by Kamau Austin www.einfonews.com The number of African American women business owners with bank credit of $100,000 or more doubled between 1998 and 2002 according to Wells Fargo's latest research collaboration with Center for Women's Business Research. Wells Fargo, the nation's #1 lender to small businesses, sponsored the report, "African American Women Business Owners in the United States," one segment of a multi-cultural study to understand the unique needs of women business owners of all ethnic groups. "The Center has shown that the number of African American women-owned businesses increased by 17% between 1997 and 2002, more than double the rate of all businesses," said Brenda Ross Dulan, Market President, Los Angeles Metro Region and National Spokesperson for Wells Fargo's African American Business Services program. The study has also shown that:
1) African American women, more than other women business owners, anticipate having an additional need for business financing in the coming year.
2) A much greater percentage of African American women business owners when compared to any other ethnicity surveyed -- say they did not borrow capital to start their firms. Nearly half of African American women business owners say they have encountered obstacles when trying to obtain financing for their firms, more so than women business owners of other ethnicities surveyed.
Minority businesses are growing six times faster than non-minority. Research from the Minority Business Development Agency of the U.S.
Department of Commerce suggests that minority businesses have little access to capital and few chances of bidding for and winning significant contracts from large firms. Despite these challenges, minority businesses are growing six times faster than non-minority firms, according to the Bureau of Census.
In 1997, more than three million minority-owned businesses were identified; 84,000 of these businesses posted annual revenues in excess of $1 million and employed more than 50 percent of their 4.5 million workforce. The minority population is the fastest-growing segment of the nation's population, with a buying potential projected at $1.5 trillion.
Posted By: Jon C.
Friday, August 15th 2008 at 6:56PM
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