Mainstreaming Minority Business: Financing Domestic Emerging Markets
Feb 01, 1999
Michael Harrington and Glenn Yago

Economic growth and equity are linked. Despite the U.S. economic recovery since the 1990-91 recession, aggregate growth has not mitigated income and wealth polarization patterns. Inadequate growth shared unequally will not sustain long-term competitiveness.

Minority communities represent the most potent potential market force in the American economy. Minority groups are experiencing higher rates of population growth than whites. By 2050, minorities are projected to comprise almost 50 percent of the U.S. population.

Minority businesses are growing even faster than the population in terms of both numbers of new firms and revenues. This is an "emerging" and largely untapped domestic market. However, this rapid growth is a catch-up phenomenon for a historically underserved business market and is being constrained by inadequate capital access.

Capital access is a prerequisite for increased participation in the mainstream economy.