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2021 | OriginalPaper | Chapter

1. Minority Business Now

Defining Minority Business

Author : William Michael Cunningham

Published in: Thriving As a Minority-Owned Business in Corporate America

Publisher: Apress

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Abstract

On January 12, 1959, Berry Gordy started Motown Records. The company grew into a global brand and one of the most influential companies in the United States. Mr. Gordy is an African American, born and raised in Detroit, so his firm was considered a “minority business” at its start. It did not remain so. As the firm grew and prospered, the value was recognized. The firm was purchased by MCA Records in 1988. This is widely considered a successful path for a (formerly) minority-owned firm, and if this is your goal, the information contained in this book may very well help you reach it.

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next chapter The State of Minority Business

The Reserve Bank of New Zealand is now “required to consider the impact on housing when making monetary and financial policy decisions: changes have been made to the Central Bank of New Zealand’s Monetary Policy Committee’s remit requiring it to take into account government policy relating to more sustainable house prices, while working towards its objectives.” We think similar policies will be implemented in the United States. See www.beehive.govt.nz/release/reserve-bank-take-account-housing-decision-making

At the Federal Reserve Bank of Kansas City in 1994, I suggested the Federal Reserve Board’s Federal Open Market Committee (FOMC) purchase mortgage-backed securities (MBS) originated by Black banks as part of open market operations. The Fed, then under Alan Greenspan, declined, saying that only Treasury securities were appropriate collateral. Since the financial crisis, the Fed has purchased trillions in securities, helping nonminority banks, broker-dealers, insurance companies, auto companies, and investment banks. Not only did few Black banks receive any assistance, but the ones that did were the wrong banks.

We still believe one possible solution to the crisis is to have the Federal Open Market Committee (FOMC) create a liquidity pool totaling at least $50 billion by conducting repo and reverse repo transactions, purchasing Treasury, MBS securities (and/or SBA PPP loans) from Black banks with a record of actually making loans to the Black community.

We remain confident that, with the increased level of private sector interest as reflected earlier, this is a viable solution.

January 20, 2021. Executive Order On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government. Online at

www.whitehouse.gov/briefing-room/presidential-actions/2021/01/20/executive-order-advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government/

According to the US Census Bureau, “It is important to note that these data comparisons between the 2020 Census and 2010 Census race data should be made with caution, taking into account the improvements we have made to the Hispanic origin and race questions and the ways we code what people tell us.” From

www.census.gov/library/stories/2021/08/improved-race-ethnicity-measures-reveal-united-states-population-much-more-multiracial.html

SBA FY 2021 Congressional Justification and FY 2019 Annual Performance Report. Total Number of Minority Firms from US Senate Small Business Committee. www.sbc.senate.gov/public/index.cfm/minorityentrepreneurs

Title: Minority Business Now
Author: William Michael Cunningham
Publisher: Apress
Book: Thriving As a Minority-Owned Business in Corporate America
Print ISBN: 978-1-4842-7239-8

Electronic ISBN: 978-1-4842-7240-4

Copyright Year: 2021
DOI: https://doi.org/10.1007/978-1-4842-7240-4_1