Black unemployment is 14.1% and Latino unemployment is 10.7%. One way the government can help reduce unemployment among blacks and Latinos is by promoting business development among the groups.
To build greater capacity firms must reach reach Stage III growth. Only 14% of the non-minority-owned firms have done so, 12% of Asians, 11% of Latinos and just 6% of black businesses.
Blacks and Latinos own 7.1% and 8.3% of all small businesses but make up 15.3% and 10.8% respectively of federally registered contractors. Government contracts provide advantages for minorities, but they often hit a brick wall when it comes to scaling up.
In 2011, Hispanic/Latino small businesses earned $5.8 million in annual revenue and had 22 workers. The largest Industry was construction, where revenue was $14.7 Million: based on the Gazelle Index national survey of small businesses.
Hispanic/Latino CEOs do not plan to increase hiring in 2012. They are the only group where 20% of CEO will add jobs while 18% will cut jobs. Future hiring will be strongest in retail and virtually unchanged in construction. Regionally, Hispanic/Latino firm hiring will be strongest in the South.
Small businesses owners differ in what they want out of Presidential candidates. Hispanic businesses strongly prefer lower taxes, black businesses want more access to loans and credit.
The recession hurt employment in Hispanics/Latino-owned small businesses more than it did for any other race or ethnic group; 55% of Hispanic businesses cut their work force while 29% cut it by 50% or more.