The age and permanence of a firm does not influence its success so much as its business methods. And an index of its efficiency in this respect is its methods of accounting. These are shown in the means used for keeping accounts Negro business men were asked whether or not they used ledger, journal, cash-book, day-book, or other records. Some enterprises such as grocery stores, would have need of a mechanical register. If a firm had one, it was inspected. Facts about 49 establishments were not available. Of these, 35 firms had no means of keeping accounts, other than the memories of those running the place. These were, however, very small enterprises. Of the 260 remaining, 60, or 23 per cent, kept a ledger, 122, or 46.9 per cent, kept a cash-book, and 33.5 per cent had day-books. Thus showing that 37 more firms kept day-books than kept ledgers, and 62 more firms kept cash-books than ledgers. Of the 260, 28 had mechanical cash registers and 64 had some form of record in addition to or other than those named. In a phrase, the Negro business man is learning the methods of the business world in keeping track of his business affairs, though in most cases they are small. Table XXVII gives the details on this point. (See [p. 121.])

Table XXVII. Means for Keeping Accounts used by 309 Negro Business Enterprises, Manhattan, 1909.

Class of establishment.Means used in accounting by Negro business enterprises.
Ledger.Journal.Cash-book.Day-book.Mechanical cash-register.Other records.Unknown.Totals.
Yes.No.Yes.No.Yes.No.Yes.No.Yes.No.Yes.No.
Barbershops243—4523227381035243550
Brokers13331316—88—16511—16
Coal, wood and ice—1311221176—13112619
Dressmaking and millinery17—85317—817—8
Employment agencies311212104410—1414——14
Express and moving vans—10—104655—1019212
Groceries102533212232114728233136
Hairdressing, etc.14—51432—55—38
Hotels and lodging houses46—103746—1028717
Pool and billiard rooms19—10552855—10—10
Printers23—532—5—523—5
Restaurants and lunch rooms210—1284111—12—121426
Saloons and cafés3214232341—5—5
Tailoring, pressing, etc.219219714813—21714324
Undertakers831105656—1111——11
Miscellaneous83223816249312381129848
Total602001524512213887173282326419649309

4. CREDIT RELATIONSHIPS

The manner and care with which a firm keeps record of the business it transacts is closely connected with its credit relations with the buying and selling community. And both these determine to a large extent its business operations. Considerable light was thrown upon the credit relations of Negro enterprises by finding out, wherever possible, whether a firm gave credit occasionally or habitually to customers and whether it received credit from suppliers. Naturally, many proprietors would not give any reply to such an inquiry, and especially about their credit standing with wholesale firms. On such a delicate point, however, information about the giving of credit was secured from 205 firms, and about the receiving of credit from 94 firms. Of the 205 that furnished statements on the matter of giving credit, 87, or 42.4 per cent, occasionally, and 69, or 33.6 per cent, habitually had given credit to customers, while 49, or 23.9 per cent, did not allow credit. When asked about their credit relations with suppliers, 47 replied that they did receive credit, and 47 that they did not receive any; and 215 gave no reply on this point.

5. THE PURCHASING PUBLIC

Length of time established, length of location at an address, methods of accounting and the credit relations play no more important a part in the efforts of Negroes to build up their business enterprises than do the subtle whims and prejudices of the community. This is shown first by the location of nearly all the enterprises in Negro neighborhoods. Of all the 309 enterprises, 288 were located either within or upon the border of the Negro districts. It may be expected, of course, that Negroes will look to their own people first for their patronage, but they should be allowed to cater to the public at large, especially in a cosmopolitan commercial center like New York. In the case of real estate brokers, this is partly true and has grown partly out of the Negro broker's ability to handle more successfully than others properties tenanted by Negroes. It is not generally the case in other lines of business, however, as the testimony of many Negro business men shows.