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.
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.
Small business account for the majority of new jobs. However, their hiring depends upon demand from consumers, business-to-business sales, corporate supply chain and government purchasing.
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.
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.
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.
The Small Business Administration Director is elevated to the President’s Cabinet , this is good news for Small and Minority Businesses.
The Gazelle Index survey shows that hiring will increase in 2012; 27% of small businesses will increase hiring and 14% will cut. We forecast a 7.8% or lower unemployment rate.
Small business owners want the Presidential candidates to cut business taxes (especially Hispanic businesses) and make bank loans more easily available (particularly black business owners).