The President and Congress are struggling to find ways to reduce the large number of unemployed workers, especially among African-Americans, and to a lesser extent, Latinos. The solution is easy – provide greater support to minority businesses.
Last month, the economy created a large number of jobs, but black unemployment increased from 13.4% to 14.3%. With the presidential election over, it is time now to address the crushing burden of unemployment among blacks.
There were 7264 black-owned businesses register with the federal government. Businesses in Internet publishing and telecom industries accounted for 31.4% ($502.2 million) to total awards.
The 17 page Gazelle Index Report on Minority, Women and Small Business Outlook for 2012 is now available. The report analyzes the economy and the outlook for minority and women businesses.
A summary of the 2012 outlook for small businesses owned by minority, women and non-minority CEOs is provided below. The results are based on the Gazelle Index national random survey of CEOs.
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%.
The revenue of Black businesses in the Gazelle Index national survey is $1.7 million. The businesses employed 21 workers on average. These firms are high performers and they have a unique quality in common- they plan and they set high growth targets.
The Gazelle Index is a new national quarterly survey of the outlook, current conditions, optimism and future hiring plans of minority, women and non-minority small firms. It published because here is no up-to-date survey of these groups.
Black CEOs plan to increase hiring significantly in 2012, more so than any other race or ethnic group; 37.4% will increase hiring vs. 15.2% who will cut jobs. Black business hiring will be strongest in the Northeast and in Information Technology.