Denis Opudo
The latest data series released by the US Bureau of Labor Statistics (BLS) Business Employment Dynamics (BED) indicated that the number of job opportunities and businesses in America is on a gradual decrease. The data came from the primary source of information on the labor market. The number of jobs created has gone down from 4.1 million in 1994 to 3 million in 2015. According to the study carried out by the National Bureau of Economic Research (NBER), the startups’ activities in the US have been on a decline for around three decades. This is
The trend in the US is attributed to the high number of debts in the country. Good examples include the increased taxes and student loans. But there are still exceptions for businesses launched by few entrepreneurs. This is specifically Americans of African origin. According to a report released by Kauffman Foundation, the share of black Americans entrepreneurs from 1996 to 2016 increased from 8.43% to 9.24%. This is despite the high number of new entrepreneurs being Whites. The number is still growing higher. The report came out at the foundation’s 2016 Startup Activity Index. This was an indicator of new businesses created in the United States black American entrepreneurs are starting businesses at a high rate compared to the whites and other minorities. This is according to the Global Entrepreneurship Monitor. There was an underestimation of black entrepreneurs over the last decades. But this did not last for too long. Many researchers showed that there is a huge change in the trend. The changes have helped to improve the world economy with a bigger percentage.
Black entrepreneurs are creating businesses out of a great need. This is because many of them got a low education and they also start a business with a short-term potential. It might also be due to access to inadequate financial resources to continue operating. They might also be in an environment which does not favor business survival. This is according to a professor of entrepreneurship at Babson College Donna Kelley. The reasons might raise some concerns. But the black entrepreneurs only require support to help improve the economy. Venture capitalists and acquisition markets must ease access to capital to make it a success.
There is an increase in the number of blacks in America. This also leads to an increase in their purchasing power. Their economic influence also goes high. The time is ripe for companies to deeply link themselves to the blacks. The black consumers and producers produce more than 400 billion dollars in annual revenue. They also produce above 49 billion dollars in state, federal and local tax revenues. This is according to National Minority Supplier Development Council (NMSDC) and the Institute for Thought Diversity (ITD). America can use the higher number to get above the likes of China and Japan in their economic growth. The two countries are competing with America as the most economically powerful countries. Moreover, the African Americans entrepreneurship spirits have been higher than before. This might be contributed to black role models like Oprah Winfrey.
