Businesses are the driving force behind any advanced society. In fact, productive industry is what separatesadvanced societies from non-advanced societies. They drive society more than any other entity. Negative factors like poverty, lack of educational attainment, criminality, high unemployment, poor health care, etc. can be correlated to nonproductive industry. For these reasons, we proactively support Black-owned businesses by providing resources and encouraging strategic alliances among them as a means to offer value-added services to their customers and to become more competitive within their respective industries. We will work with business leaders that have a vision to grow their workforces, enter into new industries, and who are willing to join alliances with complementary businesses.
To what degree do Black-owned firms contribute to the US economy?
In 2002, there were 1.2 million black-owned firms in the U.S., employing nearly 754 thousand persons and generating nearly $89 billion in business revenues. These black-owned firms accounted for 5.2 percent of all nonfarm businesses in the U.S., 0.7 percent of their employment, and 0.4 percent of their receipts. (Survey of Business Owners – Black-Owned Firms, 2002)
In other words, Black-owned firms employ 7 out of 1000 workers in nonfarm, private companies while they generate $4 for every $1000 generated by similarly situated non-Black-owned companies. If we included publicly traded companies not controlled by Blacks, these numbers would be even worse. Contrast our $89 billion in annual sales to Cargill’s $106 billion (Forbes.com). One private, non-Black-owned firm made more money than all private, Black-owned firms combined. If we included publicly traded firms, General Electric had sales of nearly $132 billion in 2002 and employed 312 thousand people (Forbes.com) or 41 percent of the number private, Black-owned firms employed.
Despite many initiatives and programs designed to promote business activity for Black-owned firms, they are least likely to survive after four years (27% versus 22.5% for White-owned businesses) and are least likely to provide employment for others (11% versus 21%)(Fairlie, 2009). For these reasons, we have developed two programs: (1) the Strategic Alliance and Partnership Program (SAPP) and (2) the Capital Access Program (CAP).
BMTT Programs
Strategic Alliance and Partnership Program (SAPP)
Purpose. SAPP helps Black-owned organizations to become more competitive, more productive, and more profitable.
Objectives.
1. To provide knowledge sharing, coaching, and networking opportunities for small and medium sized businesses.
2. To expand the growth of strategic alliances among Black-owned organizations and Black professionals.
3. To improve visibility and access to products and services sold by Black-owned businesses.
4. To increase knowledge and awareness of strategic alliances such as joint ventures, outsourcing, licensing, affiliate marketing, franchising, and distributorships.
Capital Access Program (CAP)
Purpose. CAP helps Black-owned organizations to secure business capital and financial management expertise.
Objectives.
1. To identify private equity and venture capital firms and professional investors and link them with small business owners that have expressed a desire to start or expand a business.
2. To assist small business owners by providing them with technical expertise.
3. To provide small business owners with educational courses, products, and services that assist them in building credit, securing capital, and managing finances.
Some of the following services help us to achieve our economic development initiatives.
- Mii Capital Connect® (Under development)
- Mii Trade Connect® (Under development)
- Mii Web Course® (Under development)
- Mii Licensing Deal® (Under development)
Note: Currently, we provide access to each of these services through third party sites. However, we are developing these Web-based services to meet the specific needs of Black-owned establishments. If you are interested in these endeavors, please join our mailing list to be kept informed about our progress.
References
U. S. Census Bureau. (2009). Survey of Business Owners – Black-Owned Firms, 2002. Census.gov. Retrieved from http://www.census.gov/econ/sbo/02/blacksof.html.
Forbes.com. (2003). Forbes largest private companies 2003. Forbes.com. Retrieved from http://www.forbes.com/finance/lists/21/2003/LIR.jhtml?passListId=21&passYear=2003&passListType=Company&uniqueId=5ZUZ&datatype=Company
Forbes.com. (2003). Forbes 500s 2003. Forbes.com. Retrieved from http://www.forbes.com/finance/lists/38/2003/LIR.jhtml?passListId=38&passYear=2003&passListType=Company&uniqueId=UINP&datatype=Company
Fairlie, R. (2009). Economist deciphers racial disparities in business ownership. UC Santa Cruz, Division of Social Sciences. Retrieved from http://socialsciences.ucsc.edu/news_and_events/view_news.php?id=57