Social media campaigns urged consumers to buy goods and services from Black-owned businesses after the killing of an unarmed Black man by a white Minneapolis police officer in May sparked protests against racism and police brutality.
But several African American business owners told Arkansas Business that they saw little, if any, boost in sales.
“We had a little surge after the George Floyd incident, and it’s kind of tapered off since then,” said Donnie Lindsey, who owns Lindsey’s Hospitality House in North Little Rock with his wife, Eleanor. “It’s been up and down with the coronavirus and everything just mixed together. So we’ve just been riding a big roller coaster, and I want to get off now.”
Donnie Lindsey said he didn’t draw any attention to the fact that his company is minority-owned. With about 10 employees, Lindsey’s Hospitality House is a barbecue restaurant and offers catering and a banquet facility. It is tied with eight other companies at No. 17 on this week’s list of the state’s largest minority-owned companies.
“Our customer base has always been diverse,” he said. “We try to cater to all people — black, white, yellow, brown — as well as different political positions and all of the genders.”
Korry Garrett shrugged off the idea that a new social consciousness had meant more business for his Sandstone Real Estate Group in Conway. “Not at all,” he said. “I think the business we have is business we would have gotten anyway.” Corporate statements of solidarity with the Black community struck him as “more of a publicity thing.”
Eight of Sandstone’s 15 employees are Black, and the remaining seven are white, Garrett said. Like the Lindseys, he wants to do business with all races. This, he said, is an economic reality in the real estate business: “The Caucasians have most of the wealth. The dollar is green.”
Garrett said he does seek out minority-owned businesses for Sandstone to patronize. It’s easier in some categories than others.
“Insurance, it’s pretty easy to find a minority insurance agent. Housekeeping. Title companies — it’s hard for me to find a minority-owned title company. And most of the loan officers tend to be Caucasian. The dudes — I’m going to say that 95% of the commercial loan officers are white males.”
‘Speed Dating’
Matching businesses up with vendors owned by women and minorities is the goal of the annual matchmaking event that the Arkansas Economic Development Commission’s Small, Minority & Women-Owned Business Division will host on Sept. 17. The event will be held online this year.
“It’s kind of like speed dating, where companies can set up an appointment with procurement officials,” said Patricia Brown, director of Minority & Women-Owned Business Enterprise at the AEDC.
Participants in the free event will have a chance to meet with business owners and government buyers.
The AEDC certifies minority-owned business enterprises, and its directory was the starting point for this week’s list of the largest such companies. Companies on the list were surveyed by Arkansas Business, and those that responded were eligible for the list. The 60 respondents that had more than two employees were included in print.
The state of Arkansas has a goal that 15% of the total amount spent on state-funded and state-directed public construction programs and on goods and services each fiscal year be paid to minority businesses. The percentage breakdowns are 10% for minority businesses, which includes 2% for service-disabled veteran-owned minority businesses; and 5% for woman-owned businesses.
For the fiscal year that ended June 30, state agencies spent $26.8 million, or 13% of their total amount spent on goods and services, with minority-owned businesses, according to a report released last week by the AEDC.
That was an improvement from the fiscal year that ended in mid-2019, when state agencies spent $22.3 million, or 6.6%, on goods and services from minority-owned businesses.
That fiscal year, the total budget for state agencies to spend on goods and services was $339.4 million. For the fiscal year that ended on June 30, 2020, that budget had been slashed to $205.3 million.
COVID-19
The effects of COVID-19 have hurt minority-owned businesses and small businesses, Brown said. “We’re hoping that they can recover,” she said.
But not all businesses have seen a drop in revenue because of COVID-19.
Marlon Haynes owns 21st Century Janitorial Inc. of Little Rock, No. 2 on the list of minority-owned companies. He said he’s seen an increase in business of about 30% in recent months. He doesn’t think the surge in business is because his company is Black-owned; instead, he believes clients have needed more one-stop commercial cleaning services during the pandemic.
He said his customers don’t care if his company is a minority-owned business. “They just want to know that their needs are taken care of,” Haynes said. “So that’s kind of been my philosophy since I started the company. We didn’t want to just be, per se, just a minority business, but we are a company out there that provides services.”
Mark Mosby, though, hasn’t seen a surge in his real estate and consulting business, Mosby Solutions LLC of Hazen, because of COVID-19 or because of his skin color.
“I have experienced a lot of people not being able to make their rent payments and use the COVID as the reason for that,” he said.
Founded in 2002, Mosby Solutions buys residential properties, renovates them and rents them. Mosby has about 50 properties and, with 10 employees, is tied with Lindsey’s at No. 17 on this week’s list.
Lindsey’s also has seen a drop in business because of COVID.
It’s had more than 20 or 30 cancelations for the year for its banquet facility, said Donnie Lindsey. “We’re still doing a little bit of catering, … and that has been cut to about probably 75% of what we would have done in the past,” he said.
Lindsey’s restaurant business “has been pretty good” since restaurants were allowed to reopen on May 11, but it had to limit seating and keep tables 10 feet apart. “We’re still only at 30% capacity,” Lindsey said.
Inventory Shortage
Garrett, of Sandstone Realty Group, said his is an industry in which clients tend to work with agents of the same race — probably 70% of the time, he said. But when you’ve got the right house for sale, it doesn’t seem to matter.
And Sandstone could be doing more business if there were more houses to sell — especially the moderately priced ones. “It’s most definitely a seller’s market,” Garrett said. “A nice home under $250,000 is going to fly off the market. There’s a shortage of inventory.”
State Agency Spending With Minority-Owned Businesses
For fiscal year ended June 30, 2020
MOST SPENT
Finance & Administration, Child Support*
Budget: $1,377,372
15% Goal: $206,606
Actual Spending: $6,187,663
Percentage of Goal: 2994.91%
Percentage of Budget: 449.24%
Parks & Tourism
Budget: $23,491,170
15% Goal: $3,523,675
Actual Spending: $1,334,923
Percentage of Goal: 37.88%
Percentage of Budget: 5.68%
Correction
Budget: $13,560,359
15% Goal: $2,034,054
Actual Spending: $802,544
Percentage of Goal: 39.46%
Percentage of Budget: 5.92%
University of Arkansas at Fort Smith
Budget: $36,795,783
15% Goal: $5,519,367
Actual Spending: $710,623
Percentage of Goal: 12.88%
Percentage of Budget: 1.93%
University of Arkansas at Pine Bluff
Budget: $10,865,388
15% Goal: $1,629,808
Actual Spending: $510,290
Percentage of Goal: 31.31%
Percentage of Budget: 4.70%
Elementary & Secondary Education
Budget: $7,632,249
15% Goal: $1,144,837
Actual Spending: $374,942
Percentage of Goal: 32.75%
Percentage of Budget: 4.91%
Finance & Administration, Revenue Services
Budget: $6,717,500
15% Goal: $1,007,625
Actual Spending: $322,858
Percentage of Goal: 32.04%
Percentage of Budget: 4.81%
Arkansas State University at Jonesboro
Budget: $4,534,557
15% Goal: $680,183
Actual Spending: $268,255
Percentage of Goal: 39.44%
Percentage of Budget: 5.92%
Rehabilitation Services
Budget: $5,131,260
15% Goal: $769,689
Actual Spending: $235,113
Percentage of Goal: 30.55%
Percentage of Budget: 4.58%
HIGHEST PERCENT OF BUDGET SPENT
Finance & Administration, Child Support*
Budget: $1,377,372
15% Goal: $206,606
Actual Spending: $6,187,663
Percentage of Goal: 2994.91%
Percentage of Budget: 449.24%
Public Service Commission
Budget: $115,925
15% Goal: $17,389
Actual Spending: $64,514
Percentage of Goal: 371.01%
Percentage of Budget: 55.65%
State Bank
Budget: $33,578
15% Goal: $5,037
Actual Spending: $18,631
Percentage of Goal: 369.91%
Percentage of Budget: 55.49%
Alcoholic Beverage Control
Budget: $19,890
15% Goal: $2,984
Actual Spending: $9,480
Percentage of Goal: 317.74%
Percentage of Budget: 47.66%
South Arkansas Community College
Budget: $600,000
15% Goal: $90,000
Actual Spending: $168,860
Percentage of Goal: 187.62%
Percentage of Budget: 28.14%
State Library
Budget: $23,008
15% Goal: $3,451
Actual Spending: $6,400
Percentage of Goal: 185.44%
Percentage of Budget: 27.82%
Ozarka College, Melbourne
Budget: $195,200
15% Goal: $29,280
Actual Spending: $32,671
Percentage of Goal: 111.58%
Percentage of Budget: 16.74%
Real Estate Commission
Budget: $94,100
15% Goal: $14,115
Actual Spending: $13,493
Percentage of Goal: 95.59%
Percentage of Budget: 14.34%
*The bulk of the spending went to a minority-owned technology company
Notes: The state of Arkansas has a goal that 15% of the total amount spent on state-funded and state-directed public construction programs and on goods and services for the state each fiscal year is paid to minority businesses. The percentage breakdown are: 10% for minority businesses, which includes 2% for service-disabled veteran-owned minority businesses, and 5% for women-owned businesses. Source: Arkansas Economic Development Commission
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