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					                  The Southern California

                     Minority Business Atlas
                                            A Resource Guide to
                                            Minority Owned Small Business
                                            in Los Angeles and Orange County




Produced by the Community Development Technologies Center
with support from Merrill Lynch & Co. Foundation, Inc.
Significance of Study

This is an in-depth look at six of the largest racial/ethnic
business communities in Los Angeles and Orange
Counties

  Fills the information gap on the largest growing business
 segment in Southern California;

  Identifies the unique assets and challenges of six of the




                                                                   The Minority Business Atlas
 region’s largest minority business communities;

  Establishes a database of over 70,000 minority businesses
 from various sources;

  Produced by minority-owned businesses themselves.



                                                               2
General Findings:
Minority Businesses Lack Access to Larger Regional and Economic
Opportunities



 Growth Industries (participation rates in “growth” sectors”)



 Business Networks (participation rates and success indicators)



 Market Opportunities (ethnic and geographic)




                                                                       The Minority Business Atlas
 Key Business Services (marketing, utilization rates, success
factors)




                                                                   3
        Growth Industries: Minority vs. Non-Minority Business
        Participation Rate within Key Sectors

Minorities are least represented in
the region’s growth sectors.
Entertainment represents less than
3% of total number of minority
businesses, compared to 7.6% for
non-minority businesses. High-tech
manufacturing (electronics,
transportation / instruments, metals)
represents less than 5 percent of
total minority businesses, compared




                                                                    The Minority Business Atlas
to 10 percent for non-minority
businesses. In health services,
minority businesses are comparable.




                                                                4
Business Networks

Minority businesses evidence generally low levels of participation in various
business networks. 36% indicate participation in a business seminars,
workshops, lectures; 22% participate in professional/ trade/ industry
associations; 21% participation in a local chamber of commerce and
business networking events.

Local Chamber of Commerce                                      21%
Ethnic Chamber of Commerce                                     12%




                                                                                    The Minority Business Atlas
Professional, Trade, or Industry Association                   22%
Business Mentorship Programs                                   14%
Business Networking Events                                     21%
Business Seminars, Workshops, Lectures                         36%




                                                                                5
Market Opportunities: Strong Dependence of Local Ethnic
Consumers


Over one-third of minority businesses indicate that over 75% of their market
base are from ethnic customers.
Percentage of Business From Ethnic Customers




                                                                                   The Minority Business Atlas
                                                                               6
  Business Assistance Needs
Minority businesses overwhelmingly identify marketing as the primary
business need for their enterprises; 30% of businesses identify marketing as
an area for business assistance. 40% indicate no business assistance needs.




                                                                                   The Minority Business Atlas
                                                                               7
Financing and Capital Usage


In general, minority businesses utilize high cost and self-financing
mechanisms as the primary source of capital.


Sources of Financing Used
   Bank Loans                                34%
   Credit Cards                              41%
   Brokerage Firms                           10%




                                                                           The Minority Business Atlas
   Government Loans                           5%
   Personal Loan (friends/family)            22%
   Trade Credit                              27%
   Asset Financing (Factors)                  5%
   Home Equity Loan                          14%


                                                                       8
 Financing and Capital Needs
Minority businesses have indicated financing needs in real estate acquisition
(17%), equipment purchasing (14%), and working capital (12%). 41% report
no capital needs and uses.


          Capital Needs and Uses

          Real Estate Acquisition/Financing                  17%
          Equipment Purchasing                               14%
          Marketing                                           7%




                                                                                    The Minority Business Atlas
          Research & Development                              3%
          Working Capital                                    12%
          Others                                              2%
          None                                               41%



                                                                                9
Business Success Indicators



  Performed statistical t-tests and chi-square analyses to
 identify contributing factors to business success;

  Level of statistical significance measured at the 95%
 confidence levels;

  Isolated and identified factors to contributing to




                                                                The Minority Business Atlas
 Employment Growth and Gross Sales Revenues Growth.




                                                           10
     Business Success Indicators:
     Gross Revenue Growth Factors

1.    Business Assistance (Succession Planning, Human Resource
      Development, Business/Strategic Planning, Technology/Information
      Systems, Marketing Strategies)

2.    Business Networks (Professional/Trade/Industry Associations,
      Business Networking Events, Seminars, Workshops)

3.    Technology (Up-to-date on the latest available computer
      technology, utilization of the Internet for business purposes)




                                                                            The Minority Business Atlas
4.    Market Scope (Exports goods and services, broadening of market
      for customers and clientele)




                                                                       11
  Revenue Growth as a Function of Business Networking

  Percent of businesses that have experienced positive growth in
  revenues


Do not participate                          36.7%

Participate in only one                         42.1%
Participate in two                                  47.5%




                                                                               The Minority Business Atlas
Participate in three                                 48.8%
Participate in all                                          54.4%



                          0%   17%       35%         52%            70%


                                                                          12
Business Success Indicators:
Business Networks




                                    The Minority Business Atlas
                               13

				
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