Minority-owned businesses continue to shine as the engines of job growth in the United States economy. These businesses provide nearly six million jobs, and annually generate $1 trillion in economic output. Supporting this output is the Minority Business Development Agency (MBDA), a bureau in the U.S. Department of Commerce. MBDA is the only federal agency tasked to promote the growth and global competitiveness of minority-owned firms. MBDA assists minority-owned firms in gaining access to capital, contracts and new domestic and international markets.
One important sector of the minority business community is the franchise sector. The following report, commissioned by the International Franchise Association, offers a beneficial analysis and a unique insight into the trends of minority-owned franchised businesses. Since 2007, the last year the report on Franchised Business Ownership was published, more minority entrepreneurs have utilized the substantial benefits of franchising as a vehicle to expand their wealth base. According to data from the Census Bureau, minority ownership of franchised businesses increased by 1.2 percentage points, and joint ownership (male/female) increased by 7.3 percentage points. Minority entrepreneurs also own franchise businesses at a higher percentage than non-franchised businesses—a difference of 6.3 percentage points between minorities who owned franchised businesses and minorities who owned non-franchised businesses.
Today, we operate in a global economy and whether you own a franchise business or not, you have to think in terms of partnering arrangements, acquisitions and the global expansion of your services if you want to grow. We encourage you to read this report and take advantage of its findings. We also encourage you to consider a franchise business as a vehicle to achieve financial independence. There are thousands of excellent franchise business structures in the marketplace, but it’s important that you find one that best leverages your skills, interests, vision and financial capacity so that you can grow your business and create new jobs—our nation depends on you.
I also encourage you to join the growing number of minority-owned firms that are taking advantage of the premium business consulting services offered through MBDA’s nationwide network of nearly 50 MBDA Business Centers and offices. Visit our website at www.mbda.gov/ main/offices and find an MBDA Business Center near you. Our business centers are designed to help you grow your business so take advantage of the services that they offer. Let the MBDA team assist you in taking your business to the next level through capital and contracting opportunities, and access to new markets.
On behalf of the Minority Business Development Agency, I extend a special thanks to the International Franchise Association for their continued effort to increase the number of franchises owned and operated by minority entrepreneurs and expand economic opportunity for all Americans.