relations and communications firm in 1988, with Eddie Murphy and Miles Davis as her first clients, She is a published author--with two new books slated for publication in 2001--lecturer, and community activist, A trained social worker who believes in the power of partnerships, she joined forces last year with nine other black-owned firms to form the African American Public Relations Network.