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.
Presidential campaign messages should be tailored to specific small business demographic group and employment sizes. Capital is important, but it not a cure all.
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.
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.
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.
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.
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.