Karibu’s Closing Reveals More
By Ty Martin
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Local teacher Dorothea Chapel and other bargain hunters shuffle through the crowded aisles of Karibu Books, claiming the last few hardbacks and novels left on almost bare shelves. Today is the final day of business for this store, the last of the nation’s largest black-owned bookstore chain. Many customers had no idea Karibu Books was closing. Even fewer probably realize that Karibu’s closing is part of a trend in the black community.
At one point Karibu boasted six stores. But after fifteen years Karibu has now folded into a trend: According to federal government research, black-owned small businesses fail at higher rates than any other minority-owned firms in the country.
Dr. Ying Lowery, a senior economist with the Small Business Administration, says this is called the “survival rate.” She says a series of factors can account for the low survival rate of these businesses. The most telling, however, is that most black businesses lag behind in capital.
This capital “is not only what we call fiscal capital — assets, or equipment, or money,” Dr. Lowery explains. “But also it includes human capital — education, experience… And the third part is social capital.”
In other words, success in the small business world is closely related to family cohesion. According to census data, the African American community lacks many of these vital links because of its high number of absent parents, unwed mothers, and failed marriages. This especially sobering reality for blacks in America is often reflected in the fate of their small businesses.
Simba Sana, co-founder and CEO of Karibu Books, can attest to these challenges. “Based on my experience and meeting other entrepreneurs, I would agree with that,” he says. “The failure of Karibu is connected to issues in the black community.”
Sana says conflicts with loved ones and his business partner forced him to close the book on Karibu. He is hesitant to go into detail about his family troubles, but now he’s turning the page on a new chapter in his life.
“We have to somehow learn to feel good about ourselves so that we can put our best foot forward in the world,” he says.
A Hopeful Future
It may take time to correct this trend in the black community, but experts see signs of progress. Dr. Lowery says that despite the high rate of failure among black businesses, the African American entrepreneurial spirit is thriving.
The number of black-owned businesses is rising faster than other small businesses, “which is a good sign,” she says. “That means, just like sports, if you have more people participate, big stars come out.”
And more stars lead to improved social capital, which ultimately benefits the black community.
Back at Karibu a few regular customers pace in disbelief. One man stands motionless — grim as if offering the store’s last rites.
“This is it, man. I can’t believe after today there’s going to be no more Karibu. This is hard,” he says.
People here say they’re worried because it’s a great loss to their community. Customer Dwan Little is clutching a Walter Mosley book — the last one from the shelves.
“It’s just a loss, that’s all. And any loss is sad,” she says.
The reaction is humbling for CEO Simba Sana, who says his customers have become a surrogate family. But despite his loss, Sana is optimistic.
“This to me is not a sad day,” he says. “I do hope to stay in bookselling and I hope something comes back that will be bigger and better than what we’ve had.”
Tags: books, business, DC, tell me more, ty martin
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