The Importance of Minority Owned Businesses

Posted by: headm on: May 7, 2013

Businesses play a large role in an economy irrespective of its size and definition. All business entities provide an equal contribution to the country’s revenue generation. Minority owned business as described in the common definition is an entity operating in the market with the profit intention and is owned more than a 51% by minority group members. That is the US citizens but by native Asian, Hispanic, African-American, women and disable entrepreneurs.

Just as a community is blended with different variety of people the business market is also a combination of different types of businesses. It is found in the past two decades the number of minority businesses has grown significantly. The big secret in this shift can be the population demographic change. As far as the facts and figures are concerned this change seems to add benefits to the economy as a whole. These firms contribute sufficiently to the countries revenue and they have a healthy effect on the community they live in. They bring new ideas and opportunities for future. Not only they bring sales value but also they bring new jobs to the market.

From a minority business point of view the hardships and complexities they have to face are immense and due to the lack of recognition in the corporate business world new ideas and aspirations might get dissolved into the background. It is worth to note even with these hardships they still manage to make a considerable mark on the revenue generation and growth rate. With the right recognition and guidance these can be developed into well established business corporations.

The future market conditions may turn up to be fluctuating and unpredictable; therefore it is always healthy for an economy to consider developing a secondary level frontier to face these uncertainties. Minority own businesses start from the community level and emerge its way into the market along with the community. This brings lots of positive changes including new visions, support services, positive attitudes and increase in income levels. On the other hand the minority entrepreneurs are constrained by limited capital investments, high interest rates, high loan denial rates and low recognition in the industry. These barriers to grow unless otherwise addressed on time can turn out impact the economy in an adverse manner on the overall US productivity and its power to remain competitive in the global economy.

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