A majority of new businesses in this country are started by women, Gen Xers (b. 1961-1981) and professionals of color. Why? Because these folks feel cut-off from traditional power structures in the United States, so they chart their own course. Good for them. I mentioned this yesterday and got into it with a white guy who said that it’s easier for women and minorities to get access to small business funds; it’s impossible for white men.
I don’t know what the white man experience is, but it’s no bed of roses to get access to capital if you’re a woman-owned business, either.
Yes, there are dozens of programs, but applying is not for the environmentally sensitive: the paper work alone is enough to choke a donkey (and donkeys eat NAILS!). There are three ironies at play here:
1. Small businesses created 20 M jobs in the 1990’s while large businesses laid off 10 M. In recession after recession, small business growth is the only way out. In the dozens of communities I visit each quarter, I hear all about the bribes paid to attract or keep their large employers but when I ask, “What’s your small business incubation plan?” the typical response is, “We need to do a better job with that.” Some of these same organizations outsource all of their creative/advertising/marketing to NYC, ignoring the local, turbo-innovative cottage industries in their own backyard. Argh.
2. Although women, Gen Xers and professionals of color start more businesses per capita, they are the least likely to get funding from traditional financial institutions. Our capital markets are starving some of the most innovative, energetic sources of new jobs and new wealth creation.
3. President Bush allowed funding for the popular SBA 7(a) program to dry up FOR MONTHS. The Wall Street Journal gave four sentences to the news that Bush finally reinstated funding yesterday. Our country is predisposed to show the most love - and money - to big companies. This is poor economic policy. Small businesses are the little engines that could - and do. If our economy is going to continue to kick ass on a global scale, we better up the Entrepreneurial ante.
And fast.
Whaddya say? Note: I am not a pundit, but I play one on TV.
