5 NATIONAL URBAN LEAGUEEntrepreneurship and minority businesses are critical to the future well-being of America, to its economic survival, and to maintain global competitive advantage:According to the SBA’s Office of Advocacy, in 2012, eight million minority-owned businesses (Black, Hispanic, Asian, and American Indian) contributed $1.38 trillion in revenue and 7.2 million jobs to the economy. During the economic recession – from 2007 – 2012 – a net two million minority-owned businesses were created, while a net one million non-minority-owned businesses closed.Despite this, MBEs have failed to realize their full economic potential. Although census data shows that Black-owned businesses are growing in number at a faster rate than for any other group:• 97% of Black-owned businesses had annual receipts greater than $250,000 per year• 85% of Black-owned businesses had greater than 10 employees• Black-owned businesses generate 43 cents on the dollar compared to white-owned firms RECOMMENDATIONSA. INCREASE ACCESS TO CAPITAL FOR SMALL, MINORITY- AND WOMEN-OWNED BUSINESSES• Expand public and private support for community development financial institutions (CDFIs) who lend to small, minority- and women-owned businesses.• Reform and expand incentives for private equity, hedge funds and asset managers to increase capital made available to small, minority- and women-owned businesses.• Enforce federal requirements that mandate federal departments to increase contracting and procurement opportunities for small, minority- and women-owned businesses.• Reform the SBA in order to increase access to capital for small, minority- and women-owned businesses.• Maintain the provisions of the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) and support a permanent authorization and expansion of New Market Tax Credits.• Protect the provision within the Dodd-Frank Wall Street Reform and Consumer Protection Act that requires banks to gather information about applicants for commercial loans so that fair lending laws may be enforced and community development needs and opportunities of women-owned, minority owned, and small businesses may be identified.• Increase funding for the Economic Development Administration and the Minority Business Development Agency.• Promote and expand public-private partnerships like the National Urban League Entrepreneurship Centers model and the Goldman Sachs 10,000 Small Businesses SMALL BUSINESS & ENTREPRENEURSHIP
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