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Black Muslims Are Urging a Combining of Economic Resources

By REGINALD STUART
Special to The New York Times

ATLANTA — The nation's largest black enterprise, the Nation of Islam, is advocating the pooling of resources within the black economic community, regardless of religious viewpoints, as an alternative to possible closing of black businesses at ta time of general economic problems.

The nations, which has its headquarters in Chicago, made the gesture to members of the National Business League, the major trade association of black business operators, who gathered here for their 74th annual convention last week.

It was the first time the religious order, which has a variety of business enterprises headed by the black Muslim leader, Elijah Muhammed, had made a formal proposal to blacks who operate businesses for personal profit.

It was also the first time the league had formally recognized the Nation of Islam as a thriving economic force in the black community. The Nation of Islam has assets estimated to be in excess of $60-million, but it has been financially pressed in recent years. Restaurant chains, apparel and food operation, are among the order's holdings.
        
Farrakhan Speaks

At a luncheon during the four-day convention, Minister Louis Farrakhan of New York, who serves as public spokesman for the religious order, told an audience of more than 1,000 persons that, "we do need one another. If you would unite with the Honorable Elijah Muhammed, whether you agree with our religion or not, we must do something collectively ourselves. Our gifts are complementary and must be put together." Minister Farrakhan also told the audience that "unless we learn the value of pooling those resources, unless we learn that until all of us can make it, then no one of us can make it."

The sermon-type speech lasted nearly two hours and frequently interrupted by applause from an audience of predominantly middle-class blacks, who five years ago would not have allowed a representative of the Nation of Islam to enter their convention. Until recently the religious order had maintained a posture of racial separatism.

The theme of the convention was "the power of unity." Berkeley G. Burrell, president of the National Business League, said one of the reasons for giving the Nation such prominence on the convention agenda "was that we, black entrepreneurs, keep talking about the power of unity and they're demonstrating it."

The speech of Minister Farrakhan was the highlight of the convention, which brought together shop operators, wholesalers, printers, accountants and building contractors, who discussed the state of black business in seminars, over meals and at evening hospitality parties. 

Key Issues Cited

Many participants interviewed expressed strong concern over a number of issues that confront the black business community. Among those mentioned most were the following:

¶The increase in interracial patronage of businesses during the last 10 years has drawn more black consumers to white establishments, the exceptions being wholesalers' printers and builders. But there are only a handful of these.

¶Federal involvement in developing black businesses has been insufficient and in many cases has missed the point of what black businesses need beyond the point of fiscal assistance.

¶Despite the increase in the number of black graduating from colleges in the business education fields, fewer are joining existing black firms or starting their own ventures. Instead, many are taking positions with larger white corporations, which offer more money in some cases but less influence in the decision-making process.

"There is a great fear among young blacks to venture out into business," said LeRoy W. Jeffries, president of Jeffries & Associates, Inc., a marketing consultant company based in Los Angeles.

Echoing sentiments of several other persons interviewed, Mr. Jeffries said younger blacks are unwilling to put in the time needed to be the boss, but would accept the responsibilities of a professional position with a major company, although the likelihood of that person reaching the top rank was almost nil.

On the subject of Federal assistance to minority businesses, primarily through the Small Business Administration and the office of Minority Business Enterprise, several persons charged both agencies had contributed to the failure of some black business ventures by under-capitalization and by the lack of follow-up counseling after loans are made.

During one of the sessions, which was led by officials from the S.B.A., Mr. Burrell criticized the O.M.B.E. for spending 95 per cent of its funds for starting new businesses, and only 5 per cent for helping existing companies.

Loan Cutback Cited

After the session Edward L. Whitmore, owner of an auto-parts supply company in Nashville and recipient of an S.B.A. loan several years ago charged that the agency had cut back his loan request to the point where it was almost counter-productive and then failed to provide the counseling service it promised once his loan had been paid off.

Another entrepreneur said the the S.B.A. had sent a consultant to help a business when the consultant itself was in bankruptcy.

Mr. Burrell, who is 55 and has been president of the league for 12 years, said the Government should concentrate its efforts on helping existing small businesses—black and white—stay in business, rather than pumping more time and money into new ventures, because of current general economic conditions.

U.S. Agency Study

A 1969 Department of Commerce survey identified 163,000 businesses in the nation as being owned by blacks. But only 38,000 of those had more than one employe.

"I don't think we need to start any new businesses at all," Mr. Burrell said. "The ones already established need to be strengthened."

The Technical Assistance Consortium for College Services, a Washington-based consulting service, working with the league, brought the deans and department heads of business schools at traditionally black colleges together for the convention for the first time also.
  Mahlon Griffith, who directed the effort on behalf of the consulting service, [[such?]] efforts would be [[made?]] through college classrooms [[to?]] persuade black to consider going to work for black companies upon finishing college to help offset the diminishing number of young blacks [[in?]] business.

[[image - black & white photograph of Berkeley G. Burrell, Louis Farrakhan and unidentified gentleman]]
[[credit]] The New York Times/Ron [[Sherman? [[credit]]
[[caption]]Berkeley G. Burrell, president of National Business League, with Minister Louis Farrakhan of Nation of Islam. They were at National Business League convention in Atlanta. [[/caption]]

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