ECONOMIC DEVELOPMENT & EMPOWERMENT
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1 ECONOMIC DEVELOPMENT & EMPOWERMENT Bishop McKinley Young Eleventh Episcopal District African Methodist Episcopal Church PRESENTED BY: James W. Means, IV, Principal Rev. Willie J. Nelson, Senior Advisor Retired Presiding Elder, Columbia District, Seventh Episcopal District, AME Church TONY GRANT, CEO GRANT BUSINESS STRATEGIES, INC. Copyright 2006 by Grant Business Strategies All rights reserved. No part of this document may be reproduced in any form or by any electronic or mechanical mean, including information storage and retrieval systems, without permission in writing from the publisher. November 2006
2 The Untapped Market Potential Full leverage of the Eleventh Episcopal District of the African Methodist Episcopal Church and its members is within reach. African Americans are one of the largest minority groups in the US, representing 13% of the US population. African Americans HAVE THE LARGEST BUYING POWER OF ALL MINORITY GROUPS IN THE UNITED STATES African American population continues to grow projected at 40 million strong by Retailers and manufacturers are targeting this niche market. The most effective strategy for cultivating the African American consumer is strong commitment to the community. Source: The Selig Center for Economic Growth The Multicultural Economy 2003, and Strategy Research Corp. 20
3 Facts about the African American Community Population 29,986,060 34,658,190 36,256,546 39,154,920 Buying Power (billions of dollars) $318.3 $548.9 $687.7 $921.3 Buying Power Market Share % 7.4% 8.2% Source: Selig Center for Economic Growth, The University of Georgia, May 2003 Black population is projected to reach 39,154,920 by year 2008 Black buying power expected to increase up by 189% in 2008 since African Americans account for almost nine cents out of every dollar spent The number of black-owned firms increased four times faster than all U.S. firms - according to the Survey of Minority-Owned Business Enterprises released by Census Bureau in 2001 As African Americans increase in number and purchasing power, their growing share of the U.S. consumer market draws more and more attention from retailers and producers alike. 8.4% 8.7% 21
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18 Understanding the African American Market Home and family are extremely important to the African American market segment, as are church, religion, education and community involvement. Religion ranks very high among African Americans, with 83% citing religion as being very important compared with 66% whites. (Source: Barna Research) 63% say the pastors of black churches are the most important leaders in the African American community (Source: Barna Research). Marketers are tapping into this to make headway in the black community. In other words, businesses targeting the African American market are taking community based strategy by networking through ethnic organizations primarily churches. Smart marketers are taking into account the important role of church in the lives of Black Boomers 36
19 Understanding the African American Market Building relationships with the African American community is important not only to generate business, but to maintain loyalty. Relationship building channels include event marketing and community-based programs. 86% of African Americans are more likely to buy products from companies that contribute to their communities than from those that don t. (Source: Market Segment Group) Marketers are solidifying their commitments to support minority firms and communities to earn a license to market. Big corporations are emphasizing diversity and developing a multicultural focus 37
20 The Recurring, Historic, Foundational Role Of Black Churches A typical African American member is most likely to turn to his or her church and family members for support. 63% of African Americans surveyed by Barna Research said Pastors of black churches are the most important leaders of the African American community. The black church is the greatest learning institution for African Americans. There are over 43,000 predominantly black churches in this country. Every Sunday, approximately 21 million African Americans come together. Potential for churches to teach financial stewardship from the pulpit. African American philosophy We give and then we give again, with whatever we have at hand 53% African Americans give to charity, with primary interests being religion, education, health and human services with 59% of donations for religious causes particularly their churches. Blacks are far more likely to see themselves as religious and spiritual, and marketers that have tapped into this are making headway in the black community. Businesses targeting the African American market are taking community based strategy by networking through ethnic organizations primarily churches. Smart marketers are taking into account the important role of church in the lives of Black Boomers (e.g. A college investment financial planning program service directly targets black pastors rather than targeting black Boomers because research show black boomers listen to what pastors have to say per AccuData America) 38
21 Food Industry - Market Potential Example African American families spends 30% more on weekly groceries than the population at large. Food, is the second-largest expenditure for African Americans, trailing only housing. (As per 2003 Target Market News). African Americans spend roughly $94 per week on average according to Food Marketing Institute Trends 2000 survey. (Example of membership base food expenditure: 50,000 church members/households * 52 weeks * $94 = $244,400,000 ) The majority of African Americans are most likely to shop for groceries at chain supermarkets e.g Piggly Wiggly, Food Lion etc. 87% of respondents said they would be more likely to buy from a company that give back to the African American community. Companies such as Kraft and Procter & Gamble are reaching out to African American consumers in a way that is culturally relevant. Source: Supermarket News 39
22 Economic Empowerment Economic empowerment is the civil rights of today. We need to strengthen the economic foundation of African-American communities and bring about a systemic change in attitudes about money and money management. Economic empowerment should be a priority issue to help our community begin to prepare for a solid economic future. The Census Bureau is projecting that 90 percent of the net population growth in this country over the next 50 years will be in minority groups. As the demographics of our country change, minorities will have an increasing role in our economic growth and progress. But to achieve this wealth and opportunity, we have to close the gaps. The achievement gap the poverty gap the employment gap the homeownership gap the entrepreneurship gap. Economic empowerment is the key that will open doors. Wealth building enables individuals to achieve financial independence, enables communities to prosper. Wealth building and African-American homeownership is not just a moral imperative, not just a social imperative, but an economic imperative. 40
23 Conclusion The buying power of the African American market segment represents not only consumption but power of investing and ownership. This is the financial strength or potential for economic impact that can lead to financial empowerment. Demographic and economic trends of minority groups should be used to position ourselves to grow wealth, establish and grow businesses and achieve economic empowerment. This growth has been the catalyst for community development and the growth has clearly created opportunities domestically for economic development. Identify and leverage mutually beneficial strategic alliances that fully complements the organization and its constituent groups by leveraging the buying power. 41
24 Conclusion Expand economic development initiatives, to include a focus on leveraging partnership relationship to: 1. Enhance understanding of the value of the urban market 2. Increase lending and investment in inner city markets, minorities and minority-owned businesses 3. Provide more education for minorities in the area of investment/ownership and becoming entrepreneurs. 42
25 For more Information on Grant Business Strategies, Inc. Please visit our website: 43
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