Accelerating Job Creation and Economic Productivity

摘要

The findings in this report clearly indicate that, to maximize overall economic impact, minority entrepreneurs must increase the capacity of their businesses, and ensure the ability to access private sector, government, and consumer market opportunities. Across the board, minority firms are smaller, with less revenues and employees, than comparable majority firms. For example, when comparing firms with paid employees, excluding C corporations (C corporations are often publicly traded companies), majority-owned firms in this category have average revenues of $1,276,367 and employ 9.9 employees; the average minority-owned firm has revenues of $641,629 and on average employs 6.2 employees. Minority ownership is also concentrated in industries, such as services and retail trade, where U.S. average annual capital expenditures for equipment are very low. Low capital requirements are clearly an attractive feature for someone who wants to start a business but has very limited access to capital. Minority entrepreneurs are also under-represented in areas, such as manufacturing, which require greater capital investments. Resolving the financing impediments will begin to address these issues. MBDA's objective in undertaking this project was to identify and recommend solutions to existing capital barriers; its overall goal is to develop larger and healthier minority businesses. If these recommendations are implemented and capital flows more freely to minority businesses, more minority entrepreneurs will start and grow companies to significant sizes, creating jobs that reduce unemployment in minority communities. By becoming major shareholders in the American economy and society, minority entrepreneurs can create and share wealth, and in the process improve community well-being and enhance the quality of life for those with whom they work.