Minority Business Development Research Articles

Gender Differences in Acquiring Business Support from Online Social Networks

Social Networks have always been an invaluable resource for entrepreneurs attempting to engage in venture creation and growth. While differences in gender and its effect on traditional social networks have been explored, it is worth examining the gender effect when using the internet to create online network connections that supply useful resources. This study investigates the difference between male and female entrepreneurs’ social networks, the resources obtained from those networks, and the evolution of the ever-valuable weak tie. Hypotheses are tested using analysis of variance and analyses reveal women that female entrepreneurs and male entrepreneurs use the online network connections very differently in terms of the type of relationship and the type of resource acquired. The findings create implications for organizations that support female, minority or disadvantaged business development as these ventures increase in number and success.

The annual survey of entrepreneurs

We describe a new firm-level survey, the Annual Survey of Entrepreneurs (ASE), conducted by the Census Bureau in partnership with the Ewing Marion Kauffman Foundation and the Minority Business Development Agency. We provide the motivation for this new survey, context in terms of related surveys and products, and details about its sampling methodology and content. The paper is intended to inform potential users of publicly-available information from the ASE as well as researchers interested in using micro-level data through the Federal Statistical Research Data Center network. We close with a brief description of the ASE’s successor, the Annual Business Survey.

Startup Financing Trends by Race: How Access to Capital Impacts Profitability

This briefing explores startup financing trends and how access and cost of capital impact profitability. To do so, we use data from the Annual Survey of Entrepreneurs (ASE). The ASE, conducted by the U.S. Census Bureau, is the largest annual survey of American entrepreneurs ever done, and exists thanks to a public-private partnership between the Census Bureau, the Kauffman Foundation, and the Minority Business Development Agency.

The Annual Survey of Entrepreneurs: An Introduction

The Census Bureau continually seeks to improve its measures of the U.S. economy as part of its mission. In some cases this means expanding or updating the content of its existing surveys, expanding the use of administrative data, and/or exploring the use of privately collected data. When these options cannot provide the needed data, the Census Bureau may consider fielding a new survey to fill the gap. This paper describes one such new survey, the Annual Survey of Entrepreneurs (ASE). Innovations in content, format, and process are designed to provide high-quality, timely, frequent information on the activities of one of the important drivers of economic growth: entrepreneurship. The ASE is collected through a partnership of the Census Bureau with the Kauffman Foundation and the Minority Business Development Agency. The first wave of the ASE collection started in fall of 2015 (for reference period 2014) and results will be released in summer 2016. Qualified researchers on approved projects will be able to access micro data from the ASE through the Federal Statistical Research Data Center (FSRDC) network.

Revisiting “Black–Korean Conflict” and the “Myth of Special Assistance”: Korean Banks, US Government Agencies, and the Capitalization of Korean Immigrant Small Business in the United States

A major source of contention fueling “Black–Korean conflict” is the claim put forth by many African Americans that Korean immigrants receive special support from banks and the American government to open their businesses. In response, scholars argue that this claim is a myth, that Koreans are disadvantaged in terms of access to resources from banks and government institutions, and that they must therefore rely on co-ethnic resources. Yet the preoccupation with co-ethnic support has resulted in minimal attention toward the industries of Korean banking and US government small-business development, both of which have grown since the first wave of post-1965 Korean immigrant entrepreneurship. Drawing from interviews with Korean bankers and representatives of resource partners of the Small Business Administration and the Minority Business Development Agency, this article shows how Korean banks and US government agencies promote Korean immigrant small business. Emphasizing the transnational opportunities that Korean banks provide, Korean-focused programs offered by government resource partners, and collaborations between banks and government agencies, this study explores how the typification of Korean immigrants as simultaneously insulated, underserved, and deserving informs institutional efforts to connect with Korean communities. To this end, the article considers how government agencies work to promote both intra-ethnic and interracial networking among Koreans, to facilitate financial literacy, and to diversify Korean banks’ clientele.

Investigating the Entrepreneurial Attitudes of African Americans: A Study of Young Adults

IntroductionAs noted in multiple reports from the Global Entrepreneurship Monitor (GEM), entrepreneurs often pursue business ownership based on either opportunity recognition or financial necessity due to the lack of economic alternatives. Consistent with this finding, research indicates that minorities are seeking out more entrepreneurial opportunities as a way to overcome the frustration and discontent associated with the lack of advancement opportunities in their current organizations (Heilman & Chen, 2003; Weiler & Bernasek, 2001). While these numbers indicate that the entrepreneurial spirit is alive and well, research indicates that many individuals have high levels of entrepreneurial potential that is never acted upon (Kent, 1990). In fact, the Kaufman Foundation indicates that minority entrepreneurs are a largely untapped resource in the economy of the United States. Of special concern is the degree to which African Americans may experience barriers that limit their potential in the entrepreneurial sector.Before addressing potential obstacles historically faced by African Americans in regards to business ownership, it is first important to understand the significance of entrepreneurship for minority groups. As suggested by Acs, Tarpley and Phillips (1998), a primary contribution of entrepreneurship for minorities is the opportunity it creates to enter the economic and social mainstream of American society. Similarly, past research has argued that the health and growth of African American-owned small businesses often serves as a strong barometer for the overall progress made by minorities in the U.S. (Feldman, Koberg & Dean, 1991; Thompson, 1999).The passage of the Small Business Act has positively impacted the number of minorities who have considered entrepreneurship as a viable career choice. The Act enhances the use of entrepreneurial training to grow the capacity and skills of potential small business owners (Martin, Wech, Sandefur & Pan, 2006). As a result of the governmental and educational initiatives, the number of opportunities for minorities to receive training and education for small business development has substantially increased over the past few decades.Between 1997 and 2002, minority-owned companies increased in number, annual gross receipts, and paid employees at a rate faster than non-minority firms. According to a report from the Minority Business Development Agency (2006), these businesses represented almost 18% of classifiable firms, employed 9% of all paid employees, and grossed 8% of all annual gross receipts ($668 billion) in 2002. More recent research indicates that there are approximately one million African American owned businesses in the U.S., accounting for over $100 billion in annual sales (African American Entrepreneurs, 2009). Additional evidence also indicates that minority entrepreneurship has steadily increased during the past decade, with estimations that currently 30% of small businesses in the U.S. are owned by women or minorities (Bergman, 2006).Little research has empirically examined the entrepreneurial attitudes and intentions of African Americans, particularly young adults. In fact, despite their increased involvement in business ownership, research indicates that minorities in general tend to be less optimistic overall in their expectations of business success (Carter, 2000) and are more likely to fail when starting a new venture (Boden & Nucci, 2000; Carter, Williams & Reynolds, 1997; Robb, 2002). Thompson (2004) points out that successful entrepreneurship requires a combination of temperament, talent and technique. It can be argued that temperament is first needed in order to convince African Americans of their potential in the entrepreneurial arena, and to encourage them to view business ownership as a viable career option.The purpose of this study is to examine the entrepreneurial attitudes of African American students. …

Presidential Perspectives

On July 11, 2011, Fresno California was designated as one of the six initial communities for the Strong Cities, Strong Communities (SC2) initiative, a new and customized pilot project by the Obama administration to strengthen local capacity and spur economic growth in local communities. A team of federal administrators representing the Environmental Protection Agency (PA), the Economic Development Agency (EDA), the U.S. Department of Agriculture (USDA), the Department of Transportation (DOT), the U.S. Department of Housing and Urban Development (HUD), the Minority Business Development Agency (MBDA), the U.S. Department of Health and Human Services (HHS), and the U.S. Department of Labor (DOL) will work with local governments, the private sector, and other institutions to leverage federal dollars and support the work being done at the local level to encourage community development. Federal administrators will be on site and housed at Fresno City Hall. By integrating government investments and partnering with local communities, SC2 channels the resources of the federal government to help empower cities with established planning and strong leadership as they develop and implement their vision for economic growth. This designation culminates years of work by region leaders to align resources and build a network to transform a region.

Minority, Black and Non-Black People of Color: ‘New’ Color-Blind Racism and the US Small Business Administration’s Approach to Minority Business Lending in the Post-Civil Rights Era

This study examines the current approach of the US Small Business Administration (SBA) to minority lending and considers the implications for minority business development in the post-civil rights era. Interviews with SBA employees in Los Angeles and New York reveal that the SBA takes a ‘new’ color-blind approach that emphasizes race and minority status but fails to address racial stratification. I analyze the SBA’s conceptualization of minority, lending goals, outreach methods, and its reliance on banks to promote its loan program, revealing how these practices build upon and reinforce existing inequalities among people of color. Data suggests flexible approaches to minority business development by the SBA may ultimately be unhelpful for African Americans but useful for non-black people of color. The study concludes with the policy recommendation that the SBA create a direct loan program that explicitly promotes black business, with consideration given to the difficulties of having such a proposal adopted.

The New Agenda for Minority Business Development

The New Agenda for Minority Business Development

Transnational family networks and ethnic minority business development

PurposeThis paper seeks to understand the role played by transnational family networks in ethnic minority business development.Design/methodology/approachThe Vietnamese nail‐care sector is taken as a case study. The research involved interviews with ten owner‐managers and four key informants involved in this industry in London. The analysis draws on concepts of “strong” and “weak” network ties and “mixed embeddedness” to explain why the Vietnamese continue to enter such a competitive sector.FindingsThe results highlight the importance of transnational family networks within all aspects of the business and suggest that these links can sometimes provide a fertile source of new business ideas, but can equally limit innovation. The presence of innovative and well‐educated members within the entrepreneurs' “strong‐tie” network appeared to encourage more successful business development and diversification.Research limitations/implicationsThe research challenges the traditional “strong/weak” ties thesis and suggests that, while it has some general value, in the context of groups from more collectivist societies and with family links overseas, it is necessary to take account of the human and social capital resources of the extended family rather than just those of the individual entrepreneur.Practical implicationsTo maximise the potential of these links it suggests that business advisers need to undertake a comprehensive audit of entrepreneurs' networks and assist them in assessing how their family ties can best contribute to the development of the business.Originality/valueThe paper focuses on a new community (the Vietnamese), and a new sector of study (transnational family networks), both of which have received little attention in the entrepreneurship literature.

Minority Business Development Index: A Data Report on American Minority-Owned Business

This report attempts to assist policymakers by indicating the status and trend of minority business and providing information on characteristics of minority business owners. Tremendous progress has been made, the disparity between minorities and the American mainstream is still lingering. At the same time, we have found successful stories that can shed lights to improve the economic wellbeing of those left behind. In 1982, minorities merely owned 7 percent of U.S. firms. Twenty years later, minorities owned 18 percent in 2002. In five years between 1997 and 2002, Black-owned firms grew 45 percent and Hispanic-owned firms grew 31 percent. Yet, for every dollar of receipts that a White-owned firm made on average, minorities made much less. While minority population has been growing rapidly, the growth of business numbers, especially the increase in business receipts has not been synchronized. Terms such as poverty, food stamps, or social welfare, remain minority significant. Can American minorities catch up with the mainstream? Asian Americans have offered a very positive and promising tendency. The abundant human capital through education and possible strong social network associated with high rate of marriage and with family business financing created a special comparative advantage for Asian business. This resulted in a high business density that is likely to be positively correlated to people's economic wellbeing.

New Faces in a Changing America: Multiracial Identity in the 21st Century

Back to table of contents Previous article Next article Book ReviewsFull AccessNew Faces in a Changing America: Multiracial Identity in the 21st CenturyBrian Tsuzaki, M.D.Brian TsuzakiSearch for more papers by this author, M.D.Published Online:1 May 2005https://doi.org/10.1176/appi.ps.56.5.619-aAboutSectionsView EPUB ToolsAdd to favoritesDownload CitationsTrack Citations ShareShare onFacebookTwitterLinked InEmail New Faces in a Changing America: Multiracial Identity in the 21st Century examines multiracial identity largely from a sociological perspective. The editors, Loretta I. Winters and Herman L. DeBose, are both associate professors of sociology at California State University at Northridge. The book's 18 chapters, each written by a different author, are organized into five parts: "Race as a Social Construct," "The Multiracial Movement," "Racial/Ethnic Groups in America and Beyond," "Race, Gender, and Hierarchy," and "Special Topics." Concerning the intended audience, DeBose writes in the introduction, "The book is written primarily for an undergraduate college course, but may be used as a supplement text for graduate courses. It is written for classes on multiracial identity issues and may be used as a reference for professionals who serve large multiracial populations (e.g., school personnel, therapists, human resource specialists, government agents)."One of the main topics of this book is the change in racial categorization in the 2000 U.S. Census. For the first time in the history of the census, people could check two or more racial categories, or "mark all that apply." This change was a huge issue to multiracial and minority peoples. Many multiracial organizations believed that this would give multiracial people an identity they had always been deprived of. On the other hand, many African-American organizations thought that a multiracial category in the census would "dilute the traditional minority count" and thus "undermine various state and federal programs aimed at minorities, such as minority business development programs and some affirmative action plans."The book also addresses the larger issue of racism in America. One chapter shows how the categorization of multiracial peoples has changed in the census throughout the past 200 years. It argues that these categorizations not only reflected the prevailing attitudes toward race at the time but also were used as tools to benefit the dominant race. Even the concept of race itself is scrutinized in this book. The question is raised, Is there a valid biological basis for separating people into races, or is race merely a manmade construct, a tool that has been used to gain power and money?As a last comment, I was struck by the regular use of provocative terms and ideas throughout the book. To give one example, Mary Thierry Texeira writes in chapter 2, "Moreover, we cannot understand the (multiracial) movement unless it is placed in the context of white supremacy. White supremacy informs us that divisions, including racial labels and categories among people of color in the United States, have always benefited a white power structure that has often endorsed attempts to disunite nonwhites." Although I didn't agree with everything in this book, it did help me better understand others' perspectives on race and multiracialism.Dr. Tsuzaki is a staff geriatric psychiatrist at the Department of Veterans Affairs Medical Center in Honolulu, Hawaii.edited by Loretta I. Winters and Herman L. DeBose; Thousand Oaks, California, Sage Publications, 432 pages, $36.95 softcover FiguresReferencesCited byDetailsCited ByNone Volume 56Issue 5 May 2005Pages 619-a-620 Metrics History Published online 1 May 2005 Published in print 1 May 2005

Ethnic minority business in comparative perspective: The case of the independent restaurant sector

British research on ethnic minority entrepreneurship has often endeavoured to account for the prominence or otherwise of ethnic minority groups in business. This trend towards explicating the diversity of ethnic minorities in business has intensified with recent attention to apparently significant variations within the South Asian community itself. But how 'different' is ethnic minority business activity from the wider small firm population? This question is addressed through a qualitative study of a variety of ethnic groups involved in Birmingham's independent restaurant sector. In this article we examine two processes that have been marked out for particular attention in debates on ethnic minority business activity: the role of the family in the process of business formation and management of the enterprise, and the dynamics of 'workforce construction'; that is, the 'qualities' that employers look for in recruiting workers. The results highlight the interplay of culture and economics at work. In so doing, they serve to bring into question 'solidaristic' notions of ethnicity, that attach primary importance to 'culturalist' explanations of ethnic minority business development. It is argued that accounts of the apparent distinctiveness of ethnic minority businesses need to be more carefully embedded in the sectoral context in which they operate. Further, qualitative approaches are more likely to capture the connection between culture and economics in action than quantitatively-based survey assessments.

South Asian Entrepreneurship: A View from the North

The paper, while having a cursory examination of ethnic minority business development in Newcastle‐u‐Tyne, examines issues that businesses further south have long since experienced and overcome as a result of a heavy concentration of support networks and institutions (Srinivasan, 1992). The main issues of the paper centre around the reluctance of ethnic minority business owners, particularly those from South Asia, to utilise Government agency support in the development and expansion of their businesses.

Ethnic Solidarity and Black Business

Abstract This paper examines the development of a separate economic niche for black entrepreneurs in Chicago's ethnic beauty aids industry. It argues that this economic niche developed in response to advantages black entrepreneurs had in mobilizing ethnic resources in the black community. The paper's findings lend support to general theoretical arguments stating that ethnicity, race, and other symbols for identity function as low‐cost screening devices for evaluating the likelihood that trading partners will honor economic contracts, particularly in a market setting where formal market mechanisms are not fully developed. The findings are based on a series of in‐person interviews with Korean, Jewish and black distributors of ethnic beauty aids in Chicago. Although this paper focuses on a single market niche, its conclusions indicate that greater attention needs to be paid to the effects of social, political, economic and structural factors on minority business development.

Public contracting, policy preferences and minority business enterprises

About three years ago a Special Issue of the International Journal of Public Administration focused on the topic “Government Set-Asides, Minority Business Development, and Publi Contracting.”(l) Much of the discussion in the issue addressed race conscious government set-aside programs in the aftermath of the U.S. Supreme Court decision in City of Richmond v. J. A. Croson Co. (2) The decision declared unconstitutional a local government minority business set-aside provision designed to help minority business enterprises (MBEs) obtain government contracts. At the time, the decision was applicable only to state and local governmental jurisdictions.(3) Government set-asides involve the practice of providing minority contractors and subcontracting a certain percentage of a public jurisdiction's contract dollars. In 1995 the Supreme Court in Adarand v. Pena (4) extended the Croson ruling to include set-aside programs in federal agencies. This Special Issues examines and discusses the Adarand decision and the developments that have followed. The first article by Mitchell F. Rice, “Federal Set-Asides Policy and Minority Business Contracting: Understanding the Adarand Decision,” reviews the Adarand decision and discusses the implications of the decision for minority business development. The next article by Audrey L. Mathews and Mitchell F. Rice, “Adarand v. Pena: Turning Challenges Into Opportunities,” uses a case study of two public preference programs to suggest how Adarand requirements may be successfully utilized to maintain set-aside preference programs. The third article by Shelton Rhodes, “Mirmative Action Review ‘Report’ to the Presidents: Implications of Military Affirmative Actions Programs to Current and New Millennium Affirmative Action Programs,” reviews the Affirmative Action Review: Report to the President which was ordered by President Clinton soon after the Adarand decision. Rhodes considers the implications of the possible applicability of the successes of affirmative action and equal opportunity in the military, which is highlighted in the Report, to other public and private organizations. The final article by Wilbur C., Rich, “Presidents and Minority Set-Aside Policy: Race, Gender and Small Opportunities,” analyzes the impact of presidential leadership on minority set-asides policy and shows how politicians use set-asides to facilitate exchanges and cooperation with the business elites.

The Effects of Racism and Racial Discrimination on Minority Business Development: The Case of Black Manufacturers in Chicago's Ethnic Beauty Aids Industry

Journal Article The Effects of Racism and Racial Discrimination on Minority Business Development: The Case of Black Manufacturers in Chicago's Ethnic Beauty Aids Industry Get access Robert Mark Silverman Robert Mark Silverman University of WisconsinMilwaukee, Department of SociologyMilwaukee, WI 53201 Search for other works by this author on: Oxford Academic Google Scholar Journal of Social History, Volume 31, Issue 3, Spring 1998, Pages 571–597, https://doi.org/10.1353/jsh/31.3.571 Published: 01 March 1998

Did Adarand Kill Minority Set-Asides?

Federal minority contracting opportunities serve as a major point of entry for socially and economically disadvantaged business entrepreneurs and small business concerns into the mainstream of American business enterprise. In 1994, the Minority Business Development Agency (MBDA) in the U.S. Department of Commerce reported that the value of all federal minority business enterprises prime and subcontracting procurement was 14.6 billion dollars or 8.3 percent of the total federal procurement (Parrott-Fouseca, n.d.). This amount represented an increase of more than 100 percent since 1984. Further, 68 of the top 100 Black Enterprise Magazine businesses are federal government contractors (Parrott-Fouseca, n.d.). About 32 of the top 100 largest African American firms and 17 of the top 100 largest Hispanic firms were or had been in the Section 8(a) program of the Small Business Administration (Affirmative Action Review: Report to the President, 1995). In fiscal year 1994, 5.8 billion dollars worth of federal contracts were awarded competitively to minority businesses; representing an increase of some 152 percent from 2.3 billion dollars awarded in fiscal year 1984 (Parrott-Fouseca, n.d.). Additionally, 6.1 billion defense dollars were spent with minority firms in 1994 and from 4.4 to 4.9 billion federal dollars were spent with 5,400 firms in the Section 8 (a) program in 1994 (D. J. Miller and Associates, n.d.; Affirmative Action Review: Report to the President, 1995). Provisions in federal law allowed set-asides to provide opportunities for socially and economically disadvantaged and small business enterprises to win federal contracts. For example. Section 502 of the Small Business Act (Public Law, 95-507) provides: The President shall annually establish government-wide goals for procurement contracts awarded to small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals. The Government-wide goal for participation by small business contracts shall be established at not less than 20 percent of the total value of all prime contract awards for each fiscal year. The Government-wide goal for participation by small business concerns owned and controlled by socially and economically disadvantaged individuals shall be established at not less than 5 percent of the total value of all prime contract and subcontract awards. The Section 8(a) program represents some 40 percent of all federal procurement dollars received by small and socially and economically disadvantaged enterprises (Henderson, 1995). Further, the U.S. Department of Defense's Section 1207 programs allows the agency to implement a limited set-aside program for small businesses--in addition to the Section 8(a) program--to meet a statutory goal of 5 percent for socially and economically disadvantaged business enterprises (Public Law, 99-661). The intent of these and other similar federal procurement programs is to address historical patterns of discrimination and poor market access of minority business enterprises (Henderson, 1995). However, a number of these programs were called into question as a result of the Supreme Court's decision in Adarand Constructors, Inc. v. Pena (115 S.Ct. 2097, 1995). The social and political controversy generated by the Adarand decision prompted President Clinton to issue a memorandum on June 19, 1995, to the heads of executive departments and agencies with the following directive: in all programs you administer that use race, ethnicity, or gender as a consideration to expand opportunity or provide groups that have suffered discrimination, I ask you to take steps to ensure adherence to the following policy principles. …

Response: Michael Porter's Conservative Urban Agenda will not Revitalize America's Inner Cities: What will?

Once shorn of the fetters of government and meddling community groups, profit-seeking businesses will, according to Michael Porter, capitalize on the competitive advantages of the inner city. Will the ensuing business development dynamic create jobs for the impoverished of the inner city? The author does not think so. A properly compliant government and pro-business community groups, working in conjunction with large and small businesses, in fact, will accomplish little, absent a profound change in society's attitudes about why it is that poor urban areas are poor Society expects that ghetto redevelopment plans willfail, Those seeking change must highlight the success stories, energize the public-private partnerships, and prod businesses into investing in the city. One model of successful minority business development, Mesbic Ventures of Dallas, is put forth to highlight how job creation can become a reality in urban minority communities.

Preferential Procurement Programs and Minorlty-Owned Businesses

:Some minority business enterprises (MBEs) benefit from their participation in government preferential procurement programs and some do not. A subset of minority vendors identified in this study behaves in ways suggesting sensitivity to penalties for violating minority business certification and procurement program regulations. These firms flourish in the absence of fraud penalties. A different group of minority vendors selling to government benefits from an environment in which MBE certification is comprehensive, bonding and working capital assistance are available, and assistance is delivered by a staff dedicated to aiding potential and actual MBE vendors. The preferential procurement program can serve as either a valuable economic development tool for fostering minority business development or it can promote MBE front companies that pass their procurement contracts to non minority firms. Some governments choose to operate the. former type of program, others opt for the latter.