IN THE SPOTLIGHT: MINORITY-OWNED BUSINESSES

IN THE SPOTLIGHT: MINORITY-OWNED BUSINESSES

Minority Businesses Are Engines for Job Creation

Minority businesses are vital to our local and national economy. Small businesses, including minority-owned enterprises, are where most new jobs begin. 
 
Did you know?

• Minority-owned businesses generate $1 trillion in economic output to the U.S. economy.
• They create 5.8 million jobs, growing 24 percent compared to a decrease in employment of 1.1 percent for non-minority firms.
• The minority-owned businesses are twice as likely to export compared to non-minority-owned businesses.
• The minority population has an estimated buying power of about $2.5 trillion in 2009, larger than the purchasing power of all but five countries worldwide in 2009, including the United Kingdom, Russia and France.
• Minorities represented 36 percent of the nation's population in 2010, and will become the majority of the population by 2042.

Source: U.S. Department of Commerce, Minority Business Development Agency, " Minority-Owned Business Growth & Global Reach "
 
To celebrate, recognize and support the contributions these businesses make to our economy, President Obama declared last week, September 25, 2011, through October 1, 2011, as  Minority Enterprise Development Week . On October 5 and 6, that celebration was brought home to Kansas City during  MED Week KC . 
 
At KCSourceLink, we want to continue that celebration in this month's newsletter, highlighting tips, trends and local resources that can help minority businesses in Kansas City start and succeed. 

SMALL BIZ TIPS, TRENDS & TALK

KC Ranks No. 31 on List of Best Cities for Minority Entrepreneurs

America's destiny is tied to minorities, who already constitute a third of the nation's population and who will account for roughly half of the population by 2050. Younger and more heavily represented in the labor force, minorities are poised to become the primary source of entrepreneurial growth.

Local Resources for Minority Businesses

KCSourceLink links a diverse network of local nonprofit resources. Here are a few that are focused on helping minority-owned businesses grow and succeed.

• Asian American Chamber of Commerce helps increase the visibility of Asian American businesses among major corporations, local and state governments, and other business organizations.
• Black Chamber of Commerce advances the commercial, financial, industrial, educational, and civic interest of the African American business community.
• Diversity Business Connection through the KC Chamber provides support, consultation, resource education and training to minority- and women-owned businesses. It focuses on three areas: access to capital, management and marketplace.
• Hispanic Chamber of Commerce is dedicated to the creation, advancement, promotion and development of economic opportunities within the Hispanic market and business community.
• Hispanic Economic Development Corporation is dedicated to improving the lives of Latinos within the greater Kansas City. HEDC achieves this area through business development and economic and community wealth creation initiatives.
• Indo American Chamber of Commerce promotes commercial and economic ties among business communities in the Greater Kansas City area and India.
• Kansas Black Chamber of Commerce provides leadership for the economic development of its members, partner corporations and community at large.
• Kansas Department of Commerce, Office of Minority & Women Business Development provides information and referrals about procurement, contracting and subcontracting opportunities, financing and business management.
• MidAmerica Minority Business Development Council provides educational programs, project funding and other financial services to certified MBEs thorough the Business Consortium Fund Guarantee/Loan Participation Program.
• National Native American Chamber of Commerce promotes the development of leadership and entrepreneurial skills for emerging Native American Business owners
• The Urban Entrepreneurship Program  provides one-to-one coaching to educate entrepreneurs on how to identify, analyze, and implement business solutions in order to start, manage and grow a profitable, sustainable business. 

6 Capital Funding Sources for Minority Businesses

Uncertain economic times and a tight credit environment call for creative, nontraditionalfinancial solutions for minority entrepreneurs. America's credit crunch environment is making it tougher than ever for entrepreneurs to raise money to start or grow their businesses, particularly minority-owned firms. A study released by the Minority Business Development Agency found that minority-owned firms are less likely to receive loans than non-minority-owned firms, especially businesses with gross receipts less than $500,000. The tightening of lending standards on traditional loans means minority businesses have to become more vigilant about their funding sources.  
 
KCSourceLink knows resources that can help. Check out our Resource Navigator or our Get Funding page on our website.

MBE/WEB: To Certify or Not to Certify?

Frequently at KCSourceLink, we have clients who request assistance to certify their businesses as minority-owned or women-owned businesses. Before we help them connect with resources to certify their businesses, we first connect them to resources to help them determine if certification will actually benefit their businesses. 

Understanding Minority Entrepreneurship

Minority entrepreneurs represent a largely untapped resource in the United States economy. Although the number of minority-owned businesses has grown significantly over the past twenty years, these firms continue to lag behind in economic indicators. TheKauffman Foundation is working to better understand these gaps, studying the layers of social and cultural perceptions and strengthening the infrastructures and networks that will help minority entrepreneurs be successful.

Why Minority Entrepreneurs Matter In America

Minority entrepreneurs are playing a bigger role in America's growth. In 2010 immigrants accounted for nearly 30% of new business owners, versus 13% in 1996, according to the Kauffman Foundation. This article from Forbes tracks one Hispanic entrepreneur to tell the story of Hispanic entrepreneurship and consumerism.

Minority Startups Get the Support of Comcast

From a newly created $20 million fund, Comcast is seeking to help underrepresented races successfully launch their businesses.

In partnership with DreamIt Ventures, a startup accelerator program, Comcast Ventures' Minority Entrepreneur Accelerator Program (MEAP) selected five startup companies that have that have at least 50 percent of their business owned by African Americans, Asian Americans, Latino Americans or Native Americans. Each MEAP company will receive up to $25,000 of seed funding, one-on-one mentorship with leading entrepreneurs plus donated legal, accounting and administrative help, the opportunity to pitch to dozens of venture capitalists and investors, and education from a weekly speaker series. 

MED Week: 'Social Media Both Sexy and Important' for Minority Businesses

During MED Week, three representatives of minority-owned companies provided insight onsocial media for minority businesses and how it has allowed them to create a different kind of platform for communications and marketing. Learn from their insights and then take a social media class from MidAmerica Minority Business Development Council.

Startup Black America... Where Do We Start?

Mike Green, award-winning journalist and public speaker on Innovation Economy, proposes Black America invest in  creating an entrepreneurial ecosystem  with the goal of generating 150,000 jobs in the next 12 months.