Small Business Month has just concluded, but the dialogue about small business and its role in driving America’s economy continues to intensify. As a small business owner, I am glad to be a part of the formidable economic engine that is fueling our nation’s recovery. Of particular note is the diversification of the U.S. small business market, which is evolving into a multicultural reflection of our nation’s changing demographics.
As the hue of America continues to brown, we’re seeing more and more ethnic businesses launch, develop, and expand. Projections by the U.S. Census Bureau, along with the 2010 Census figures, are sure to further demonstrate this multicultural small business expansion, and a look at the figures from the government reports is indicative of this. According to the SBA’s February 2005 report, “Dynamics of Minority-Owned Employer Establishments, 1999-2001”, minorities own more than 3 million firms—99% of which are small businesses. These businesses are responsible for $591 billion in revenues. If we look closer at a breakdown of the individual segments, the percentages are as follows:
-Hispanic American: 40.2%
-Asian American: 28.1%
-African American: 28%
-Native American: 6.7%
These numbers are telling. Minority business owners are not only here, but we’re here to stay—and we are not only a presence in the market, but a force. When I opened the doors of Flowers Communications Group (FCG) nearly 20 years ago, the climate was a little different, but as FCG began to grow in its early years, so did the multicultural small business market. Between 1997 and 2002, the number of Black- and Hispanic-owned firms jumped a staggering 45 and 31%, respectively. During this same period, the number of women-owned firms grew by 19.8 percent, while all U.S. firms grew by seven percent. Expand this time frame two years, and the number of privately held firms owned by women of color grew by 54.6%, while the overall number of U.S. firms rose only nine percent. These are all highly impressive, very noteworthy statistics.
When I look at the business horizon over the next decade, I am excited by the parallel tracks that multicultural small business growth and multicultural consumer growth present. As a firm that specializes in multicultural marketing communications, we help our clients to reach the African-American and Hispanic markets. The opportunities available within these two segments are endless. Just look at some of the numbers: According to a March 2010 study from The Nielsen Company, of the total $299 billion in multicultural opportunities in the consumer packaged goods (CPG) space, African Americans account for $129.7 billion and Hispanics for $136.3 billion. In ten years, the projections are expected to increase to $158.7 and $166.8 billion, respectively. And, as the American multicultural segments continue to expand to include several other ethnic groups, it’s important that our focus is all-inclusive, because we as a collective are America.
After I started FCG, many people asked me the same question: “Why leave the comfort of a corporate environment to hang up your own sign?” The answer was simple then, and still is today: Because I knew this was my route. That this was my destiny in life—to be a part of the small business movement, and help fuel America’s economy. It not only presented an amazing opportunity for me, but for many other talented individuals—many of whom are still with me to this day. My entrepreneurial spirit came from my father. However, he had children, and couldn’t necessarily take the risks associated with entrepreneurship. So, starting a small business was never just about me, my dream, and the opportunities presented to me—but part of something much bigger. As FCG approaches 20 years and running, it’s nice to reflect on the growth of the small business movement which I have been a part of and supported. And, it is truly rewarding to me as a female, African-American small business owner to see how far we have come, and how much impact small businesses in every community have had, and will continue to have, on driving the U.S. economy.
Michelle Flowers Welch | President and CEO
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