Minority Only Investment Capital: Opportunity or a Stigma

Entrenuity Info - Monday, March 23, 2009
Many new businesses need start up capital to operate the business successfully and to sustain operations. However, finding those to invest in a business, much less a start-up, can be a very challenging process. In light of the challenges faced by the current American economy, constant layoffs, and frustration with finding a new job, many are turning or "returning" to one of the freedoms the United States offers -the ability to start and operate your own business with limited government interference. Given this freedom and the history of our country specifically towards African-Americans and women, should there be investment captial from the federal or state government agencies specifically for minority owned businesses? By having investment dollars targeting minority owned businesses, does that create a stigma for the business that could possibly limit the businesses appeal to majority culture consumers?
Comments
Shonika Proctor, TeenBizCoach commented on 12-Apr-2009 08:38 PM
I don't believe there should be a set aside for minorities. However, I do believe there should be a set aside for young entrepreneurs especially those under 18 who cannot apply for funding or loans. Scholarships for college cater to about 1/3 of them who may take that route. The schools have basically taken away many of the trade programs leaving them with little or few options for career, leadership and workforce development. I think the problem has gone beyond the inner city. Drop out rates are as high in the suburbs are they are in distressed areas. Young people are at the greatest disadvantage especially now. Many of them are tech savvy and are naturally entrepreneurial minded because they are used to fending for themselves. The problem is obviously regulating those funds and having metrics in place so that 'unscrupulous' individuals are not taking away from them. If there could be a way to establish such a program this would be a great way to truly restimulate the economy. @teenbizcoach www.teenentrepreneurblog.com
Lawrence S. Jenkins commented on 18-Jun-2009 12:26 PM
I will respond in the following manner- In my years of travel as a US Marine and now a civilian. I find myself becoming angry when I look left and right while driving US highways. My anger sets in when I think about who as slaves built the mansoons you often see. I think of the hardships my people have endured. I think of the thousands acres of land purchased at the cost of hardly nothing that we farmed as slaves. And to date we have never received the FORTY ACRES AND THE MULE PROMISED. Yet this country that I served as a combat Marine for two years in Viet Nam has made restoration to other ethics groups for ill treatment following WWII and many screamed when the mention of restorarion was given thought to my people. Yes this government should support MINORITIES if for know other reason but the fact we have earned it. And I am not the type nor will ever become one that says give it me because I am BLACK if I have not shown justification.
Michael McRoy commented on 24-Jun-2009 06:08 PM
Forget the history of oppression we've been forced to endure what about the forms of subtle racism and oppression that we continue to endure. If federal/government funded investment capital is necessary to counter act the years of physical, mental, social, and economic oppression suffered by the African American community than by all means put it into action. Do I think it will actually change the likelihood that African Americans will begin to receive equal treatment? Of course not! It will still be hard for us to obtain these funds as it is to obtain grants. If the investment funds become a reality other pitfalls will be set in place in the guise of preventing fraud. As long as the mentality people have towards blacks continues to persist all the programs, grants, and specially funded investment ventures won't do a thing.

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