BY Scott Shane | November 15, 2012 |
Many African-Americans want to run their own businesses. Some surveys show that African-Americans are more interested in running their own businesses than whites. African-Americans are more likely to initiate the new-business creation process than whites although they are less likely to have an up-and-running business a few years later, according to the Panel Study of Entrepreneurial Dynamics, a representative survey of the adult-age population housed at the University of Michigan.
Despite entrepreneurial tendencies, African-American small-business ownership lags that of whites. White men run their own incorporated businesses at more than twice the rate of African-American men, and white women do so at more than three times the rate of their African-American counterparts, analysis by Bureau of Labor Statistics economist Steve Hipple reveals.
Policy makers have historically relied on targeted minority-lending programs when seeking ways to close this gap, but these efforts have met with limited success. Now would-be entrepreneurs can take advantage of the new equity crowdfunding legislation to try a different and potentially better solution.
Let’s take a closer look at the problem. Researchers, policy makers and social advocates point to differences in social networks, role models, education, and occupational choice as reasons that African-Americans are less likely to run their own businesses than whites.
While all of these factors no doubt matter, research by University of California at Santa Cruz economist Rob Fairlie shows that the most important factor is a difference in wealth. Because most entrepreneurs finance their businesses largely from their own savings and personal borrowing, net worth has a huge impact on whether would-be entrepreneurs can turn their new-business dreams into reality.
The typical African-American would-be entrepreneur is much poorer than the typical white one. Federal Reserve statistics show that the median African-American household had a net worth of only $15,500 in 2010, as compared to $130,600 for the typical white non-Hispanic household. Because the capital requirements to start a business are the same regardless of the would-be entrepreneur’s race, that nearly 13-fold difference in net worth means that a much smaller fraction of interested African-Americans have the money to start companies than interested whites.
Loan programs targeted at minorities haven’t eliminated this entrepreneurship gap between the races. Only a small fraction of people starting businesses get loans. Consequently, loan programs cannot address the shortage of capital facing the vast majority of American-American would-be entrepreneurs, who, like most would-be entrepreneurs, don’t have credit-worthy businesses and need to self-finance.
What’s more, to get a loan, you have to have adequate collateral. Lenders can’t allow African-American entrepreneurs to put up only one-twelfth the collateral of white entrepreneurs. It follows then, that even in the presence of targeted loan programs, many African-American lack the net worth necessary to borrow.
Finally, few start-ups can handle debt. To meet scheduled interest payments, a business needs adequate and consistent cash flow, which only a fraction of businesses have in their early years. Accordingly, even when debt is available to minority entrepreneurs through targeted programs, few African-American entrepreneurs have the types of business to take advantage of it.
The new Jumpstart Our Business Startups (JOBS) Act offers an additional, and potentially better, solution to the net-worth gap that holds back African-American entrepreneurship. The law, which was enacted in April, permits equity crowdfunding. If churches, community groups and other organizations interested in enhancing entrepreneurship in the African-American community set up equity crowd-funding efforts, they could aggregate small amounts of money from many individuals to provide capital to would-be entrepreneurs blocked from starting companies by their own limited net worth.
la opinión 31.01.2014 | Francisco Domingo Gancedo
Un malagueño residente en Berlín hace patria de la lengua andaluza recogiendo expresiones populares a través de las redes sociales y pretende editar el libro ‘Hablo andalú’
Francisco Domingo Gancedo creó la página de Facebook “Hablo Andalú” a finales del pasado septiembre con el objetivo de explicar, a través de definiciones, el significado de las expresiones andaluzas más populares. En poco tiempo, la página ha conseguido más de 40.000 fans que envían diariamente sus palabras y frases para que sean compartidas por la red.
“Estando tan lejos se echan de menos muchas cosas, por eso comencé el proyecto, para estar en contacto con andaluces o amantes de Andalucía que tuvieran un mismo objetivo: difundir nuestra forma de hablar”, afirma.
Visto el éxito que tenía la página, pensó que sería buena idea crear un libro que reuniera las expresiones más populares y que, además, estuvieran representadas a través de ilustraciones. Por lo tanto, el libro recogerá 80 escenas dibujadas que simbolizarán gráficamente las expresiones más exitosas de la página. El encargado de dibujarlas será Abel Fernández, un joven ilustrador almeriense con muchísimo talento.
Para el malagueño es imposible asumir los costes que supone la creación del libro, por lo que empezó a pensar en una forma de financiación viable.
Así, Francisco ha creado la campaña “Hablo Andalú: ¡El libro!”. Con ella quiere recaudar 10.000 euros en 40 días. Cualquier persona puede colaborar, la aportación mínima es de 5 euros y la máxima de 100 euros. Todas ellas recibirán su correspondiente recompensa.
“El micro-mecenazgo es un modelo de financiación perfecto para proyectos culturales como este: la gente apoya la iniciativa y, a cambio, recibe una recompensa. En este caso, el libro es una de ellas pero hay muchas más”, nos explica el joven malagueño.
Además, las empresas andaluzas también pueden apoyar el proyecto a través del patrocinio. De hecho, ya hay algunas que han hecho su aportación, como por ejemplo el “Camping Valle Niza” situado en Benajarafe.
Everyone likes to point to the New York Times as the model for a news outlet with a successful paywall or online-subscription model, but as the authors of Columbia University’s report on “Post-industrial Journalism” noted last year, there is only one New York Times — just as there is only one Wall Street Journal. The only real lesson that these publishers have to teach other news outlets when it comes to paywalls is: “Too bad you aren’t the New York Times or the Wall Street Journal.”
Among the smaller players, however, some interesting lessons are emerging about what makes a subscription model work. For me at least, one of the most compelling is that your ability to build and maintain a strong connection to your community is crucial — and the example of Holland’s massively successful crowdfunded news site De Correspondent is a case in point.
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Crowdfunding platform joins forces with Hispanic Chamber of E-Commerce to accelerate access to capital within the Latino community.
San Diego, CA (PRWEB) January 20, 2014
Crowdismo, an online crowd funding platform, today announced the launch of a strategic partnership with the Hispanic Chamber of E-Commerce to further its mission of fueling innovation, creativity, social impact and entrepreneurship within the Latino community.
“This new partnership with the Hispanic Chamber of E-Commerce extends our reach as a viable solution in capital formation via the collaborative web,” said Jose Huitron, Co-Founder of Crowdismo. “We are excited to see this partnership produce tangible results in breaking the access to capital barrier among the fastest growing entrepreneurial segment in the country.”
Crowdismo is committed to providing a solution for accelerating ideas throughout the U.S. Hispanic market by offering a market validation vehicle and resource for capital fuel. RecCheck, a mobile application being developed by Draper University graduate Kevin Hernandez, allows users to easily set up pick up games with their friends and other players around them and is the first campaign to be supported by the Hispanic Chamber of E-Commerce.
“Thanks to crowdfunding, entrepreneurs and small businesses now have the opportunity to raise money via disruptive platforms like Crowdismo. The Hispanic Chamber of E-Commerce is delighted to join forces with Crowdismo and continue to tap into the use of the Internet as a legitimate business tool,” said Tayde Aburto, Founder of the Hispanic Chamber of E-Commerce. “We are excited to support projects like Kevin’s and future campaigns that highlight the growing creativity of our community.”
About Hispanic Chamber of E-Commerce
The Hispanic Chamber of E-Commerce is a business to business membership-based business association focused on providing tools and solutions to members to increase their presence online. The Hispanic Chamber of E-Commerce offers Internet marketing services that help you to promote your products/services; build business relationships and collaborate with potential clients via an exclusive social network. For more info, visit http://www.hiseb.com.
Crowdismo is an online crowdfunding platform fueling innovation, creativity, education, social impact, and entrepreneurship within the fast-growing Latino market. For more information, visit http://www.crowdismo.com and connect with us at https://www.facebook.com/Crowdismo.
Posted date: May 07, 2013
Crowdfunding (alternately crowd funding, crowd financing, equity crowdfunding, or hyper funding) describes the collective approach to raising money. Typically using the Internet, an entrepreneur or group shares their business idea to a “crowd” and provides the opportunity for individuals to contribute money to advance the business idea and receive some type of return as described by the posting entrepreneur. By raising small amounts of money from (hopefully) lots of individuals the financial goals are achieved and the project is successfully “crowdfunded“.
“Access to capital is a bigger problem in the African-American community than in non-minority communities,” said Nathan Bennett-Fleming, founder of Blackstartup.com in an interview with VentureBeat. “Crowdfunding is a powerful solution to address its unique set of challenges. I want to promote the idea of community reinvestment and provide people with a dedicated way to not only achieve innovation within the space, but also address social systemic problems.”
According to the Blackstartup.com website, “Our platform is a new tool to generate financial resources to fund ideas and to address systemic social problems facing African Americans on the local, national, and international level.” Projects can come from any field .. as long as a positive link to our community is created”.
“Cooperative economics” or Ujamaa is one of the seven principles celebrated during Kwanzaa. Bennett-Fleming is essentially bringing a practical and innovative means to the table for Blacks to apply the principle. With over $1.2 trillion in consumer spending, re-directing a fraction of these dollars to funding and growing business ventures is a worthy endeavor for the African-American community.
Says Bennett-Fleming, “Our community is under-valued and highly profitable.” “There is already a strong affinity within the community on the ground and the ability to market directly to a community that is under-marketed creates a significant value proposition. There is already a trend towards more focused, niche crowdfunding platforms. It is a vehicle to better use the tremendous consumer and wealth power of a specific community to take on its challenges.”