Today's Date: February 4, 2023
Scottsdale Tesla Drivers Club and PS Academy Arizona Work Together on Tesla Cybertruck Build   •   Experiences of Black Women With Breast Cancer Highlight Need for Better Care, Improved Outcomes   •   F45 TRAINING 72 HOUR DEADLINE ALERT: Former Louisiana Attorney General and Kahn Swick & Foti, LLC Remind Investors With Loss   •   General Dynamics Elects Richard Clarke to Board of Directors   •   Government of Canada to support clean air and local economic growth by powering federal operations in Alberta and Saskatchewan w   •   NEWAGE DEADLINE ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against NewA   •   NASA Awards Millions to Historically Black Colleges, Universities   •   F45 DEADLINE ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against F45 Tra   •   NEOGENOMICS 72 HOUR DEADLINE ALERT: Former Louisiana Attorney General and Kahn Swick & Foti, LLC Remind Investors With Losse   •   SILVERGATE DEADLINE ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against   •   Joaquin Sabina in USA   •   INOTIV INVESTIGATION INITIATED by Former Louisiana Attorney General: Kahn Swick & Foti, LLC Investigates the Officers and Di   •   Accutar Biotechnology Announces FDA Clearance of IND Application for Phase 1 Trial of AC0676 in B-cell Malignancies   •   International Thriller "Nine" Set in Accra, Ghana Produced by Silver Lining Entertainment and Directed by Chris Attoh, Premieres   •   SHAREHOLDER ACTION ALERT: The Schall Law Firm Encourages Investors in Atlassian Corporation with Losses of $100,000 to Contact t   •   Boston Celtics and Sun Life close out 9th annual Fit to Win youth program with Celtics forward Justin Jackson at trampoline park   •   U.S. FDA Approves Takeda’s TAKHZYRO® (lanadelumab-flyo) to Prevent Hereditary Angioedema (HAE) Attacks in Children 2 Y   •   C3 AI Commits to Net-Zero Greenhouse Gas Emissions by 2050   •   Greenberg Traurig's Chinh H. Pham on Get Konnected! List of Boston's 50 Most Influential Asian-American Pacific Islanders   •   US Fertility founding partner Shady Grove Fertility (SGF) announces Egg Freezing for Surgical Residents Program in celebration o
Bookmark and Share

Minority Business Seen As Future Bedrock Of Economy

NEW YORK - Minorities will become the majority of the U.S. population by 2045. When they do, they will also become the majority of America's workforce, supply chains, and entrepreneurial economy. Their success in creating wealth will determine the fortunes of the nation and everyone within it, according to James H. Lowry, a senior advisor at The Boston Consulting Group's (BCG).

Black News, African American News, Minority News, Civil Rights News, Discrimination, Racism, Racial Equality, Bias, Equality, Afro American NewsLowry warns, if America does not make minority business success a national priority, the U.S. economy and standard of living will stumble as they run headlong into a critical shortage of skilled entrepreneurs.

Yet, America is unprepared for this major demographic shift that will affect near-term economic recovery, and long-term competitiveness, he says.

Outdated policies on the part of business and government ignore the problem, and in some cases make it worse: They focus on grants to minority businesses of non-essential and low-value work, and they do not provide sufficient working capital or expertise to help minority businesses successfully scale up.

"Instead, a successful program should correct shortcomings in basic education, access to capital, business management skills, and access to mainstream supply chain opportunities," said Lowry, who teamed with Leonard Greenhalgh, director of programs for minority- and women-owned businesses at the Tuck School of Business at Dartmouth, to write  "Minority Business Success: Refocusing on the American Dream."

America cannot restore its national competitiveness, and national competitive advantage, without paying attention to demographics and the ability of the nation's human capital to compete in the global economy.

If the U.S. does not foster minority inclusion, and do everything it can to ensure their success, the impact will extend beyond the minority community to constrain gross domestic product and national affluence, the authors argue.

Lowry and Greenhalgh underscore the urgency of the issue of minority under-participation in the U.S. economy. It's a matter of demographics and national competitiveness, they say, and make the case that minority business development needs to be a national priority: the U.S. needs to start now, go big, and take an entirely new approach.

"The world has changed, and we need to adjust to the new economic realities we are seeing," says Lowry. "We've achieved some positive milestones, but minority underachievement is still a huge problem -- one that could threaten the health of our economy, not to mention America's legacy as the world's leading entrepreneurial culture."

• National Industrial Policy is a "Must Have": The authors argue that America needs a coherent, coordinated industrial policy -- one focused on national competitiveness and led by the White House -- of which a key part would be minority business development.

• Start-Ups Have to Survive, and Grow, to Create Wealth: Increasing available capital is just one requirement for building successful minority businesses: Those investments also need to generate long-term revenue streams and wealth creation. Minority businesses need to be developed -- i.e., have the access to the skills and resources to see them through the entire growth curve: from start-up, through scale-up.

• U.S. Corporations Live or Die by Their Supply Chains, and Minority Procurement Mandates Don't Cut it: Competitiveness is built on successful supply chains. So it is in the interest of American companies to support and develop minority businesses. The current approach of issuing procurement mandates is not achieving results: it relegates minority businesses to low-value, peripheral work; doesn't help them build skills, scale, or financial stability; and can sometimes even hasten their demise. American business must do better, using strategies of investment, partnership, and mentorship.

• Most Diversity Programs Are Too Little Too Late: Government and private sector support programs for minority business were built for a different era: Simple purchasing mandates and start-up help are no longer enough. New programs need to address three key challenges: access to contracts higher up in the value chain, improved availability of capital (access and cost), and shoring up a business knowledge deficit through mentorship and consulting. In addition, administrative demands need to streamlined (e.g., certification).

• Any Rebirth in U.S. Manufacturing Because of Rising Wages in China Could be Short-lived:With the wage gap with China shrinking, and work rules in some U.S. states growing more flexible along with increased government incentives for businesses, the U.S. could experience a rebirth of manufacturing. But it could be short-lived if shifting demographics and the need to move minorities' businesses into the heart of the supply chain aren't addressed.

Lowry emphasizes that minority business development should not be driven by national guilt, or philanthropy, or sympathy -- it is a demographic and competitive necessity.

"Wealth flows out of lackluster economies into the coffers of nations that do a better job of value creation," says Lowry. "And America won't prosper without a comprehensive strategy for doing better. We cannot move forward with an ad hoc strategy that leaves half our economic engine idling."

 


STORY TAGS: Black News, African American News, Minority News, Civil Rights News, Discrimination, Racism, Racial Equality, Bias, Equality, Afro American News

Video

White House Live Stream
LIVE VIDEO EVERY SATURDAY
Breaking News
alsharpton Rev. Al Sharpton
9 to 11 am EST
jjackson Rev. Jesse Jackson
10 to noon CST


Video

LIVE BROADCASTS
Sounds Make the News ®
WAOK-Urban
Atlanta - WAOK-Urban
KPFA-Progressive
Berkley / San Francisco - KPFA-Progressive
WVON-Urban
Chicago - WVON-Urban
KJLH - Urban
Los Angeles - KJLH - Urban
WKDM-Mandarin Chinese
New York - WKDM-Mandarin Chinese
WADO-Spanish
New York - WADO-Spanish
WBAI - Progressive
New York - WBAI - Progressive
WOL-Urban
Washington - WOL-Urban

Listen to United Natiosns News