Problems Faced By African American Businesses

It would only be fair to invite bids from black-owned businesses. However, the fact remains that although African-Americans represent 13.4% of the total US populace, only 5% of businesses are owned by them and they account for hardly 0.5% of the total business in financial terms. These figures become even more offensive keeping in view that other minorities in the US do not suffer as much. For example, Hispanic-Americans, accounting for 11.9% of the US's total population, own as much as 7% of businesses. Asians too, who account for 4.5% of the total US's population also own 4.5% of the businesses.

African-Americans face more challenges and fewer opportunities than any other ethnic groups in this country. Therefore, as long as more American businesses do not come forward to buy from black-owned business and embrace a greater degree of supplier diversity, African-American entrepreneurs will continue to face the same dim future in the American business sector.

Another interesting characteristic of the American business sector happens to be the failure of black-owned businesses in their first four years of business. This trend amounts to almost 20% more in comparison to white-owned businesses. Black-owned businesses also get lesser capital help as compared to white-owned businesses and are almost four times more vulnerable to credit denial. In addition to this, there is no such possibility for the African-Americans to benefit from multigenerational families, other business and social tie-ups that often result in corporate partnerships in the US.

In corporations, one frequently discussed topic is supplier diversity, but it is seldom achieved. The federal government has also announced a mandate for the federal agencies to do business worth 8% with disadvantaged and other minority-owned businesses, including black-owned businesses. This was done way back in 1978.

This created an active outbreak within the government, followed by other repercussions obvious in the rest of the corporate world. Many companies readily adopted the supplier diversity program, but often remained restricted in staffing. Naturally, the black-owned companies remained fewer in number and smaller (92% of all the black-owned companies have no employees), thereby receiving a disproportionate share of the business pie.

This triggered a general tendency of black-owned vendors not receiving enough supply roles within the corporate field, especially when it comes to professional services, frequently based beyond traditional procurement processes. Another sad end of the story remains the bias against African-Americans as being labeled as corporate incompetence. Most corporate organizations are also of the belief that practicing supplier diversity will stretch the company investment. However, statistical data prove quite the opposite and companies that have embraced the program, have been known to have gained more returns on their investment.

This problem needs to be addressed at a practical level or lesser number of black-owned business enterprises would mean fewer job opportunities for these minorities in the US, further lessening hope for the multicultural utopia.

Category:

Howto & Style

Tags:

• black
• wealth
• building
• secrets
• to
• money
• making
• home
• business

[bhabeney]

@fmcneillii What you fail to realize is this is targeting one specific race...Black people. Thats clearly racist. How can you people continue to beg, plead, and pledge for equality when you continue to separate yourselves?

[fmcneillii]

@bhabeney man shut the fuck up!!! Take your ass somewhere else if you think it's racist.

[SmartNetMedia]

This is great video. Thank you for sharing!

[DPVNStation]

DPVN at the heart of your business and a beet away from your destination.

[tamaduni]

WHAT NEGROS LUCK IS AN IDENTITY A LOVE OF SELF AS A PEOPLE WORLD WIDE ---THIS WAS BROUGHT ABOUT BY THE DISTORTION OF AFRICAN HISTORY ENSLAVEMENT AND COLONIALISM ----THAT IS WHY WE ALWAYS WANNA SWIM IN OTHER PEOPLES POOLS ARE RIDE IN THEIR BUSES INSTEAD OF HAVING OUR OWN

[labandme]

The problem with negros is they don't support other negros...in business, home life or common sense. All other races support their own. Negros kill each other and 90% of their thought process is made up of getting high or getting laid. Todays negros can't hold a candle to their forefathers who fought for their freedom and their civil rights. You should all be ashamed of yourselves. Looking after your children and contribute to society would be a good start.

[nomorales2k8]

I guess actions(Disparate Impact and A Capitalistic Society predicated on race) speak louder than words(This Vid).

[bhabeney]

Ok so what it this about? A pep talk for BLACK people to succeed? A pep rally for a specific race to succeed rather than people in general to succeed. Pretty racist to me.

[blakkbandit22]

Hey BW777, what's the name of the guy in the video ?

[magiccashlady]

Amen to that. I am happy because Im doing my best everyday.

Atarah The Magiccashlady

Team Fury Power