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December 03, 2004
Landmark Study on Self-Employment Among Women, Latinos and Blacks
The Office of Advocacy of the SBA released a long-term study showing that entrepreneurship has proven to be a path to independence for women, Latinos and blacks over the past 25 years in America.
"Self-employment is a critical part of our economy," said Thomas M. Sullivan, Chief Counsel for Advocacy. "Self-employment provides the main source of income for a diverse group of over 12 million Americans. The increase in self-employment rates for women, blacks, and Latinos show that small business ownership can move minorities and women further into our economic mainstream."
"This study provides definitive evidence for the growth trend we've seen in entrepreneurship over the years," said Robert Hughes, president of the National Association for the Self-Employed. "Particularly strong among women, blacks and Latinos, these numbers help to better quantify the appeal of self-employment and the impact this segment of the small business population has on the economy."
The report delves into the data behind published figures from the Bureau of Labor Statistics (BLS). Unlike BLS figures, this report includes incorporated as well as unincorporated self-employed. The study found that over the period studied the self-employment rate increased 33 percent for women, 37 percent for blacks, and 15 percent for Latinos. The white rate increased ten percent while the male rate increased two and a half percent.
This is clearly a landmark study on the role that self-employment and entrepreneurship can make as a public policy tool. So how do we move ahead? There are two strategies that need to be followed to assure that this trend continues and that these entrepreneurs have every opportunity to succeed.
First, we need to offer educational programs to support this activity. Entrepreneurship is a process that can be taught, and with such education the evidence clearly shows that their success rates will dramatically improve. This is particularly true if attention is paid to education during and about the pre-venture stage. Teach them how to choose a truly feasible business and teach them how to effectively position it in the marketplace.
Second, we need to get government out of the way of entrepreneurs as they continue to move this economy ahead. We need to continue to push for flexibility and streamlining of government regulation as it impacts small businesses and simplify our tax code. The Regulatory Flexibility movement, which assesses impact and cost-effectiveness of legislation on small businesses, has made progress but needs to be enacted in every state. With the clear mandate in the recent election, legislation such as the Fair Tax needs to be enacted to eliminate the growing burden that compliance with the current tax system places on most Americans and particularly on small business owners.
Posted December 3, 2004 08:02 AM
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Comments
While this report may signal a positive note on the entrepreneurial landscape, the truth is not so friendly. Women are still ignored, discriminated against, and treated as invisible in the greater world of business. Aggressive, pushy women often succeed, but get slapped with that familiar "bitch" lable. As I build my business into a successful model I hope others can emulate, I am bothered by the number of other women who--lacking the support structure (of females and males who believe in me) that I have built over the years-- are not able to get their businesses off the ground. I am constantly emailed by women hoping to go into business for themselves, but getting blocked at every twist and turn...because they are women, and banks don't want to talk to them, VCs ignore them, and even friends and relatives say, "Get a real job." Education is one answer, getting government out of the way, is another. However, these women need mentoring and hand holding from some Good Old Boys who understand the power of women in the 21st century. Who wants to step up to the plate?
Posted by: Yvonne DiVita at December 4, 2004 11:31 AM
at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
