Minority-owned Firms Research Articles

An Analysis of the Formation and Failure Rates of Minority-Owned Firms

This article primarily investigates the applicability of principles of industrial organization to an understanding of the formation and failure process of minority-owned firms. Among these principles are that formation will be high (and failure low) when a firm is located in a high growth industry, a high growth geographic locale, and an industry with low capital intensity and low concentration. The article also evaluates whether some of the hypotheses from the minority literature, such as the impact of SBA loans to minorities, also contribute to an explanation of the formation and failure process.

Technology Transfer to Minority Business: Results of a Pilot Program

The Minority Industrial Assistance Research Project was a pilot program which provided technical assistance to minority-owned industrial firms. It was designed to investigate how NASA technology can be helpful in solving technical problems in small businesses. The Project's main research hypothesis was that problem-solving assistance from highly qualified scientists and engineers could be used to facilitate the transfer of NASA technology to minority-owned businesses. The Project's primary research finding is that it does not appear that technical problem-solving assistance will significantly enhance the likelihood that technology transfers to minority-owned firms will occur. Issues related to this finding are the following: (1) There are very limited numbers of technically oriented, minority-owned firms that have the capability and resources necessary for accomplishing transfers of technology. (2) Technical problems that are encountered when assistance is offered on a reactive basis typically have little relationship to NASA technology. (3) Implementation of problem solutions usually have fundamental business consequences for small firms and therefore are likely to be accompanied by high risk. This paper provides an overview of the Project's findings by reference to the demographics of minority-owned businesses, characteristics of participating companies and their technical problems, and selected aspects of technology transfer processes. Recommendations for future assistance in technology transfer are also provided.

Unique Team Effort on Washington Subway Project

One of the best avenues for rapid development of minority-owned firms, and individual civil engineers, is via joint ventures. The experience of the Delon Hampton-Westenhoff & Novick Joint Venture clearly shows that joint ventures between majority and minority firms can work successfully and to the mutual benefit of both organizations. Based on our experience, the essentials for a successful joint venture are mutual respect of both parties for each other, which leads to a willingness to sincerely and openly discuss differences of opinion and, in this way, produce a quality project.To date, the joint venture is working well, and it appears that high quality design plans and specifications will be completed on time.