In this week’s edition of the CBC Message to America, Congressman Donald Payne, Jr. (NJ-10) discusses how African-American owned small business are vital to the success of our economy and the nation.
Rep. Payne began his address by reminding Americans about the impact small businesses have on the U.S. economy.
“Currently, small business create two out of the net three jobs in this recovering economy,” he said.
According the Payne, small business created nearly two million jobs last year.
“It is fair to say that small businesses are truly the backbone of our economy and entrepreneurship is still the primary pathway to economic prosperity,” he added. “Ensuring that these businesses have access to the necessary amounts of capital allows them to create jobs, spur innovation and grow the U.S. economy.”
Despite the positive impact the growth of small business has on America, many entrepreneurs face a struggle trying to obtain the “necessary capital they need to grow and succeed.”
This problem is compounded in the African-American community.
“Research shows that African-Americans start businesses with less capital than do White Americans and that these gaps persist over time. Businesses with less capital are less likely to succeed,” Payne said. “The lack of access to capital is a huge barrier for African-Americans looking to start or expand their own businesses.”
As a result of this, African-American small business “tend to be smaller in size and scale and they often don’t have the capacity to succeed.”
“It is essential that African-Americans have the resources and the capital they need for their businesses to be successful” because their success drives U.S. job creation, economic growth and global competitiveness.
That is why the congressman and members of the Congressional Black Caucus are calling on the Consumer Financial Protection Bureau to “require financial institutions to collect and report data on lending to small women and minority owned businesses.”
“Transparency in small business lending data is the key to understanding the credit needs of minority owned small businesses, at the same time reducing wealth inequality must be one of our top priorities.”
The challenges of acquisition of capital high rates of poverty, long-term unemployment, lower incomes and slower wealth accumulation must be addressed to “better enable our communities to overcome the obstacles they face in financing their businesses”
“The success of African-American owned small businesses is linked to the success of our economy and our nation,” he said.
Hear what else Rep. Payne, Jr. had to say about African-American small businesses in the video above, and find previous CBC Messages To America on YouTube.
For more information about the Congressional Black Caucus, visit cbc-butterfield.house.gov.