Introduction
The
global spread of a novel coronavirus disease, widely known as COVID-19, took
the world by surprise in early 2020. Many companies were forced to change their
business models in order to adapt to the unprecedented challenges resulting
from the pandemic. When the United States reopened, questions arose surrounding
workforce culture. Topics such as remote work policies and childcare became top
priorities for employees at all levels. While businesses consider how to address
these concerns, what has become clear is the idea that “getting back to normal”
no longer resonates with American workers.[1]
Indeed, low-paying jobs, including those in retail and hospitality industries, have
had to resort to various measures to attract and retain talent.[2]
Officials are also paying attention to changes in employees’ attitudes. In June
2021, the president of the U.S. Chamber of Commerce stated that “[t]he worker
shortage is real — and it's getting worse by the day.”[3]
A
resistance to low-paying jobs and inhospitable work environments has therefore
developed. Not only are employees rejecting low wages and inflexible workplace policies,
but they are also discarding traditional notions of how companies do business.
The old mantra of maximizing profits and minimizing costs at the expense of
workers is running its course. A call for different and innovative enterprise
strategies have taken shape. One such strategy is the community economic development
framework, better known as CED. Although there is no singular definition of CED,
“[i]t has been described as a strategy that includes a wide range of economic
activities and programs for developing low-income communities.”[4]
CED aims to go beyond just economic development.[5]
It helps to create sustainable businesses by focusing on economic justice,
equitable development, and other wealth-building tools. In essence, CED values
worker empowerment.
Cutz
Lounge
Cutz
Lounge, a barbershop in the Grandmont Rosedale section of Northwest Detroit, demonstrates
the effectiveness and importance of community economic development. Early this
fall, student-attorneys in the Clinic had the opportunity to visit Cutz Lounge
and speak with Dante Williams, founder, and owner of the “grooming shop.” Mr.
Williams spoke candidly about his background and his business ethics. He noted
that his lounge was the culmination of years of hard work and perseverance. He
began cutting hair at a young age, following in his father’s footsteps. Born
and raised in Inkster, Michigan, Mr. Williams relocated to Detroit where he
eventually opened up shop. For him, Cutz Lounge is “much more than just a
barbershop.” It is a staple within his community, “changing the world one
haircut at a time.” When asked about the pandemic, Mr. Williams expressed how
difficult it was to remain in operation. In March 2020, he was forced to shut
down for several months and could not afford to maintain his staff. He, like
many other Black business owners, experienced the devasting consequences of the
virus.[1]
Racial disparities in “wealth, poverty, employment, housing, health status, [and]
access to health care” all contributed to the disproportionate impact of
COVID-19 on Black and other non-white communities.[2]
Mr. Williams credits federal assistance from the Coronavirus Aid, Relief, and
Economic Security Act in helping him keep his doors open.
In the summer of 2020, Mr. Williams reopened the shop. He mentioned that several of his employees who were forced to find work elsewhere during the lockdown, returned to Cutz Lounge. Mr. Williams believes part of their reason for coming back is because of what the enterprise embodies. Among other things, Cutz Lounge encourages collaboration between businesses and local residents with the hope that ideas will be shared to improve the community. The shop also serves as a physical space for meetings and community-building events. During our hour-long visit, Mr. Williams discussed his vision to establish a pop-up restaurant in another wing of the building. Chefs will be able to utilize the space to test out their menus on Cutz Lounge customers. Mr. Williams stated that the pop-up shop is for up-and-coming restaurateurs that do not have the means to buy or rent property or pay for overhead costs. Customers who visit the shop can receive their scheduled service and also grab a bite to eat. He considers it a win-win for all of those involved.
I would agree. In addition to providing employment and a safe and comfortable space for visitors, Cutz Lounge is revitalizing its community with the input of local residents. The shop captures the true spirit of Detroit, including its ability to move forward and to rebuild time and time again. Community economic development is at the heart of how it does business. Companies across the country should take note. Equitable and creative enterprises are needed now more than ever.
By Dashaya Foreman
[1] See Kemberley Washington, Covid-19
Has Had a Disproportionate Financial Impact on Black Small Businesses, Forbes Advisor (June 3, 2021, 11:06 AM),
https://www.forbes.com/advisor/personal-finance/covid19-financial-impact-on-black-businesses/.
[2] Carla Baranauckas & Samuel
Stebbins, Minorities Are Disproportionately Affected by COVID-19. This Is
How It Varies by State., 24/7 Wall
Street (July 21, 2020, 7:00 AM),
https://www.usatoday.com/story/money/2020/07/21/how-covid-19-has-disproportionately-affected-minority-communities-in-every-state/41764053/.
[1] Christine Romans, American Workers
Don't Want to Go Back to Normal, and That Makes Sense, CNN Business (June 22, 2021, 11:04 AM), https://www.cnn.com/2021/06/22/economy/job-shortage-workers/index.html.
[2] Id.
[3] Alison Kosik, America's Worker Shortage
Is Real and Getting Worse by the Day, US Chamber CEO Says, CNN Business (June 1, 2021, 9:56 AM), https://www.cnn.com/2021/06/01/economy/worker-shortage-us-chamber-of-commerce/index.html.
[4] Roger A. Clay Jr. & Susan R.
Jones, A Brief History of Community Economic Development, 18 J. Affordable Hous. & Cmty. Dev. L. 257
(2009).
[5] Id.