Presidential campaign messages should be tailored to specific small business demographic group and employment sizes. Capital is important, but it not a cure all.
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.
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.
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.
Governments across the country are debating modifications to their small business program criteria. The likely impact of the Georgia’s proposed changes on businesses by race and ethnicity is examine.
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.
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.
Based on a national survey of small business CEOs, reducing the minimum wage would have the smallest positive effect on hiring among all policies. If the government does nothing, it will also hurt small business hiring.
According to the Gazelle Index, more than twice as many small businesses plan to hire workers than to lay off workers over the next three months. This is true for businesses owned by blacks, whites, men and women–but not for Hispanic/Latinos.