April 15, 2016 | By Rohit Arora, CEO of Biz2Credit | CNBC
In the pursuit of the American dream, minority business owners often face an uphill battle. Often facing social and economic discrimination, the climb is tough. Despite the inevitable hurdles, minority entrepreneurs seem to be confident in what the future holds.
According to the Minority Business Development Agency, the rate at which minority-owned businesses are being formed continues to rise. The number of minority business enterprises increased 39 percent between 2007 and 2012 (from 5.8 million to 8.0 million), or more than three times faster than population growth among minorities, according to the Census Bureau’s 2012 Survey of Business Owners. But they fall short in comparison to other businesses’ overall success in terms of revenue and profit growth.
In response, President Obama’s fiscal-year budget proposal for 2017 requests $35.6 million for the MBDA to expand its services and assistance to the nation’s 8 million minority businesses. This is an increase of $3.6 million over FY 2016 appropriations.
As the country’s population becomes more diverse, so too does its business sector. Latino-owned companies continue to boom, and firms owned by people from South Asia (India, Pakistan and Bangladesh) and East Asia (China, Korea, Japan and other Pacific Rim countries) are also expanding like never before. Black entrepreneurs are also thriving.
A recent Biz2Credit survey of more than 1,500 minority business owners from across the country in late March and early April asked for their opinions about the economy overall and their own prospects for success in 2016. The sample included Hispanics (59.9 percent), South Asians (19 percent), African Americans (14 percent) and East Asians (7.1 percent).
The gender breakdown was 78.3 percent male and 21.7 percent female. More than half of the respondents owned companies that were in business for two years or less. Greater than two-thirds of them were sole proprietorships or LLCs.
View full article on CNBC