Minority-Owned Firms: America’s Key to the Global Marketplace
The Minority Business Development Agency (MBDA) did a deep dive into the 2007 Survey of Business Owner data released by the U.S. Census Bureau and found minority-owned firms are more likely to export compared to non-minority-owned businesses. Export activity of minority-owned firms spanned 41 countries, with Mexico, Brazil, and the Dominican Republic dominating the list. Across the oceans, minority-owned firms are also selling their products and services to countries that include Turkey, India, China and the Philippines according to data from the U.S. Export Import bank.
The Obama Administration has set a goal of doubling the nation’s exports in five years and minority-owned firms are playing a crucial role in meeting this goal. Further analysis of the Census Bureau data revealed that minority-owned firms were three times more likely to own firms that generate 100% of their revenue through exports than those of non-minority-owned firms. In addition to being more likely to export, minority-owned firms were twice as likely to have operations abroad when compared to non-minority-owned firms and publicly held firms.
These facts showcase the competitive asset minority-owned firms are to the U.S. economy.
What is the competitive advantage? Minority business owners in the United States look, act, and speak like the rest of the world. In fact, minority-owned firms are five times more likely to conduct business in languages other than English compared to non-minority-owned firms conducting business in a language other than English.[i] Multilingualism opens the door for new markets, new customers and new business partnerships. This attribute, combined with cultural knowledge and business acumen, allow minority-owned firms to go global with greater efficiency and, in turn, realize a bigger economic impact.
That is why MBDA is taking a lead, in concert with the International Trade Administration (ITA) and other federal agencies, to encourage greater export activity with the Nation’s 5.8 million minority-owned and managed firms. Through MBDA’s network of business centers and ITA’s export assistance centers, minority-owned firms have access to financing, market analysis, technical assistance and other services to help them expand their reach.
So, don’t delay. Grow your business, find new customers, and create new jobs by tapping into the global export market worth $1.8 trillion dollars. Find the nearest MBDA Business Center.
[i] Data on language use for business transactions may be overestimated. Minority-owned and non-minority-owned firms could select multiple languages, other than English, to reflect the languages used to conduct business. Source: MBDA analysis of U.S. Census Bureau data from the 2007 Survey of Business Owners.