GDP growth slowed to 2.2% in the first quarter of 2012, based on preliminary estimates. The slowdown has implications for small businesses who supply goods to corporations and are government contractors.
In a recent visit to the White House at the invitation of the President’s Council of Economic Advisers, Gazelle Index Publisher Danny Boston proposed the creation of a National Commission on Black Employment
Federal Programs for Minority Businesses could be much more effective if the government would alter the Personal Net Worth criteria and create uniform eligibility standards across all programs.
Scaling has become the new mandate for minority-owned businesses. While minority companies have grown significantly in number, too few have the scale and capacity needed in today’s global economy.
Inequality for blacks and Latinos has worsened over time. Whether measured by wealth, income or jobs, the picture is dismal. Blacks and Latinos make up 27% of the workforce and 40% of all unemployed workers.
The US economy is heavily dependent upon the viability of small businesses in Canada. Those businesses account for 25% of the country’s total exports and Canada is the leading trade partner to the US.
To reduce the high rate of black unemployment the government should provide more support to black-owned businesses because two out of every three workers employed in those businesses are black.
The burden of unemployment falls heaviest upon blacks and unfortunately, economic growth in important but is not sufficient. Even when US GDP grew at 6.7%, the unemployment rate for blacks averaged 10.6%.
Indian entrepreneurs are more likely to start a business in order to have flexibility and greater independence. Nearly two-thirds believe their companies have improved the quality of life in their communities.
Another month or two is required in order to determine whether the lower than expected number of jobs created in March was caused by high oil prices, a statistical aberration or a slowing economy.