by China N. Okasi
Innovation is a term that economists still struggle to define when trying to quantify and qualify growth as well as change and evolution in the business world. In a way, there is no simple and direct measure of innovation but here at TAP, we’ve taken a shot at outlining our own criteria for innovation and compiling a list of the five most innovative African-American cities in the U.S. Our ratings systems consists of the city’s entrepreneurship rates, social brand, and political leadership. To be fair, we’ve included employment rates in the ratings, and subtracted points for low African-American unemployment rates. The following American cities, in essence, foster creativity, entrepreneurship and act as centers for positive African-American growth.
5. Twin Cities, Minnesota
Black entrepreneurship rates in the twin cities are quite impressive. According to the most recent Survey of Business Owners conducted by the U.S. Economic Census, black-owned firms grew by 95 percent in Minnesota from 1997 to 2002 (they practically doubled).
In addition, we were impressed by the Minneapolis Consortium of Community Developers (MCCD)’s commitment to African-American entrepreneurship. According to the Federal Reserve Bank of Minneapolis, the Consortium awarded 58 percent of its new loans in 2005 to African American-owned businesses. The Consortium also created new loans for black muslim entrepreneurs whose beliefs had prohibited them from borrowing money with “interest” attached to it!
As for social brand, the fusion of Somali and other African immigrants with the African-American base has created a powerful 21st century social brand in those cities (St. Paul and Minneapolis). In the political arena, Minneapolis Mayor R.T. Rybak scored points for his three-time election on a populist platform. We’ll see what happens as Rybak runs for governor this year.
The unemployment rate for black men and women in the Twin Cities was disturbingly high at 14.1%, according to City-data.com, but not as high as many other cities in this list that have seen African-Americans struggle amidst recession.
Overall Score: 3.0
Entrepreneurship——4.0
Social brand————-3.0
Political Leadership—3.0
Employment————-2.0
4. Atlanta, Georgia
The city of Atlanta earned its spot on the list with high black entrepreneurship rates. According to the most recent U.S. Economic Census, the whole state of Georgia has the fourth largest number of black-owned firms, and the booming Atlanta capital thrives from that fact.
Furthermore, Atlanta’s social brand can be witnessed in almost every hit African-American reality TV show franchise. From “Real Housewives of Atlanta”, to Mo’Nique’s hit late night talk show, there’s no doubt that Atlanta pulls some major production weight, and has blossomed into a black Hollywood. Plus, who could forget that the city is home to the first-ever African-American-owned film studio in the United States: the Tyler Perry Studios. In addition, the city is a hotbed for African-American music and a haven for black music producers.
As for mayoral leadership, the December runoff between Mary Norwood, of Caucasian descent, and Kasim Reed, of African-American descent, showed that Atlanta’s populace is not blindly driven by race, but rather focused on comprehensive political debate.
To be sure, Atlanta almost didn’t make it to the Atlanta Post’s Top 5 Innovative Cities list, because its average unemployment rate for black men and women came in at a whopping 16.9% (which by the way is two points less than Chicago’s). The city was redeemed by its other enterprising features.
Overall Score: 3.25
Employment————-1.5
Entrepreneurship——3.5
Social brand————-5.0
Political Leadership—3.0
3. Los Angeles, California
The state of California has the second largest number of black-owned firms in the U.S., the county of Los Angeles has the second largest number of black-owned firms, and the city of Los Angeles ranks third among cities with black-owned firms, according to the U.S. Economic Census. These numbers are pretty impressive.
As for L.A.’s social brand, need we spell it out? Hollywood. This industry employs plenty of labor from actors to writers to producers to paparrazi. Black Entertainment Television may be based in Washington DC but Los Angeles is definitely representing for black entertainment talent.
Political leadership in Los Angeles falters, as the entire state of California faced crises in the form of I.O.Us and other shocking economic deficits. Still, Los Angeles was the home of the late five-term mayor, Tom Bradley (b. 1917-1998), whose surprising loss in a 1982 gubernatorial race came to be known as the “Bradley effect.” Many voters suspected that, although whites appeared to have favored the African-American Bradley in public, they couldn’t actually bring themselves to vote for him that year.
We do give some political points to students, who in December of 2009 protested in front of Gov. Arnold Schwarzenegger’s downtown Los Angeles office, demanding educational reform. However, we subtract points from this city because its average unemployment rate for black men and women registers at 16.5%, according to City-data.com.
Overall Score: 3.375
Entrepreneurship——4.0
Social brand————-5.0
Political Leadership—3.0
Employment————-1.5
2. Brooklyn, New York
Brooklyn is not a city, per se but for all intents and purposes, we’ve included it as such. Brooklyn’s “Kings County” has the third largest number of black-owned firms in all U.S. Counties. Additionally, New York State and New York City have the largest number of black-owned firms in the country, according to the most recent U.S. Economic Census.
Brooklyn’s social brand gets very high scores on this list, since Brooklyn serves as the home of major icons in the rap world such as Jay-Z. It’s hard to deny “where Brooklyn at?” as one of the most common phrases in the hip-hop world, which has really become the entire globe. Additionally, home-based businesses-turned-full-fledged corporations, such as Carol’s Daughter have made their marks in the African-American economy and society-at-large. Thanks to the influx of middle-class African-Americas and thriving Bohemian culture, Brooklyn hubs nab some of Harlem’s historical shine.
As for politics in Brooklyn, it’s rife with tense local elections and debates over gentrification that dramatize the city’s political score. We’re not sure whether to subtract points from the city’s former mayor, Ken Patton, who left his office abruptly in February of 2009 (then later resigned), or to add points for his establishing a Chamber of Commerce for local businesses when he took office in 2000. Thus, we gave the city a neutral political score.
The average unemployment rate for black men and women in Brooklyn registered at 14.8%, according to City-data.com. That’s a painful percentage, of course, which cost the city some points on this list.
Overall Score: 3.5
Entrepreneurship——4.0
Social brand————-5.0
Political Leadership—3.0
Employment————-2.0
1. Prince George’s County, Maryland
This region of Maryland ranks highly for a number of reasons. First, unemployment rates for black men and women in Prince George’s County are extremely low, compared to the other cities on this list…we’re talking as low as 2.3% for black females in Bowie, and 1.9% for black females in Laurel, Maryland. Other areas in the County, such as Greenbelt, average just over 5% in unemployment rate: still a far cry from the rest of the nation. In its African-American employment rates alone, the county is innovative.
What’s more, areas in the County, like Bowie and Greenbelt, have high median household incomes in black households. In Bowie, for example, the median household income for black householders is $99,920, and $91,680 for white householders, according to City-Data.com. In Greenbelt, the median household income is $58,363 for blacks, and $55,985 for whites. The entire Prince George’s County has 10 cities, which thrive similarly.
In terms of entrepreneurship, the famed PG County, as it’s called, ranks fourth among U.S. cities with black-owned firms, according to the most recent U.S. Economic Census. And, although New York typically has the highest number of black-owned firms, the County’s neighboring city, D.C. had the highest percentage, just over a decade ago.
In short, PG County is the wealthiest county in the nation with an African-American majority. Of course, it’s near the glamorous and powerful DC scene. These attractive features raise the County’s social and political capital (no pun intended), and thus warrant its status as #1 on our Top 5 List of Innovative Cities for African-Americans!
Overall Score: 4.0
Entrepreneurship——4.5
Social brand————-4.0
Political Leadership—3.0
Employment————-4.5
