Jim Cooper's Orange County; Black History: The Achievements

Jim Cooper's Orange County is made possible by grants from Disneyland Park. Announcing its new attraction, Star Tours, now boarding passengers for a space flight adventure. By Signal Landmark Incorporated, developer of Southern California real estate and builder of Landmark Homes. And by Robert Half, an account temps, providing permanent and temporary accounting, financial, and EDP personnel with offices in Newport Beach and throughout Southern California. Among the important benefits of observances like Black History Month or the national holiday for Dr. Martin Luther King is the requirement for all America to make annual assessments on the condition of all minorities in the fabric of our national life. Each year there are reminders that discrimination and injustice still exist in housing, jobs, and educational opportunity. But there are also positive figures for betterment in achievements in racial goals. One of those positive reports is that black-owned private businesses increased in America by 47 percent between 1977 and 1982. Today there are 600,000 minority-owned businesses in America, and 25 percent of those

are in Southern California. I'm Jim Cooper, and today I look at black history in Orange County where the spotlight on achievements in the business arena. In Orange County where unemployment stands at only 4 percent, black unemployment is 6 percent and black teenage unemployment is about 17 percent. Many black residents in Orange County are important role models for youth, however, and many local Black citizens now are conspicuously

represented in their professions, in education, and the corporate and private business operations. Today I'll talk about some of those business achievements with special guests. But first, let's look at a major project, Minority Business Opportunity Day, which took place this week in Anaheim. Now in its 16th year, the Minority Business Opportunity Day Trade Fair, held this Tuesday in Anaheim, was attended by 450 minority business men and women mostly from Orange County. The objective was to meet with purchasing executives of 138 Southern California corporations who could be buyers of what the minority entrepreneurs offer to sell The fair alternates each year between Los Angeles and Orange counties. This is the 6th time it has taken place in Orange County. Another group, the Orange County Regional Purchasing Council, helped in sponsoring the event attended by more than 600 minority business people. The corporations, which privately joined together to sponsor the trade fair, ranged from giant aerospace and electronics firms to insurance, food service, manufacturing, and cosmetic companies. Booths were staffed by purchasing

officers and personnel executives of the corporations who are potential buyers of the minority business's company products. Although booths cost several 100 dollars for the corporations, the fee was only 25 dollars for any minority business person to attend. The idea is to create a single forum place for black, Hispanic, Asian, or American Indian business people to make contacts to be followed up later to develop new accounts. The largest number of minority entrepreneurs were among the growing numbers of successful black and Hispanic business owners in Orange County. I talked to some of them. Jim Espinosa is president of the Orange Coast Electric Supply Company headquartered in Santa Ana. He came to his first fair in 1980, and that helped him start his business. What is it meant to you to come to this fair, and how did it help you as a Hispanic businessman starting out? In 1980, we were in the middle of a recession, and I started, uh, an electric supply company with, uh, an area that I had had a lot of experience in, but I didn't have any customers at the time that I started. So I attended the first, uh, Minority Opportunity

Day that I was invited to at that time and made several contacts, and in the weeks that followed up, I got substantial business from several of the companies that we see here today. And I am still getting business from them today. Very simply, what's the value to these, uh uh, suppliers who come and reach 138 corporations here in one room today? It's enormous. Uh, not only do you get, uh, all the, uh, contacts that you make in there today, but it saves you dollars in, in, uh, traveling expenses, and it saves you hours and hours in time. Uh, without, you don't have to make appointments. They're pre-made for ya so it's just enormous. Jim Charlow is president and owner of Trontech Incorporated, an aerospace and defense contractor. He'd been coming to these fairs since 1982. What's the biggest plus from the standpoint of the supplier? Well Jim I think one of the, uh, one of the biggest advantages for a company like mine is the opportunity to, uh, expose their wares and their capabilities to such a large number of companies at one location and one time. What's in it for the 138 corporations that come here and, and uh, and

employ the goods and services of all the suppliers? Well it's sort of a reverse of what I just said for myself. They, in turn, will find out what is available right now in the minority and the small business community, uh, as far as capabilities are concerned, mainly high tech. What about many minority business men who are trying to start out and to gain new accounts, to gain new business? How important is this? I think this is a very very important format for those companies, okay? I believe that, uh, the key here is perseverance, perseverance, and more perseverance, uh, to follow up on the leads and, uh, to do what you say you can do. As a minority business man who had to start out tonight in what is a very competitive business, how has it change your life? How does it help your life? I'll tell you being in business as a minority entrepreneur has changed my life significantly from being in the corporate world. Here I find that, uh, in addition to perseverance, it's belief and faith. And, uh, that's very important.

Whether the corporations were manufacturers, wholesalers, or those in the building trades industry, the attitude of the corporations was one of openness and encouragement, but competitiveness was a key word. The corporate people want to encourage purchases from minority businesses, but they expect the services and products to be competitive with all suppliers. Some Orange County minority business firms say that 30 to 40 percent of their annual business comes from contacts that are made through the trade fair. Malcolm Smith is Anaheim plant manager for Coca-Cola Foods, and he's also a general chairperson for the whole event here today. What's the biggest motivating reason that you have for getting so involved and putting so much energy into this? Well Jim I think it's, it's a civic pride on the part of Coca-Cola Foods. That we have a, a chance here to develop some economic opportunity for the minority suppliers as, as well as give them a chance to take a look at us. What way do you have of measuring the success of this whole program of the 138 corporations involved here today?

That's, that's difficult to do because you don't measure it in dollars and cents. You don't measure it in the numbers of people that come. Um. Probably the, uh, sellers measure it, uh, no uh, the amount of contacts that they make, and it's more or less done on an individual basis. You can measure it somewhat by just the number of people that come back year after year after year, both the companies and sellers. What about the, uh, all of the suppliers that come here all these years? What is the biggest plus, the biggest been of for them? Well, where else can you meet 138 people or companies and talk to the people that can make the decisions whether or not they need their particular items? You don't do that by making sales calls or getting on the phone. The large turnout and professional approach of the minority business men and women present strong evidence of the growing communities of successful black, Hispanic, and Asian business people now located in Orange County. Their numbers are clearly growing. Was it all helpful for the 138 companies and corporations who are buyers of goods and services? Was it productive for the 450 minority businesses who came to sell their wares?

Well from the comments on both sides of the table today, the answer was positive and enthusiastic. It was productive and well worth the continuing effort. Jim Cooper at the Minority Business Opportunity Day Trade Fair in Anaheim. And that was a lot of fun. And now we're gonna meet our guests. James McClellan is president of the Black Business Alliance of Orange County. He was one of the founders when it was established in 1983 to promote black business development in Orange County. He's a sales representative for Digital Equipment Corporation and formerly co-owned 2 import- importing companies with his wife when Gwendolyn. Kay Tyson is manager of the business development program for Coca-Cola Bottling Company of Los Angeles. She's also chairperson of the board for the Southern California Regional Purchasing Council. She's on the executive board of the Black Women's Collective and a member of the Federation of Business and Professional Women. Al Dawson is the Small and Disadvantaged Business Program manager for Ford Aer- Aeronutronic Program in Newport Beach. He's also chair of the Orange County Regional Purchasing Council. He studied international economics

at the University of Heidelberg, Germany and has 15 years experience as an advocate for minority business development. Robert Miranda is co-owner of Miranda and Strabala Associates, certified public accountants. A USC graduate, he started this firm with a partner 7 years ago, and they now employ 20 professionals in small business tax and accounting services. He's chairman of the board of the Santa Ana Chamber of Commerce and is an Orange County United Way board member. We often think of many contributions of black people and of all minorities during Black History Month in the arts and music and any other contributions, but we, this year, want to focus on business achievements. What kind of achievements? What kind of, uh, marks are being made by many many people in the business and corporate world, partic- particularly in Orange County. I think I'd like to start with you, Jim, because your organization today is having the, uh, business outlook for the 90s. The, uh, the Black Ribbons Alliance is having the business outlook for the 90s. Is that correct? That's correct. For the, for the black business?

Exactly. Wha- what are you finding out from that? Well, well, we're finding out several things. One, it's a combination of good news and bad news. One, we're in probably one of the most conducive areas of the country to start a business. Any type of business whether you're a minority, a majority, uh, male, female. Orange County certainly has the credentials as being a very very- Lot of economic vitality. Lot of economic vitality. Um. We've heard statistics that, um, far, uh, exceeding any other part of the country. The, uh workforce here showed a greater interest of being willing to work as their own employer, start their own business, and I think that's like, uh, 37 and 39 percent of the individuals that were surveyed in the 1980, I mean, 1985 survey. So you have a very very vital area, uh uh, to work with. And the, uh, our constituency which is a a broad base of all types of businesses, uh ah, share in that enthusiasm. Uh. The other side of the coin basically, Jim, is that it is, uh, traditionally or has been traditionally harder in Orange County to start a business if you are a minority especially if you're black. And that's strictly because of the historical background that Orange County has had

perhaps culturally and, um, racially. And also from the standpoint of accessibility to traditional forms of financing, capitalization, uh, promotion, advertising. And it's to that end that the Black Business Alliance of Orange County wants to try and help make a difference through networking, through bringing to form more and more about those, uh, vital companies that are getting started here by minorities and also to network with the majority community to make sure that it is well known. the, uh, the expertise that have in so many different areas. I think a 65 page book that your organization puts out. Yes. I was very impressed with the 65 pages of, uh, minority businesses. Right, we do that annually. I was impressed. We do that annually. And i- it's part of the service that we've dedicated ourselves to to this community and that is, one, basically let others amongst ourselves also, but, uh, let others know that there is a sizable amount of, uh, black-owned and operated businesses in Orange County. That they represent not only just your traditional mom and pop stores

but some very very innovative and creative businesses. And some very sophisticated ones. Exactly. Exactly. And that's important to know because i- I think, it, you can get to the illusion or at least a feeling. Mhm. That most businesses that are in Orange County either are not visible or of the smaller variety that don't represent some of the more attractive, uh, businesses that we've gone that we've gone to l-. If we were doing this show 20 years ago, I would not be holding in my hand the directory with 65 pages of black and minority businesses. You'd probably have it on 1 page. I'd probably have it in 2 pages. [laughter] So there is uh, like you say, black- good news and bad news and, uh, at least that's on the good news side. Kay, what about your feelings about this? Uh you, you must feel pretty good about the. Oh. Big turnout you had, at the, at the minority business opportunities. Oh, I feel, I can't even voice the word for it, Jim. Each year, when we hold the trade fair, that it's thanks to its outstanding Let's see how large numbers continually grow, you know? Uh, the one good thing, um, I can reiterate on what Jim had said is to see how many new businesses that are

coming out each year. How many what? New companies, I should say. Small or disadvantaged business companies that are coming out. And, and ever, in the whole spectrum of the business community. That's right. And they're getting away from the basic and that is, uh, strictly being in, uh, I should say, billing and maintenance services. They're in high tech. High tech? High tech. Which is a very, uh, has been a very difficult area. The thing I was impressed about, uh, walking around there with the 600 people there it was, number one the big turnout, but the degree of sophistication of the services and goods that were being offered. Uh-huh. We're not talking about a flori- florist shop here. We're talking about people that can make electronic components and do them well and, and competitively. Uh-huh. That's what I meant about high tech. Al, you know you're in the corporate world. They're in electronic. Yes. So you know on both sides of the aisle of both being in the corporate world but also what it's like to be on the outside to, to um, make an appeal to them to sell your, your wares or your goods and products.

What about that? Yes, um. We have, uh, understood and tried to meet our role in increasing minority business development for a number of years. Uh. Internally within my company at Ford Aerospace, uh, we are concentrating on the large volume, uh, commitments. We're looking at the, the high tech side of it, and we are finding these type of suppliers in Orange County and elsewhere. But you wouldn't find them 20 years ago here. Oh no. Never. We probably wouldn't have found them 20 years ago and of course our emphasis, if it had of been an emphasis in that time frame of minority development, it would have been in other areas. Mhm. Uh, but uh, today we're seeing a, a growing awareness of what it's going to take to interface with our industry as well as the uh, the commercial side of the marketplace in Southern California. Where do we go from here? What, what is, what is their hope of the, of the, not just the, the Minority Business Opportunity Day, but what are your hopes? What is the vision that you see for you- for your group? Well, one of the things that personally I have is that, uh, I would like to see the day come when we

don't have to make a distinction between minority business or small business, and that we're in a society that looks upon business for business sake. Mhm, either you cut the mustard or you don't cut the mustard as far as the business. That's it. That's it. And uh um, but until we meet that particular, uh, objective or goal, we're gonna have to, uh, strive for goals and objectives that's gonna bring about this type of a, uh, in betterment in the marketplace. Uh. But that's what we'd like to see. But I, I think we should make it clear that some of the aerospace firms, for example the big aerospace firms, are mandated by government contract to make an effort, to make a positive effort in affirmative action and in, also in, in uh, purchasing. But a lot of the corporations that were there at this thing did not have to do that. In other words, they didn't have to be there on Tuesday. A cosmetic company doesn't have to make this effort, and yet you have a big participation. Okay. What's the magic that you- Well I think that it's a- that you account for that? It's a good faith effort, really. Uh. A good faith effort? I can speak from Coca-Cola. Uh. What we are doing is putting back into the minority community what we are taking out,

and therefore we strive on that. Uh, put emphasis on the good faith effort. And it's- it's a real, that's a real effort, not a phony effort. That's right. No. No. Uh. Productive in other words? Of course, mhm. A couple of people I talked to, a couple of suppliers, said they get as high as 30 and 40 percent of their annual business from coming to this. And the follow ups, not just for coming you know, the one day, but all the follow ups. That's a pretty impressive figure. Uh. Yes, it is Jim. And you know, uh, I think there's, uh, Malcolm Smith pointed out earlier nowhere can you find as many majority companies at a single gathering in a single day than you can at such an event as this. Uh. It would take you years to cover 140-some odd companies. Yeah. And here you have these people in, uh, under one roof in a day devoted especially for their best interests. So from a marketing point of view and as uh, as ice breaker, as an intro into the corporate structure this is it's a it's an ideal forum. Uh. We promote it, and we think it's working. Bob,

we haven't heard from you. You started a business with what, one one partner, now you're hiring 20 other people as a minority business, and how tough was it? It has been tough. If I had to do it over again, I probably would do it over again. But uh, it is a challenge to start your own business. Uh, I think the programs that the major corporations are doing to reach out, to work with minorities are very significant very impressive. Uh, but it gets down to the basics of the free enterprise system. If you're competitive, you're going to succeed. And I think that's what's happening now to some of the activities of corporate America reaching out. To work with minorities. That makes some sense in terms of the, the uh, the social value, but also the- Seven years you been in the- your business? Yes I have been. And now you hire 20, you're hiring 20 professionals. That- that's correct. Tell me, uh uh, many of your clients, uh, also are minority businesses. Yes, they are. Uh, we work- Have you seen a lot of growth that way in-? Absolutely. We work with a lot of minority companies that are just getting started. We work with them in terms of their, their development. Their financial needs. Their financial planning requirements so that they can be successful in, in the mainstream of the economy. You know I think of, uh, the word role model, and there are- you hear a lot of role models at this meeting. I'm sure there are at your

place. I think of the downside of our, our unemployment figures. We, we uh, boast in Orange Count, we only have 4 percent unemployment. 6 percent among blacks but 17 percent among black youths. Wh- how does what we're doing, what we're talking about address to them? Well. Young men, young black men and young black women. [Kay clears her throat] Well, I think that uh, perhaps add, um, a rounding out of this that we're- we all, I think, mirror the pride that we have in the efforts that we work with and the community that we work with here in Orange County in Southern California in general. But there are some very disturbing signs, Jim, that are on the horizon, that if we don't take care of, we're gonna have some very, very serious problems in the future. For example, about the continuous, um uh, unemployment statistics of not only blacks in general, but the, um, black youths which are are sometimes 2 and 3 times higher than the local unemployment, um uh, statistics. Mhm. This gets almost 3 times, 3 times higher. Exactly. Also there's some disturbing, um, things from the support systems that businesses have to look at. For

example, there's been a net decrease in the number of black college students over the last 20 years in uh. Mhm. This country. Statistically, there's about 14 percent of the workforce in the United States that call themself professional or managers. Mhm. In the black community it's less than 7 percent. So you know, you have to kind of round out our, our feeling of positiveness and expectation with the idea that things perhaps are not as good overall as we hope. Um, I think the comment was made, there is more segregation in 1987 in the board room of corporate America than there ever was in the south in 1957 in the classroom. And those are very, very important indications of how we're gonna have to monitor our progress and be that much more aggressive. Um, the end results, or way we see it from our organization, from the Black Business Alliance, is the fact there's going to be more reliance on self-help. There's gonna be more reliance on the quality of the individual who chooses to run their own business. They're gonna have to have more support, um uh,

structures like the MBOD, like the Black Business Alliance, Bob's group. Uh, we're gonna have to be more, more inventive about the way we choose to help our own, um uh, fortunes in the future. We're gonna look to corporate America. We're gonna look to, um uh, inventive programs from the government. But we know that it's gonna take primarily our own, um uh, innovation and sweat and tears to make a lot of these things come to fore. I'd like to read, uh uh, all of you a quote from, uh, Ebony Magazine on a survey that they did. They said even that the black presence has made a difference in the fabric of American society. Most of today's black students, the young people, wanting to make a greater impact than their predecessors are more concerned about financial success than mere titles or positions and see themselves as prosperous entrepreneurs by the end of the century. Uh, Kay, will you pick up on that a little bit? Is that a valid, uh, quest for a lot of the young black students? Well. We want to see that. My own personal [Kay laughs] opinion on that, Jim,

I think it is. I think the emphasis is, today's emphasis I think is strictly away from the titles. Uh, I don't think so many of the students are concerned nowadays as we were, I should say when I was in high school, as far as getting the title first. But now I work at a bank, but it is what do you do at the bank? That's right. [Kay laughs] Now, I think the concentration is basically on, is uh, the money. Mhm. Okay? Getting the money to go forth with it. And that means establishing a business that can show worth and not so much as a title I got. Al, do you have something to say about that? Well yes. Of entrepreneurship as a proper goal for a lot of young black people. Yes, I, certainly, I am all for it because that's a career that I chose. Yes, I think it is, uh. We cannot separate, uh, our well-being today from the economic prosperity that we all enjoy. And, uh, it's so much a part of the American dream to be an entrepreneur I suppose as apple pie or, or motherhood. Uh, we certainly want to set those type

of role images from where we're, from where we're coming from today and hopefully inspire the youth tomorrow to be, uh, business people in their own right. It certainly is a worthy endeavor. And, uh, gosh. We want to everything we can to make it work. But i- it's both ways. It works both ways. That's a tremendous contribution, not only to black, uh, people getting where they should be in many high, high level corporate jobs, but the contribution that comes back to society because of their being there. There's a statement that-. There's a scientist-. Oh, sorry. Right, that a rising tide helps all boats. That if you, um, inspire anyone in the efforts of becoming all they can become, then everyone gets to benefit. Dr. Charles Drew who, um, found out how to isolate and preserve blood plasma was accredited to saving thousands of lives- But, society is-. and World War 2. And, yeah exactly and, and that saved not only, you know, black lives. It's saved white lives. It's saved lives, um, all over the world. So you have to have ways of inspiring and giving perhaps

some innovative ways of encouraging people to do some of the things which perhaps we call entrepreneurship, but, uh, are following the lines of creativity and innovation. And that's a contribution. Every bit as an important contribution as talking about contribution in literature and the arts and that kind of things. We that-. And I think one thing that we don't want to miss, Jim, that, out of all of this, uh, the entrepreneur spirit does impact on the labor force. And we are an age, and we're rapidly moving toward an even greater age, of technology where jobs will be in a short supply. And it's from the entrepreneurial spirit, the small businesses, minority businesses, that's gonna impact the labor forces of tomorrow and, uh, give us those jobs that's gon' to mean something to the family structure. Robert, what would you like to say to young, a lot of young Hispanic men and women who maybe have been hesitant to try out, uh, becoming an entrepreneur? Well, I think it's exciting to see that, uh, the youth are looking more toward business as opportunities as opposed to just getting into a corporate environment and, and staying there through, through their retirement. So I would

encourage, and the opportunity is certainly there. Uh, they have to, you know, apply themself as they would have to do in any career path, but uh, I would certainly encourage them. A Wall Street survey recently asked, uh, many corporate executives who are black this question about how would you describe the attitude of your corporate opportunities. In another words, are you stymying when you get up so high or can you go on up? And 59 percent of them said that the attitude they see in the corporate climate of their corporations was indifferent. 41 said patronizing. 40 percent said reluctant to accept blacks. And only 24 percent were encouraging to blacks to move up that corporate ladder. Any one of you want to c- pick up on that? I- I'll just say, um, just basically, um, I think we're finding in today's present business environment where the onslaught of off shore, um uh, countries getting very very much into a lot of the businesses that are highly productive. Corporate America is closing ranks and is doing a lot of things for their own preservation. But are doors to blacks being closed up the ladder? Well, I think it's not

necessarily closed. It's based upon the fact that it is no longer a tendency to look toward those goals, when you get to that level, to try and meet. There certainly are at the entry levels and perhaps 1 or 2 steps into it. But at the higher levels I think it is basically a, uh, I think insensitive was one of the, uh, terms that were used. I think it's definitely, uh-. Kay, what about that? Jim, I'm gonna say indifferent because I don't know of the concentration nowadays is so much on the ethnic group, period. Uh. Being that a lot of the corporations are cutting back and are tightening their belts. Now-. What would you say about black women on the way up? Any advice to them? Yes, keep on going. [Kay laughs] Keep on going? And don't stop. Uh. Establish high goals and objectives and achieve them. And achieve them. On that note, our time is almost up now. I do want to thank all of you for your comments on black business opportunities in this year of 1987. Lot better than what had been 20 years ago. Please join me next week at this same time when I'll have a, my special guest, March Fong Eu, secretary of state for California. I'm Jim Cooper. Thanks for being with us.

Jim Cooper's Orange County is made possible by grants from Disneyland Park. Announcing its new attraction Star Tours, now boarding passengers for a space flight adventure. By Signal Landmark Incorporated, developer of Southern California real estate and

builder of Landmark Homes. And by Robert Half, an account temps, providing permanent and temporary accounting, financial and EDP personnel with offices in Newport Beach and throughout Southern California.