Since 1982, the U.S. President has proclaimed a National Minority Enterprise Development (MED) Week to recognize the outstanding achievements of minority businesses and to honor those corporations and financial institutions that support minority business development. This year, National MED Week is August 18-24.
The need to encourage minority enterprise is explained in Race and Entrepreneurial Success, authored by Dr. Robert Fairlie. In an interview by a representative from the Federal Reserve Bank of Atlanta, Dr. Fairlie says, “Small-business ownership is extremely important for a number of different economic outcomes. It’s very important for wealth accumulation. It's also very important for job creation. Small businesses create the majority of new jobs out there. And also, for just overall economic development. If there's any community of [businesses] owned by a specific group, say a minority group, that is underrepresented in business ownership, that's going to have a negative impact on economic development in the long run.
“One of the things that I wanted to look at was the effects of local labor market conditions on business creation. The idea is, if you live in an area, or during a time when local labor market conditions are bad, in terms of high unemployment rates, does that create individuals to start businesses? What I find is that it does have a large effect—if you increase the unemployment rate in a local labor market by five percent, that increases business creation by roughly 15 percent.
“What are the determinants of business success—specifically among smaller businesses that are not kind of large corporations? One of the factors that we found to be the most important was access to financial capital. Another factor that was extremely important was human capital, in terms of how educated the business owner is. And then, finally, a new finding was whether or not you had an extensive family business experience. So, if you worked in your parents' business, that had a big effect on whether or not your ultimate business would be successful.
“We need to provide training or entrepreneurship apprenticeship-type programs that provide experience working in small businesses, working in industry-specific types of jobs that allow individuals who don't have a family-business experience to overcome that deficit and be able to get the kind of experience that will help them create long-term businesses.
“And finally, like in many other areas in the labor market, we need to eliminate discrimination. We still need to continually combat discrimination that occurs either through embedded social networks, these kind of ‘old boy’ networks, and things like that. [For] those, we still need to work on removing those barriers.”
To celebrate the spirit of minority enterprise, the presidential proclamation declares, “Our Nation thrives when we fulfill the promise of opportunity for all—when each of us has the same chance to succeed, when every American can find pride and independence in their work, when our shared prosperity rests upon the broad shoulders of a rising middle class. With talent, dedication, and bold ideas, minority entrepreneurs reach for that promise. They bring jobs and services to communities across our country. They innovate and create. They open new markets to goods stamped "Made in the U.S.A." During Minority Enterprise Development Week, we celebrate their essential role in our economy and our communities.”
As an LPGN IBO, you are the recipient of a business opportunity resulting from the innovative spirit behind a family-run minority enterprise! Celebrate the opportunity and set your intention to achieve a higher level of success!