How They Made It: A Look into the Motivation and Success Factors of African American Entrepreneurs in Dayton, OH

Presented by: Ty A. Stone, PhD

“There is a difference in teaching someone how to not lose…

and in teaching them how to win”

The New Economy

Overview

• Economic downturn

• African American impact

• Economic recovery

Black Economics

Total Black Economy

Aggregate household income of approx. $900B

Buying power of $1.1T expected by 2015

Economic power exceeds 14th richest nation

So….

Since we are not poor, the question that begs to be answered is:

Why are we Broke?

AND

What are we going to do about it?

Entrepreneurship Always considered the “great equalizer” still only about 5% of small businesses are

black owned nationwide

While blacks are two times more likely to establish a business, they are less successful beyond initial startup

Lack of access to capital Discrimination Barriers of entry to certain industries

Dayton’s population is 45% African American; however, only 7.2% of the 61,000 businesses are African American owned

The way to solve the unemployment problem is for blacks to be the number one employer of blacks (George Fraser, 2013)

MOTIVATION

Motivation is what gets you started. Habit is what keeps you going. –Jim Rohn

What Motivates African Americans into the Pursuit of Entrepreneurship?

Entrepreneurial motivation N %

Independence 11 55

Altruism 3 15

Money 3 15

Family expectations 2 10

Need 1 5

What motivated African Americans to pursue entreprenuership?

What was the motivation to continue after failure?

SUCCESS

“Success is Intentional and Deliberate”

What Success Strategies do successful African American entrepreneurs employ?

What were the attributes to entrepreneurial success?

What were the success strategies used by participants?

Attribute N %

Faith in God 6 30

Mentors/professional

relationships

6 30

Family 3 15

Work ethic 2 10

Planning 1 5

Ability to identify opportunities 1 5

Optimism 1 5

Strategy % N

Mentors 38 6

Creating Value 38 6

Determination 12 2

Planning 6 1

Flexibility 6 1

Entrepreneurial Motivation & Success

http://www.youtube.com/watch?v=NAeha727ZWI

Recap of the Motivation & Success Strategies of Successful African American entrepreneursMotivation

Participants were motivated by:(a) independence, (b) altruism, (c) money, (d) family expectations, and (e) filling a need.

Participants were motivated to continue after failure by:(a) an unwillingness to fail, and (b) responsibility to others.

Success strategies

Participants attributed success to:(a) mentors, (b) faith in God, (c) family, (d) work ethic, (e) planning, (f) identifying opportunities, and (g) optimism.

Participants strategies for success:(a) use of mentors, (b) creating value for customers, (c) determination, (d) planning, and (e) flexibility.

Model of Successful African American Entrepreneurs

Questions?