The new globally competitive business environment is an uncharted territory for minority-owned businesses. To be successful, minority business owners must focus on building greater scale and capacity.
Every federal program for minority businesses has a different personal disadvantage criterion. This is confusing and creates unnecessary bureaucracy and inefficiency. One uniform criterion should be created.
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.
Two major challenges that are facing minority businesses are building greater capacity and improving management efficiency. Corporate mentor protege programs can assist in this regard.