The year of 2015 is continually showing a vibrant montage for entrepreneurs in America. This is because of the boom in economy and constitution encouraging entrepreneurship among minorities. The American minorities are incessantly opting entrepreneurship over customary professions.
According to the Census report, 37% of the U.S. population is minorities, which demonstrate extensive escalation in minority-owned businesses. In addition, Census data reported that there’s an increase of 11.5 percent to 14.6 percent in the minority-owned businesses from 2002 to 2012.
The 2014 State of Women-Owned Business reported that there are 9 million Asian American-owned businesses, 8 million Hispanic-owned businesses, 258,100 Native American/Alaska Native-owned businesses and 5 million African American-owned businesses.
Challenge For Minority-Owned Businesses
Many minority-owned businesses are facing significant challenges after they move to non-minority assertive industries. The main question is how they can compete with its non minority-owned equivalents. Let’s take a closer look at the different challenges that minority businesses have to face.
Funding discrepancies are continuing scourging minority businesses. They have to face high borrowing costs, more loan denials and less access to capital. Unluckily, 2008 financial crisis had caused this tight loan restrictions challenge for minority businesses. However, the evolution of alternative lending platforms like Merchant Advisors offered opportunities for discriminated minority businesses to get fast business financing with affordable terms and rates.
Developing relationships and making business contacts are among the best ways to cultivate your small business. For a minority owned business, local Chamber of Commerce and business referral networking groups are good sources to start. Networking with networking groups can help a lot. This way you can highlight your business and can establish a solid foundation of building strategic partners and referrals.
Minority-owned businesses were unable to secure investment traditionally. According to a research, only 8.5% of minority-owned businesses pitched to investors in 2014. They are repeatedly being discarded or turned away. Fortunately, 2015 is turning things good for minority business owners. Due to the projected spending power of Investors, they are now willing to invest in minority-owned businesses. The investing landscape is also shifting since many minorities are becoming investors today.
Benefits For Minorities Owned Businesses
The trend of minority owned businesses is at rise in 2015. Federal government has administered that to set aside some contracts for minority, women and veteran-owned businesses in order to promote a fair business environment.
After a minority business gets certified from National Minority Supplier Development Council and Minority Business Development Agency, it can bid on certain contracts and projects.
The year of 2015 is offering numerous benefits for minority-owned businesses. You will find variety of resources to help fast business growth and success whether by spending in technology innovation, securing working capital or strategic partnerships.