Why minority Smalls have to supplement commodity offerings in IT and other saturated slow/no-growth sectors with true ‘value-added’ capabilities, and also step-up M&A

Even though the number of minority businesses has reached unparalleled heights, their proportion does not yet fully reflect the growing size and importance they represent to economic recovery in the United States.

Fueling the disparity is the fact that minority businesses are disproportionately represented in saturated, low-growth and no-growth sectors . They also tend to rely on personal debt, family financing and business loans over equity, and other tools that are otherwise commonly accepted in the capital markets.  As a result, minority businesses often lack the size, scale, and capabilities of their majority counterparts.

Specifically, to achieve greater size and scale and expand their capabilities, minority businesses must proactively close the gap by:

  • Building capacity and capabilities of minority businesses to provide more value- added products and services; particularly in federal government procurement
  • Expanding the use of mergers, acquisitions, and strategic partnerships
  • Fully accessing and deploying the capabilities of the financial markets for minority business development
  • Aggressively responding to major trends in global supply chain management

The minority Smalls that won’t or don’t make transformative changes to close the gap will ultimately fail.  The growth rate for these firms has already begun to slow, and as a result, limited number of jobs are being created by this small business demographic.

1 comment
  1. Yvonne Raphael-Fuqua said:

    Sorry to be critical but IMHO this blog post is incomplete. Specific suggestions as to steps that you perceive as remedies to this glaring problem would make this a 5-star post.

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