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ECONOMIC DEVELOPMENT
ATLANTA - MODEL CITIES PROGRAM
The Regional Economic Development and Business Service:Center
Atlanta University
The objective of this report is to provide Atlanta's Model Cities
officials with a working tool to assist in the planning for Economic
Development activities in the Model Neighborhood Program Area.
Rather than wait until the Center's work on this subject is complete,
we have prepared a preliminary description of two items: One is the
various problems and conditions affecting the lives of business people
in this area. The other is the reactions of these business people in
this area. To what they feel, rightly or wrongly, are the conditions
under which they live. A full understanding and empathy with what
they face and what they feel is a prerequiste to improving current
socioeeconomic resources and developing new ones. It is also neces-
sary in order to plan effective for economic development in the area.
The style of this preliminary report, therefore, was deliberately
chosen to communicate this understanding.
In order to faciliate the use of socio-economic information use in
other studies conducted by the Center at the same time, it was neces-
sary to anticipate our final results. This has been done through an
analysis of all our available local data and where necessary, an inter-
polation of this data based on the results of research conducted elsewhere.
The local data has been developed from three major sources,
First, we held nearly fifty individual interviews with businessmen
operating a business in the program area. During these interviews,
the problems, attitudes, and reactions to existing services and con-
ditions were investigated. The second source of data was developed
through using graduate students attached to the Center's staff who
spent a total of about sixteen (16) weeks primarily in the five different
neighborhoods (one or two blocks in size), Their work involved the
use of informal and unstructured interviewing techniques as well as
simply continous observation of day-to-day movements, This secorid
approach provided us with much more depth of understanding than
could be obtained through more typical survey techniques. The third
source of data is the available local stitistics on income, employment,
family characteristics, health, and other factors.
Most of the local data that we have thus far collected is from the
program area. This area of approximately 3, 000 acres containing
slightly less than 50,000 residents is bound by the East Expressway
on the north, the Central of Georgia Railroad on the west, Atlanta and
West Point Railroad on the south and east. The six communities of
Grant Park, Summerhill, Mechanicsville, Peoplestown, Pittsburgh,
and Adair Park compose the target area. Some of our investigations,
however, have been conducted in other areas of Atlanta. On the basis
of this comparative information, we feel that, while there are
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differences among different areas, most of the preliminary conclusions
in this report are applicable to other low income areas of Atlanta.
In the overall view of needs and assigning priorities to these needs,
it is immediately evident that these represent problems of substantial
magnitude for the marginal and sub-marginal businesses in the Model
Cities Area,
The provisions of the Model Cities Program, theoretically, created
an ideal situation for the small entrepreneur ina relocation situation,
At first glance, it would appear that, by and large, these persons would
be anxious to relocate in modern, well planned facilities; as opposed to
the dilapidated, dingy and antiquated structures in which they presently
operate.
We have had an opportunity to converse with many of these business-~
men, white and black, within the inner city, and the reaction has been
less than pleasant anticipation.
Many realize that their problem is that of selective or captive
patronage. This is coupled with the lack of managerial capacity to
appeal to a total market, If they are required to move to a new location
then they will for all practical purposes, lose their patronage.
Many further feel that if they are eventually moved back to their
present locations, they feel that the financial requirement necessary to
acquire modern furnishings and fixtures would be prohibitive. Most
persons who have operated for some period of time are of the opinion
that they would not be able to be more than marginal operators. The
reasons given are age, financial resources, and lack of academic
training. Attention to a report submitted by a consultant for the
Regional Economic Development and Business Service Center, indis
cates similar findings as a result of a study conducted in a similar
area.
At this point the Center recommends the assigning of top priority
in these cases and make the development of managerial training course
an integral part of the transition period. It is felt that such a program
would contribute immensely to assisting these persons enhance their
managerial skills, as well as demonstrating the advantages of appeal-
ing to a total market.
Even considering those who would return to present sites, it
would do much in improving the ability to render service in his given
area. This is presently lacking ‘ most of the small, individual pro-
prietorhsips in the area.
This could be done through the Center conducting managerial
seminars on campus sites and/or in the various communities. These
seminars could be conducted and attendance requirement made a part
of the relocation subsidy which these persons would receive as a part
of the Model Cities relocation provisions.
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These seminars would serve to assist in making many of these
persons aware of the various government programs available in easing
the adjustment of relocation.
The foregoing recommendation would consist of programming the
general managerial needs of these neighborhood enterprises. This
would include choosing and improving sites, exposure to the various
marketing techniques useful to small business, raising of capital,
record-keeping and personnel management. Program should be de-
signed to include the above items, but not limited thereto,
Coordination of such a program could be implemented by the Cane
ter. Personnel could be selected from the School of Business of
Atlanta University, as well as the cooperating universities in the
Atlanta area. This would make for a comprehensive program of
Economic Development and Technical Assistance, It should be empha-
sized that these programs and seminars would be geared to the level of
academic preparation brought to the seminar by these entrepreneurs of
the communities in question. This would be in oppostition to many pro-
grams heretofore developed which would not lend themselves to mean-
ingful participation by such persons due to limited academic or
commercial preparation.
It would be further recommended that the Center would use contact
resources to encourage on-going industries to locate in these areas. It
would be well to emphasize that such industries would initially install
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their own management personnel with efforts made to train and promote
local personnel to these position in phases,
The Center could initiate programs which would facilitate the rath
grading of the local personnel in the direction of first-line management.
There could be further efforts, engaging the sources of the Center, to
seek out and determine the feasibility of the expansion and/or creation
of service industry enterprises that indicate a possibility of success
operating or based in these areas, but again, not limited to the respece-
tive communities.
There is an immediate need for the foregoing provisions. There
could be immense benefits derived from such an undertaking, and it is
felt that from these a meaningful program of Economic Development
could be designed for these communities with long-term implications.