A few weeks ago I read an interesting article from Marc H. Morial at Philly Trib on the need for Black entrepreneurship. As a black business owner myself I obviously agree with the sentiment, but it was the following quote that I used in the title that really caught my attention.
The median net worth for Black business owners is 12 times higher than Black nonbusiness owners.
Morial mentions that this comes from a recent study which may be the “Tapestry of Black Business Ownership in America: Untapped Opportunities for Success, a report by the Association for Enterprise Opportunity” released a few years ago. Despite it being a few years old, I will agree that it is still relevant.
For years, statistics have proven that if black owned businesses were given support and hired 1 additional person, it could eliminate unemployment. While I am well aware that you could argue the same for almost all minority / women / veteran / disable owned businesses I think that only adds to the need to support them. While the article promotes the 10,000 Goldman Sachs Small Business Program and its support of small businesses I do not think that is a good example of small firms that need help to hire one additional person. Remember for the Goldman program you must have revenue of at least $100,000 for them to take a serious look at your company.
If we can support the $50K – $100K companies, those that are on the cusp of growth but just need an additional opportunity, then those business can grow from no employees to two or three in less than 6 months. And there are alot of them out there. Supporting these micro to small businesses in targeted areas can generate economic growth and enable more options for job seekers.
Just a thought