For small-business owners of color, the future may hold more chances to succeed. That’s partly because, as one report recently noted, there have been many minority business owners propelling the economy through even its lowest points. With the right capital finance to support their ventures, these entrepreneurs can strive for more success in the future.
The new report, “The Color Of Entrepreneurship,” comes from Algernon Austin and the Center for Global Policy Solutions. It specifically looked at the way businesses owned by people of color fared over a five-year period beginning in 2007.
The surveys included in the report collated data about black, Hispanic, Asian-American and American Indian men and women who owned businesses during this time, and measured the changes using various aspects, including sales numbers and the amount of employees on staff.
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Among these demographics, the businesses of male Hispanic owners saw the greatest increase in average sales, with a 7.2 percent increase between 2007 and 2012. Male and female Asian-American business owners, as well as black male owners, also experienced positive growth during this time.
“Male and female Asian-American as well as black male owners saw their businesses grow.”
The nonwhite demographic that saw the largest growth in employees in this period was Asian-American men, who saw 52,073 people join in this interim. However, in terms of percentages, Asian-American women saw the greatest change – 37.6 percent growth since 2007.
While the narrative tends to be that the Great Recession hurt growth across the country, this report emphasizes a silver lining for women and men of color. The Center’s president Maya Rockeymoore told the Wall Street Journal about the significance of the report’s findings, flipping the script of what many think they know about recent economic history.
“The recession years were by necessity an opportunity for people of color in general, and women of color specifically, to actually have a personal response to the Great Recession—when many people of color were laid off in greater proportion—by creating businesses,” Rockeymoore said. She also said that developing business interest for owners of color could lead to “exponential growth” through more resources.
What can owners do?
Knowing all of this, owners can look for the resources that will help them develop their latest venture. The Small Business Administration offers some programs worth considering for people of color, especially those who have suffered economic hardships.
According to the SBA website, the 8(a) Business Development Program may apply to both businesses and entities owned by Alaska Native Corporations, American Indian tribes and Native Hawaiian organizations, among other groups. The Minority Business Development Agency also allows businesses to pursue certification to signify their status.
Contact Growth Capital Corp. for more information about loans for small businesses that might be the best choices for you. You can also read about the different options we offer and see if they apply to your business.
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