Kauffman Foundation State of Min E

Kauffman Foundation - THE NEW AGENDA FOR MINORITY BUSINESS DEVELOPMENT Prepared by The Boston Consulting Group June 2005 TABLE OF CONTENTS SECTION

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
THE NEW AGENDA FOR MINORITY BUSINESS DEVELOPMENT Prepared by The Boston Consulting Group June 2005
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
TABLE OF CONTENTS SECTION PAGE E x e c u t i v e S u m m a r y 1 A c k n o w l e d g e m e n t s 4 The Current State of Minority Business Development 5 C l o s i n g t h e G a p 1 4
Background image of page 2
Page 1 EXECUTIVE SUMMARY Marked and measurable progress has been made in minority business development since the authors first examined the topic in depth for the U.S. Department of Commerce more than 25 years ago in the reports The New Strategy for Minority Businesses (1978) and Minority Business Enterprise Development in the 1980s (1980). 1 The evolution from nascent to noteworthy however was just the first step in minority business development. Taking the next step, moving from presence to prominence, poses new challenges and therefore demands a “New Agenda,” with a focus on growing larger and self-sustaining minority businesses. The Gains Once hobbled by a lack of capital, lack of access to government and private-sector market opportunities, and a lack of managerial talent, minority businesses face a vastly different reality today. Since the 1980s, with support from expanded government and corporate supplier diversity programs as well as other initiatives, minority firms as a whole have seen their revenue rise by about 10 percent annually, have created 23 percent more jobs, and have enjoyed an overall growth rate three times higher than that of traditional businesses. The Gap Even though the number of minority businesses has reached unparalleled heights, their proportion does not yet fully reflect the growing size and importance of minority communities in the United States—soon to account for 40 percent of the population. Fueling the disparity is the fact that minority businesses are disproportionately represented in low-growth and no-growth sectors. They also tend to rely on personal debt and family financing over business loans, equity, and other tools that are otherwise commonly accepted in the capital markets. As a result, minority businesses often lack the size, scale, and capabilities of their majority counterparts. A shift in mind set is required for: Corporations —elevating minority business development to a higher level in terms of strategic importance and fostering increased collaboration between minority entrepreneurs, consumers and employees Government —recognizing the critical importance of minority business in economic development and fostering the growth of not just small businesses, but those companies of size and scale that are positioned in growth industries Minority Entrepreneurs —growing businesses of size is the major imperative, requiring the entrepreneur to use all aspects of corporate supplier diversity progress and assume broader leadership roles—in their communities and on major corporate boards.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/13/2011 for the course EEE 3033 taught by Professor Staff during the Fall '11 term at Oklahoma State.

Page1 / 67

Kauffman Foundation - THE NEW AGENDA FOR MINORITY BUSINESS DEVELOPMENT Prepared by The Boston Consulting Group June 2005 TABLE OF CONTENTS SECTION

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online