Growing Ethnic and Minority Businesses in the United States Is Good Business for America We must do more to help minority businesses prosper. It's good for a burgeoning US minority population, but it's even better for the American economy as a whole. Consider the facts. Over the past several years, the growth rate for minority firms has exceeded those of all US firms, both in the number of firms and in revenues. Between 1992 and 1997, for example, the number of minority-owned firms increased 29.6 percent, as compared to 3.9 percent for all US firms. In 1997, there were more than 3 million minority-led firms and, of that number, 84,000 have revenues in excess of $1 million and many are in high-growth industries, including high technology and health services. Firms of this size, representing 55 percent of the jobs and 65 percent of the revenues of minority firms, are an important part of local and regional economies, not to mention the overall US economy. The economic importance of minority firms becomes even more compelling when one considers current US population trends. Minorities, who now comprise nearly 30 percent of the US population, will grow to more than 50 percent by the year 2050. From now until 2050, 90 percent of the growth in the United States population will be in the African-American, Hispanic, Asian-Pacific Islander or Native-American communities. This growth will be particularly significant in specific geographic areas, such as California, Texas, Florida, and New York. Since minority firms tend to hire a larger percentage of minority employees than do majority firms, the growth of minority firms is and will continue to be integral to the employment growth, revenue growth, and economic prosperity of our nation. President Bush understands this. That is why he has asked for an eighteen percent funding increase for the Minority Business Development Agency in fiscal year 2005, representing the first hike in the Agency's budget since [give the year]. That is also why President Bush's economic growth plan calls for new incentives to help small and minority-owned businesses grow in an environment that is less encumbered by the regulations, taxes and red tape that can kill off a young business and undermine the spirit of innovation and entrepreneurism that has made this country great. Minority-owned businesses present an historic and dynamic growth opportunity for the United States economy. The facts clearly demonstrate that in order to continue to enjoy the kind of economic dominance and the healthy growth rates that Americans have come to enjoy over the last century, we all need this surging ethnic and minority population to be a vital part of the mainstream economy. Anything less is just plain bad for business. By Ronald N. Langston National Director Minority Business Development Agency

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