Economic Development, Policy, Uncategorized

The State of Minorities’ Access to Capital (2017): Call to Action!

You have heard how severally underrepresented minorities are in the pool of those that have received capital. But you have probably rarely ever seen the statistics behind that statement or the details of what that means.

Setting the Stage

Below is the text of a presentation I gave January of this year. This speech was given at Minority Access to Capital, Inc. (my non-profit’s) first meeting which was titled “The State of Minorities’ Access to Capital”. Some of the information below MAY shock you; unfortunately, others will not. But I believe that knowledge is power. So, it’s necessary to have a starting part of knowledge in order to be able to come up with deliverable metrics by which to measure minority progress in the area of capital access.

Minorities: How do we measure up?

The Minority Business Development Agency states in a 2012 survey that there are almost 8 million minority firms in the United States. They have combined gross receipts of $1.4 trillion, a 38% increase since 2007. However, only 11% of minority-owned firms have paid employees compared to 22% for non-minority firms. Other takeaways include:

  • According to an Ewing Marion Kauffman Foundation report, businesses started by people of color perform differently than white-owned businesses as white-owned businesses had double the number of sales. One of the reasons includes industry difference, with black-owned businesses being overrepresented in less successful industries. But entrepreneurs of color also started their business with less capital than their white counterparts. Additionally, this Kauffman brief revealed that education was an impediment as well. Asian and white Americans were more likely to have college degrees—50% and 29% respectively–and therefore more likely to have sales, than their black and Latino counterparts (18% and 13% respectively).
  • More than 2/3 of entrepreneurs use personal savings as a source of funding and more than 1 in 5 rely on family for funding.
  • Research also suggests that approximately 15% of the difference in startup rates among black and white Americans can be explained by differences in assets.
  • According to the Annual Survey of Entrepreneurs, about 82% of firms that started with at least $100,000 in capital were white-owned, 13% Asian-owned, 4% Hispanic-owned, and 1% are black-owned.

Women: How do we measure up?

As of 2016, it is estimated there are over 11.3 million women-owned businesses in the U.S. generating over $1.6 trillion in revenues. (The sources for the information below: From American Express OPEN: The State of Women-Owned Businesses Report (2016) and National Women’s Business Council Report (2012))

  • The growth in the number of women-owned firms surged in the aftermath of the recession. (Growth was 9.2% for non women-owned firms and 45.2% for women-owned firms)
  • Among women of color, Latinas lead the way in the growth of number of firms, Asian-American women lead in employment and revenue growth. African American women-owned firms constitute a 61% majority of African American owned firms.
  • In a 2012 report, the National Women’s Business Council found that on average, men start their businesses with nearly twice as much capital as women ($135,000 vs. $75,000). This disparity is slightly larger among firms with high-growth potential ($320,000 vs. $150,000), and much larger in the Top 25 firms ($1.3 million vs. $210,000).
  •  The same report found that high-growth potential firms started with about twice as much capital as other firms, and were more likely to rely on outside financing, both debt and equity. However, controlling for other variables including growth potential, men still used significantly higher levels of capital than women from 2005 to 2007.
  •  The biggest difference in amount of capital between men and women was with regard to outside equity, even controlling for other factors. Women received only 2% of total funding from outside equity, compared to 18% for men. This gap also occurred in both the high-growth potential firms and the Top 25 firms. As growth potential increases, so does the dollar amount of external equity used—this is true for both men and women, although the rates of increase differ.
  • Regarding demand for credit (i.e. outside debt), women were more likely to be discouraged from applying for loans due to fear of denial, particularly during the financial crisis of 2008–2010. This fear was somewhat justified: in 2008, women-owned firms were much more likely to have their loan applications denied than their men-owned counterparts.

What am I doing about this?

For anyone that knows me, you know I am a DOER instead of a complainer. So this is why Kendrick Advisory & Advocacy Group, LLC was started—to provide a unique experience for minorities to engage with one another and others in accessing capital. You can join the cause too! You can sign up for our enewsletter, follow us on social media, volunteer or DONATE to the cause. It takes all of us doing our part to make this happen.

Here are some IMMEDIATE opportunities to get involved below:

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My name is Dar’shun Kendrick and I am a business attorney and owner of Kendrick Law Practice, helping businesses raise capital the LEGAL way. I have 2 B.A.s from Oglethorpe University, a law degree from the University of Georgia and an M.B.A. from Kennesaw State University. Additionally, I have been elected to the Georgia House of Representatives (East DeKalb/South Gwinnett counties) since 2011 and I serve on the committees of Juvenile Justice, Interstate Cooperation, Judiciary Non-Civil and as the ranking Democrat on the Small Business and Job Creation Committee. I am also a board member of the Technology Association of Georgia’s corporate development board, a writer for Black Enterprise magazine and featured in the Huffington Post as one of 25 people in Atlanta to improve diversity in the ecosystem for African Americans in technology.

I am also the founder and Board Chair of a non-profit organization to EDUCATE and EMPOWER minorities called Minority Access to Capital, Inc. Furthermore, I am an Economic Justice Advocate and Owner of Kendrick Advisory and Advocacy Group L.L.C. providing consulting and advocacy services on policy and initiatives across the nation for those that want to reach minorities. More information can be found online at www.DarshunKendrick.com about my platform.

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Policy

HIV/AIDS in Georgia: Startling facts & call to action!

AIDs Day.jpg

*Friday at 10:30 am I will be moderating a panel on “HIV and Black Women” so please join me under the Gold Dome for an insightful discussion on this important issue.

By now you know that World Aids Day was Tuesday, December 1st. One of the sayings on the World Aids Day organization’s website is “Kisses and Hugs Don’t Spread HIV. Ignorance Does.” Isn’t that the truth? The statistics and survival rates of HIV/AIDS patients has evolved since the 80s but more must be done by way of education to young adults and the population in Georgia specifically.

So here are a few facts you may not have known about HIV and AIDS specifically as it relates to Georgia.

  • Infection rates are high in Georgia and metro Atlanta, with metro-Atlanta ranked 5th in the country for new cases of HIV/Aids
  • Of the 19 public health districts in Georgia, 9 had an HIV/AIDS case rate above the national average.
  • Men who have had sex with men still represent the largest group of people living with HIV in metro Atlanta at 55%.
  • 16% of HIV/AIDS cases result from injection drug use, and the proportion of AIDS in women has grown from 4% to 19% since 1987.
  • While African Americans make up only 29% of Georgia’s population, they represent 77% of all new HIV/AIDS cases and 63% of all existing HIV/AIDS cases in Atlanta were among this group.
  •  Only 43.6% of Georgia residents diagnosed with HIV in 2011 were retained in HIV care, giving it the seventh worst ranking for retention in HIV medical care when ranked among the 19 jurisdictions (18 states plus District of Columbia) that have data for comparison.
  • Among HIV-positive Georgia residents who received HIV care at least once in 2010, only 54.9% had achieved viral suppression. Also, Georgia had the second worst statistic for viral suppression when ranked among 19 jurisdictions that have data for comparison.
  • According to Grady Hospital, by the time patients are diagnosed in Atlanta, almost one third have advanced to clinical AIDS, which greatly decreases the chances of survival from the virus.
  • African American women account for 87% of all women with HIV/AIDS in Atlanta.
  • 50% of new HIV/AIDS infections in Georgia are occurring in young adults age 16-24 years old.
  • According to Grady Hospital, by the time patients are diagnosed in Atlanta, almost one third have advanced to clinical AIDS, which greatly decreases the chances of survival from the virus.
  • Only 43.6% of Georgia residents diagnosed with HIV in 2011 were retained in HIV care, giving it the seventh worst ranking for retention in HIV medical care when ranked among the 19 jurisdictions (18 states plus District of Columbia) that have data for comparison.
  • Among HIV-positive Georgia residents who received HIV care at least once in 2010, only 54.9% had achieved viral suppression. Also, Georgia had the second worst statistic for viral suppression when ranked among 19 jurisdictions that have data for comparison.
  • According to Emory University, black gay men in Atlanta have a 60% chance of contracting HIV before their 30th birthday (Emory University)

Source: Community Foundation for the Greater Atlanta and the Georgia Department of Public Health (last accessed December 8, 2015)

Learn these facts and more about how policy makers will address this issue starting tomorrow under the Gold Dome. Join me and others to tackle this tough issue.

Discussion Question: What can state policy makers do, individually or collectively, to raise more awareness about this epidemic in Georgia?

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2015 At Desk

I have been elected to the House of Representatives since 2011, representing over 54,000 Georgians in East DeKalb and South Gwinnett counties. I currently serve on the Juvenile Justice, Interstate Cooperation, Judiciary Non-Civil, and as the ranking Democrat on the Small Business Development and Job Creation committee. I am a private securities lawyer by profession and a native of Atlanta, GA. Please visit my website , YouTube, Facebook, Twitter and slideshare account for more information on Georgia government.

 

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