By DAVID HARRIS

While small businesses in southeast Queens have always had some of the most economically focused legislative representation in the state, the Queens Chamber of Commerce estimates that less than half of new businesses in the area are owned by African-Americans.

This translates into millions of dollars annually that leave southeast Queens in the pockets of people who don’t live there.

"All too often," said State Senator Malcolm Smith, "opportunities to build stable
and profitable businesses in Queens are acted upon from outside the borough, leaving our considerable local talent untapped."

That’s why Smith’s office has dedicated itself to helping businesses in his district try to find a solution to the problem and help them compete on a national level.

"If these current practices discourage companies from looking at what our businesses have to offer, we need to find solutions. If our local businessmen aren’t meeting the criteria for participation, we need to find out why."

Additionally, Congressman Gregory Meeks recently co-hosted a Franchise Fair in an effort to make accessible to the public information on the requirements and benefits of becoming a franchisee, and how to retain financing.

Kevin Hicks is the Executive Director of Blackman Associates which in 1999 was called upon by the Local Initiative Support Corporation (LISC) — an independent investiture for housing and economic development — to help overhaul a franchise program that just wasn’t working very well.

Senator Malcolm Smith and Assemblyman Jeffrion Aubrey took part in a recent "Franchise Fair" at York College. PRESS Photo by Ira Cohen

Hicks has been credited with bringing billion dollar interests like Subway, Jackson Hewitt, and Footlocker to Queens.

Since then, Blackman and based company have closed over two dozen franchise partnerships for minority clients this year, and six (out of 61 applicants) in just the last month.

So why does it require the exertion of so many politicians and organizations to bring the dream of business ownership within reach to Queens entrepreneurs? Gizella Frond, an associate at Blackman, explained that some franchises don’t consider southeast Queens an optimal location and so are hesitant to invest there. She says its not that prime spots don’t exist. "It’s just hard to put our hands on the land, Frond said."

A large part of the problem may be a misconception on the part of corporate America as to the commercial viability of south Queens.

When the College Point shopping Center opened in 1998 many of what should have been its most coveted lots remained vacant until Target opened an outlet that soon became the third busiest in the five boroughs. The remaining lots were sold within the year. "Major companies often underestimate our buying power," she said.

"Another obstacle," says Hicks "is developing the proper economic leadership."

Hicks applauds Meeks’ efforts but insists that the key is preparation, not publicity.

"First of all, what hurts us is a lack of entrepreneurial initiative and background. Few African Americans come from families who have owned businesses. Our conditioning has told us that the road to success leads through college and the preverbal ‘good job’ Caribbean families are 6-8 times more likely to come into the arena with a solid, practical experience. There is a history of self employment there that we just lack. "In the Caribbean everyone has a side job or a ‘hustle’ Because they don’t grow up with the support system of social services that we have learned to rely on, the bottom line there is if you don’t work you don’t eat," Hicks said.

According to Hicks, what holds many prospective buyers back is insufficient knowledge of bookkeeping and forecasting.

"Capital is the lifeblood of any business and even with HUB initiatives and the help of development groups like GJDC, if your books aren’t right no bank will talk to you. It’s not racial, it’s a question of money and common sense," he explained.

Hicks believes most prospective clients also have a misconception about what being in business involves.

It is imperative to realize that if you do secure a franchise that you are not buying success, you’re only buying opportunity. The hard work must still come from you.

Experts estimate that business owners are four times more likely to succeed with a franchises than with a start-up venture and twice as likely to succeed than if you buy an existing business.

"The major strength that the franchisers offer is their security. You’re plugged into a powerful buying collective. If you open Joe’s hamburgers you have to buy your beef for $1 a pound. Now, if McDonald’s buys the same meat for 60 cents a pound you are already at a disadvantage."

Collective marketing is another strength. An individual operation must decide, for example, whether to advertise in the Tribune or the Press. If, however, you own a franchise, every McDonalds ad is an ad for you. In addition the operation and training procedures that are made available to you that are professional and proven to succeed. Most importantly, owners have millions of dollars in fiscal planning and forecasting at their disposal.

For potential franchise owners, Hicks offers this advice : "There is a road map but once you find it you have to stick to it. Be patient. It’s a slow process and you have to plan. Go to trade shows, ask questions. Pursue it like a job and listen to people who know what they are doing.

Understand, being in a franchise is not being an entrepreneur. You can’t do it your way. You’re going to have to do it the foot locker way if you want to make it. This is an opportunity to be in business for yourself but not by yourself."

If you don’t have the resources to get started on your own, another option may be to start an investment group in raise the capital needed to get your dream off the ground.

"We’re not talking about two or three CEO’s with loads of disposable income here." Says Hicks "Maybe you work for the transit and you know someone who works at a bank. Eight or Ten people with median incomes who pool their money can make the difference."

70 percent of NYC franchises were started with 150,000 or less. And 23 percent of them are home based. No matter what your income, with some willpower and the right strategy you can pull it off. Asians and Jews have been doing it for years, why can’t we?"