Barriers to Small Business Development in Chapel Hill

In 2010 the Town Manager's office completed this report to assess concerns with small business development in Chapel Hill.

http://www.ci.chapel-hill.nc.us/Modules/ShowDocument.aspx?documentid=6503

Instead of repeating the specific complaints listed in this document I will instead address issues that may inadvertently deter African American entrepreneurs and business owners from attempting to begin their business in Chapel Hill. One of the main things that was cited as a con to opening a business in downtown Chapel Hill aside from parking and bureaucracy hurdles was the high cost and how it is comparably cheaper and in some ways easier to open a business in other places like Durham or Carrboro. Though the issues in this report are pertinent for all small businesses interested in developing in Chapel Hill it could be a particularly important factor for minority owned businesses who are historically at an economic disadvantage and may prefer setting up their business in other nearby downtown areas where it is more economically advantageous due to lower costs. These businesses may also feel more welcome in Durham where there is a greater number of minority and particularly African American-owned businesses.

Starting a Business in Downtown Chapel Hill

This is a manual describing the steps for starting a business in Downtown Chapel Hill.

http://www.downtownchapelhill.com/storage/development-pdfs/StartingNewBusiness.pdf

Minority Owned Businesses in Orange County

It took a lot of digging and searching to find this. It is meant to be a comprehensive list of the minority owned businesses in Orange County though the disclaimer at the beginning does state that some qualified businesses may have been unintentionally omitted. The publication of this list was sponsored by the "Ladies of Orange" Economics Committee and the Orange County Economic Development Commission. After much searching it is comforting to know that at least some effort has been made to document the minority owned businesses in the area. It appears that most of the businesses listed are in Hillsborough and many of the businesses researched by our group as black-owned in Chapel Hill were not listed.

Here is a list of the 9 minority owned businesses cited for Chapel Hill. It is interesting to note that none of them are located in downtown Chapel Hill closest to UNC's campus and the majority of them are located in the Midway District Center which is historically black and designed to attract & nurture minority owned businesses:

The Farrington Law Firm

Carmilla Farrington

109 N Graham Street suite 205

Chapel Hill, NC 27516

Atticus Development Group ,Inc. (Building Contractor)

Al Bowers, III

1608 Edgewood Rd

Chapel Hill NC 27517

Freedom's Drum Marketing and Consulting

Shawn Alvarez

109 N. Graham St suite 101

Chapel Hill, NC 27516

Calvin Brown (Financial Consultant)

Ameriprise Financial

100 Europa Dr. Suite 280

Chapel Hill, NC 27514

Harrison's Creative Designs (Florist)

Bernice Harrison

109 N Graham St. Suite 109B

Chapel Hill, NC 27516

Markim Handicrafts (Imported from Ghana)

Mary Mutua

109 N Graham St Suite 109A

Chapel Hill, NC 27516

Salon FefineMENT (Nail Salon/Spa)

Arminta Foushee

109 N Graham St Suite 203

Chapel Hill, NC 27516

Cynthia's Tailor Shop

Cynthia Lennon

122 W Franklin St. Suite 104B

University Square

Chapel Hill, NC 27516

Airport & In-Town Taxi

Dawad Norville & LaLesha Velez-Norville

109 N Graham St. Suite 105

Chapel Hill, NC 27516

http://www.co.orange.nc.us/ecodev/documents/MINORITYBIZ.pdf

Midway Business Center - Chapel Hill-Carrboro Business Incubation Center

"Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through and array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. Successful completion of a business incubation program increases the likelihood that a start-up company will stay in business for the long term." (http://en.wikipedia.org/wiki/Business_incubator)

Business incubators like the Midway Business Center do require and application and do not just accept anyone. In Midway's case they require that eligble applicants live or work in Orange County and at least 51% of employees of each business must be of households earning less than 80% of the median area income. This business incubator program is aimed at helping new businesses become strong local employers. It serves a range of businesses including retail, office-based companies, service-based companies, etc. It is of special interest to our project because it is aimed at the promotion of redeveloping the Midway Business District which is a historically black business district in Orange County.

Public records show that on February 28, 1998, the Town of Chapel Hill entered into a Performance Agreement with emPOWERment in which they could use $150,000 of Community Development funds to purchase the property where the Midway Business Center is now located. On February 28, 2000 the Town of Chapel Hill Council authorized an additional $60,120 of Community Development funds to assist with the construction of the Midway Business Center. The center opened in 2000.

The Midway Business District is a historically black business district connecting Chapel Hill and Carrboro. It is located on North Graham Street.

The Midway Business Center is Chapel Hill- Carrboro's first business incubator and it is a part of EmPOWERment Inc. (an organization that promotes community development through affordable housing, advocacy, community development and grassroots economic development). EmPOWERment has established 3 primary goals for the Midway Business Center:

1. Revitalize the Midway Business District
2. Promote entrepreneurship in economically disadvantaged communities

3. Create quality jobs for Orange County residents

According to EmPOWERment, the center targets women and minority owned businesses and other new start up companies with growth potential.

Sources:

http://townhall.townofchapelhill.org/agendas/ca050228/4d-Request%20from%20EmPOWERment,%20Inc.%20to%20Modify%20its%20Performance%20Agreement%20Regarding%20Operation%20of%20the%20Midway%20Business%20Center.htm

The Curse of 157 East Rosemary Street??

So, I'm sure a lot of people know where 157 East Rosemary Street is...AND what is housed there. (At least until the name changes next week...sarcasm intended)

This area current houses a bar/dancehall simply called 157 East: a "kick ass bar located just off Franklin Street in the heart of Chapel Hill. Boasting two full service bars and 3200 square feet of usable space, we are the perfect location for private parties and benefits. Our full stage and audio/lighting equipment allow us to offer great live music in the form of full bands, singer songwriters, and DJs. With seven flat screen televisions, you are sure to find us an excellent choice come game day! Some of our additional features include comfortable couches, Wii, Playstation 3, etc." (as quoted by BarflyChapelHill.com) And this venue also can also be rented out by all the UNC Greeks, organizations and party promoting groups for weekend parties.

Now how does this relate to Black Chapel Hill?

Whichever club is at 157 East Rosemary Street this week is normally a club that plays or host musical tastes and parties that relate to the Black student populations' social needs from the surrounding colleges. (UNC, NCCU, Duke, Shaw, St. Augustine, etc.) But like a lot of nightclubs that appeal to the black population, this area just can NOT get away from the stigma of not having the staying power and longevity of the other bars/clubs in Chapel Hill like Players, East End, and The Library.

In the past four years, the venue has been called several different names and been out of business for months at a time. In 2007, the club was called Blend Nightclub and Lounge and was a club that wasn't the greatest looking like the area but with the intention of being a jazz & blues venue was supposed to be the place to "mix it up". However, the next year the club was closed and the area was cleared out. Then, the area became Boogaloo Green Ultra Lounge with a new bar, new stage and updated technology for a great club experience. The club even hosted Raheem Devaughn in a performance or two. However, as soon as it came, Boogaloo was just another club that didn't make it at 157 East Rosemary. Currently, 157 East is still going strong to be club with yet another new look and a promise to be a sports bar, which would allow it to appeal to even more people.

What's The Issue??

Any venue at this location barely lasts past the two year mark. The first issue that has to be noticed is that area is a breeding ground for crime. It's not well lit, it could potentially be "sketchy" and it's not as policed as the other venues. Listed as one of the top 100 places to get arrested in Chapel Hill at Number 34, the area has had crimes from trespassing to assault with a deadly weapon. This area is surrounded by the Number 6, Number 10 and Number 32 places to get arrested as well. So, crime keeps people from coming and therefore, the business fails and then it has to close. The second issue is that the club has great competition from other clubs and bars including Hell/Chapel Hill Underground which is located below the 157 East venue and Bub O' Malley's which is located above the venue. Not to mention, the traditional favorites as previously mentioned.

Investigative Work:

Calls were made to the establishment several times but no calls were returned. Also, the use of Google and talking to other students and a few party promoters help to get some of the information. The calls will still continue and a survey will be posted up. If interested, stay tuned for a link for the survey.

Eric's Barbershop

Official Name: Tar Heel Barbershop

The business began in June 2009.

Eric opened his own barbershop because it was a dream of his, after he earned his barber's license and became a professional barber. Some of the problems/disadvantages that he believes are associated with Black-owned businesses in this area, are that there isn't a very big Black
population in Chapel Hill and many Black-owned businesses in Chapel Hill only specialize in products catered to the Black public and therefore they may tend to struggle a little more than white-owned businesses. Eric said that some of the causes of problems for Black-owned businesses, just in the sense from a barbershop perspective, are the bad stigmas of drug involvement and other illegal activity that are often associated with Black barbershops, therefore putting them at somewhat of a disadvantage in comparison with white-owned barbershops because they don't have those negative stereotypes or stigmas about them and therefore don't have to worry about the backlash they may ensue from that.

I asked him if he faced any abnormal/racially biased opposition or tension in finding a location/opening his business and he said that he didn't. Instead that he really likes his location and receives a steady bit of customers both walking along Rosemary St. and passing through Rosemary on their way to Franklin St. Eric said that he has done many things to combat the possible stigmas associated with Black barbershops by creating a "comfortable" environment
for all customers of all races. He alluded to his time while working in Campus Barbershop and how they lost some business to white customers and other races because the shop sort of personified a "hood mentality" or what not. Therefore, he implemented rules and other guidelines in his shop that made it somewhat neutral in the aspect of race. Eric mentions that a lot of his clientele are UNC students, along with other locals/ Black Chapel Hillians that he has built up throughout his years of being a barber in this area. Also, he states that he has a decent
white clientele of which he provides them with a great service for a cheaper price than they would pay even at white barbershops.

Mama Dips

One of the most successful present-day African-American business owners in Chapel Hill, Mama Dip stands strong and tall in her six foot, one inch frame. Getting her nickname from her long arms as a young child, she would reach the bottom of the barrel, to fetch water, as her siblings watched in amazement.

From her book produced in 1999 entitled, Mama Dip’s Kitchen, Mildred Cotton Council aka Mama Dip describes her childhood growing up not in Chapel Hill, but in a rural North Carolina town. After her mother died when she was two, Mama Dip and her older six siblings assisted her father in the fields as a sharecropper. Although her family wasn’t well-off, Mama Dip states that she didn’t feel as if she was poor and she grew closer with her family when food was scarce because they all had to share the little that they had.

Furthermore, as she grew older and her siblings worked in the fields, Mama Dip’s father would ask her to cook for her family. Through “dump cooking”, she made breakfast, lunch, and dinner for her family daily.

**dump cooking** measuring the ingredients by instinct and not with a measuring cup and also cooking off memory and not with recipes.

The move to Chapel Hill:

“When papa made up his mind that we would move to Chapel Hill, I was really upset because we would come to town and see these girls in bobby socks, pleated skirts, sweaters and magnolias and shiny combs in their hair. I couldn’t see myself sitting in a classroom with them rich looking girls with lipstick on their lips.”

Due to WWII, Mama Dip’s father couldn’t survive off of their family farm so they all migrated to Chapel Hill where she attended Beauty school and worked as a cook in one of UNC’s dorms. Trying to feed her seven children and still be a wife to her husband Joe, Mama Dip assisted her mother-in-law in her catering business, Bill’s Barbacue, and this is where she became business savvy.

An offer by a local real estate agent to take over a restaurant in Chapel Hill that was failing was Mama Dip’s only gateway to spread her good food to the local community. In 1976, and with only $64 in her pocket, Mama Dip began her own business and made $135 on her first day. To save money, she employed her children.

Mama Dip is an example of how African-Americans have advanced, despite all the strong holds and obstacles due to racism. She has been on Good Morning America, on the Food Network, and in the magazine Southern Living.

Citation:

- Baker-Clark, Charles Allen. Profiles from the kitchen: what great cooks have taught us about ourselves and our food. University Press of Kentucky, 2006. Print.

- Council, Mildred. Mama Dip's Kitchen. The University of North Carolina Press, 1999. Print.

What ever happened to Aladdin’s?

In the beginning…

Aladdin’s Grill and Catering was a restaurant located on 153 E. Franklin St., where Artichoke and Basil now stands. A transformation from an authentic Turkish restaurant by day and hookah bar by night made the establishment extremely popular upon its opening in September of 2005. With affordable exotic food and a variety of hookah flavors, Aladdin’s brought a new Arabian identity to Chapel Hill. On opening night, the official transformation was marked by a belly dancing performance by “Russian belly dancing extraordinaire, Sasha”, a crowd favorite (DTH, 2005). This new enticing restaurant brought diversity and fun to the mainstream, white-collard Chapel Hill.

Why was it exciting?

Aladdin’s was an exciting atmosphere for students because not only did it place hookah on the map, being one of the first bars to offer hookah in Chapel Hill, but it also was an atmosphere where all races on UNC’s campus could comfortably party. Christian, UNC alum c/o 2010, noted that in the beginning, Aladdin’s night crowd was almost proportionate to the student body population. It joined white frats and sororities, with the Hispanic and black communities, while also drawing the attention of Asian and Middle-Eastern students. Because, the staffing was extremely friendly and made friends with many students, Aladdin’s became a place where the students really created their own partying environment. Also, because of the nature of hookah, which utilizes a cleaner type of tobacco, the club would fill with lavish fruit filled scents throughout the night. Students would order a Hookah for the table, with as many pipes as necessary, request songs from the dj, and dance on tabletops until 2:00AM. Students Malory, UNC alum c/o 2008, and Christian, c/o 2010, recall dancing and with manager Debora, and feeling at home in the unique environment that Aladdin’s created. It later obtained its ABC license, which allowed it sell alcohol to those of age, further intensifying the experience.

The ALE, Chapel Hill Police…

For those who don’t know, the Town Chapel Hill Police Department enforces a state wide policy of Alcohol and Law Enforcement (ALE). These undercover cops (UC’s) pose as civilians and monitor underage drinking and other ABC laws for businesses within the area. If caught either administering or drinking in violation of the law, the ALE can dispense drinking tickets to attendees and business owners. Several tickets may result in the suspension or removal of a liquor license and even the demise of a business.

The beginning of the end…

As Aladdin’s gained more popularity it started to attract a wider audience including black students and civilians from the Triangle area. Being that several of the nightclubs attracting mostly African American crowds in Chapel Hill were closing, Avalon in particular, more black students and civilians considered Aladdin’s the new hotspot. With this burst of popularity in 2006, Aladdin’s also attracted more attention from Chapel Hill police and the ALE. Christian, c/0 2010, noted that ALE was always a problem at Aladdin’s. Being that most students had great relations with the owners and managers of their favorite spot, underage drinking was common. Not only did the ALE attention halt drinking fun, but it also altered the mood of the entire club. Although fights have been reported through local newspapers, alumni most distinctly remember the hovering actions of the ALE than any violence that took place at the club.

Black Student/Civilian Relations:

It has been reported that several fights broke out at Aladdin’s night club. One fight began between two civilians ending in the arrested of 21-year old African American male charged of “disorderly conduct, resisting arrest and assault on an officer” (DTH, 2006).

Feeling the pressure:

As the police attention around Aladdin’s nightlife increased, the owners may have felt pressured to alter the appearance of the club. In 2006, it started to implement a strict dress code restricting urban clothing such as “baggy” jeans, jerseys and baseball caps. Being that these dress code restrictions heavily suggest the type of crowd the nightclub wanted to exclude, Aladdin’s began to fall in line with the other, mainly white clubs on Franklin St. Alumni Christian states that he felt the dress code came as direct response to “cops breathing down their neck”.

The end..

At one point the nightclub lost its liquor license but it was then regained. It was noted by the current owner at 153 E. Franklin St. that excessive drinking tickets eventually lead to the establishment’s demise. Aladdin’s Grill and Catering closed in 2007 after only being open for 2 years.

Sources:

The Daily Tarheel Archives

Interviews from Carolina Alum

Interview of the current owner at 153 E. Franklin St.

By: Karli Jones

Stephanie's African Hair Braiding

Background:

· Worked in a shop for 9 years

· Opened her own business 3 years ago

· No longer open because she just had a baby and she’s going to school for her cosmetology license

· She still does hair from her home and plans to open up again once she finishes school and her child gets older

Questions for Stephanie:

1. Do you feel being a black owned business makes a difference compared to other businesses in the Chapel Hill area?

2. Have you ever had problems generating business, if so do you think it’s because you’re a black owned business?

3. Was it hard to open a hair business in Chapel Hill and if so do you think race had anything to do with it?

4. Are your customers mostly from Chapel Hill or elsewhere?

5. Do you think your location affects your business?

Questions for Students:

1. Do you think living in Chapel Hill influences where you get your hair done and why?

2. Have you ever heard of Stephanie’s African Hair Braiding?

3. Where do you get your hair done and why?

4. Was it hard finding places to get your hair done during your time here at Carolina?

5. Do you think it would be hard to open a business in Chapel Hill that caters to black people’s hair? Why or why not?

6. Would you ever go to a hair shop in Chapel Hill that caters to whites? Why or why not?

"Aye Where the Party At?" - A Look at Black Night Clubs in Chapel Hill

      136 East Rosemary

  

For many years, there have been clubs in Chapel Hill that have catered to a majority Black patronage. These clubs primarily features a live DJ, who spins top 40 Dance,  Hip Hop, Rap, Reggae, Go-Go, Baltimore club music, and etc. 

According to the Carolina Journalism Network,136 East Rosemary has been the home to many night clubs and bars for over 20 years. The most recent Black night clubs at this location was Club Chi Hi,  which closed in 2006 and then turned into Visions night club in 2007. Much could not be found on Club Chi Hi as its old website was closed and the numbers are now disconnected. However, Visions night club, was made notorious for its shooting in October 2007, when one patron opened fire, shooting and injuring two security guards and four bar patrons. This shooting occurred just a year after another shooting had occurred at another Black Night club, Avalon, down the street in the summer of 2006.  Similar to Avalon, Visions nightclub management announced its closing just days following the incident.  

 However, in February 2011, The Daily Tar Heel announced the space reopening. Junior, Richard Sergo, stated to the newspaper that he suggested opening a night club in that space to his family, who are now the owners of Pulse Night Club at this location. This night club now features a live DJ that plays dance, house, techno, and trance music. The club attracts a very mixed crowd. Since its Feb opening, Chapel Hill Police has been called to the location once for an alcohol overdose, but only time will tell to the sustainability of the club.

The Facts

This location has had several incidents ranging from misdemeanor offenses such as usage of a fake identification card, disorderly conduct, and petty larceny, to more serious offenses such as assault with a deadly weapon, sexual assault, and fighting. According to WRAL, the police had been called to Visions, members-only club, 30 times between January 2007 to October 2007. Public records indicate that compared to the local bars and clubs, such as Good Fellows and Players Night Club ,Visions has had more serious offenses, whereas the most serious offense between Good Fellows and Players is simple assault, which occurred in 2004 and assault on Leo (a security guard), which occurred in 2005. Good Fellows has only had two incidences, both were minor offenses. 

However, La Residence, a local bar, on Rosemary Street has had several minor offenses occur since 2001 and a serious offense, assault with a deadly weapon, that occurred in March of this year. 

What do these facts mean?

Not sure. A lot of the people that could provide some good insight would not comment, could not be reached to comment, or did not return any of my calls. 

However,  according to an WRAL news report, many of the downtown business owners commented in 2007 after the shooting that they are worried about their own businesses because of the amount of violence that seems to be connected with the downtown nightclub scene. Several people cited that a number of reasons could be the cause of increased violence and disturbances at Black Chapel Hill nightclubs, which results in there lack of sustainability. Some people argued that the type of music played in these clubs incites violence when alcohol is involved. Some suggested that there are tensions between Black Chapel Hillians and Black UNC student club-goers. In 2007, WRAL claimed that these problems might be affiliated with local gangs in the area that attend these clubs.  Outside of club incidences, these clubs seem to have several changes in management, resulting in frequent Black nightclub openings and closings.