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New Report Shows Black Entrepreneurial Blocked By Three Main Barriers

New Report Shows Black Entrepreneurial Blocked By Three Main Barriers

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rfocus.orgThe Association for Enterprise Opportunity (AEO), a nonprofit organization dedicated to empowering microbusinesses, today announced the release of its new report "The Tapestry of Black Business Ownership in America: Untapped Opportunities for Success." Funded by the W.K. Kellogg Foundation, the report set out to assess the economic strength and potential of Black-owned businesses, identify challenges and opportunities across a mosaic of segments, and launch a national discussion on how investors and policymakers can increase the effectiveness of programs designed to support Black entrepreneurship, keeping in mind that rich diversity.

"There is a myth that Black people aren't motivated to start their own firms, and are pushed into business ownership mostly due to unemployment," said AEO President and CEO Connie Evans. "Our findings show that in actuality, Black Americans have high entrepreneurial drive and the same motivations as other entrepreneurs, yet face three persistent barriers that operating together impede the establishment and growth of Black-owned firms. Understanding and addressing the unique interplay of these obstacles are crucial steps to unleashing the potential economic power of Black business ownership in America."

The three barriers described in the report are a Wealth Gap, fewer assets and less disposable income to invest in business; a Credit Gap, decreased access to formal credit and high denial rates; and a Trust Gap, institutional bias that Blacks have experienced, inhibiting them from actions such as applying to financial institutions for more capital, joining networks, creating valuable partnerships, and more. This environment of scarcity translates into fewer establishments reaching maturity, and for those that do survive, limited potential to grow and hire. In fact, most businesses say the current financing environment hampers their ability to hire new employees.

The report's authors calculated that if Black-owned firms were able to reach employment parity with all privately-held U.S. firms, 600,000 new jobs could be created and $55 billion would be added to the U.S. economy. Since many Black-owned businesses are small businesses that serve and hire from their communities, reaching employment parity could also have the effect of reducing unemployment in the Black community down to 5 percent. In addition, a larger portion of money spent at Main Street businesses stays circulating in the local region versus money spent at big box stores, creating economic empowerment in areas that likely need it the most.

"We know that when parents are economically stable, their children are best positioned for success in school and life," said Carla Thompson Payton, vice president for program strategy at the W.K. Kellogg Foundation. "This study will help us better understand what's working and what's not working for Black business owners so we can create pathways to entrepreneurship to create stability for their families and strengthen their communities."

The report also releases a proprietary analysis of longitudinal data that reveals faster wealth creation among people who become self-employed, proof of the viability of this pathway in achieving economic livelihood. "The gap in average wealth between Black and White adults decreases from a multiplier of 13 all the way down to 3, when you compare the wealth of business owners by race," said Evans. "Business ownership is the great equalizer in American wealth disparity. Our report illustrates the rich diversity of Black-owned businesses that have often been characterized with a one size fits all model, and begins to reframe the conversation on how to devise creative solutions that propel their success."

"The Tapestry of Black Business Ownership in America: Untapped Opportunities for Success" contains innovative data analyses from Robert Fairlie, Professor of Economics at the University of California, Santa Cruz; William J. Darity, Jr., Professor of Public Policy at Duke University; and Khai Zaw, a statistical research associate at Duke University. It also includes information curated from organizations such as the Census Bureau and Bureau of Labor Statistics, input from an expert panel of advisors, and surveys of business owners across the country. The full report is available on the AEO Web site at www.aeoworks.org.

African-American Millennials Use of Digital Platforms Raising Influence and Visibility According to Nielsen Study

African-American Millennials Use of Digital Platforms Raising Influence and Visibility According to Nielsen Study

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Radio Facts: [caption id="attachment_175682" align="alignleft" width="300"]Nielsen released its sixth annual report on Black consumers. The 2016 report focuses on the nation's 11.5 million African-American Millennials--their shopping and viewing habits, social media and digital trends, economic power and cultural influence. For more details and insights, download the 2016 report, Nielsen released its sixth annual report on Black consumers. The 2016 report focuses on the nation's 11.5 million African-American Millennials--their shopping and viewing habits, social media and digital trends, economic power and cultural influence. For more details and insights, download the 2016 report, "Young, Connected and Black: African-American Millennials Are Driving Social Change and Leading Digital Advancement" at www.nielsen.com/africanamericans. (PRNewsFoto/Nielsen)[/caption] Black Millennials are 11.5 million strong and leading a viral vanguard that is driving African-Americans' innovative use of mobile technology and closing the digital divide. Nielsen highlights this group in a new report called "Young, Connected and Black: African-American Millennials Are Driving Social Change and Leading Digital Advancement." With $162 billion in buying power and undisputed cultural influence, Black Millennials are using their power to successfully raise awareness of issues facing the Black community and influence decisions shaping our world. Media and brands are taking notice, creating campaigns and content that target this increasingly influential demographic with greater ad spends and more diverse programming. The sixth in Nielsen's Diverse Intelligence Series focused on Black consumers, "Young, Connected and Black" paints a picture of a Black diaspora that is tech-savvy; socially and civically engaged; growing in population (46.3 million or 14% of the U.S. population) and buying power (nearly $1.2 trillion in 2015); and optimistic about the future. "We have entered a new era whereby technology has become a great equalizer," said Cheryl Grace (née Pearson-McNeil), Senior Vice President, U.S. Strategic Community Alliances and Consumer Engagement. "Black Millennials are leading the way in their use of technology to impact change and get their voices heard." The 83.1 million U.S. Millennials are considered a key voting bloc this November. Black Millennials represent 14% of all Millennials and 25% of the total Black population. The top five markets for Black Millennials (by population) are New York, Atlanta, Chicago, DC and South Florida (Miami/Ft. Lauderdale). Weeks before the 2016 presidential race, the power of the Black electorate is a particular point of interest given the records set in 2012 when, bolstered by its Millennial population, African-Americans had the highest rate of voter registration and voter turnout of any demographic group in the U.S. "African-American Millennials are blazing trails to the center of the debate over matters that are paramount to their future success and safety—all as their influence over mainstream consumers grows," said Deborah Gray-Young, Managing Partner, D. Gray-Young Inc., a multicultural marketing consulting firm and Nielsen External Advisory Council member. "Nielsen continues to be the definitive source of independent third-party insights on consumers of color. This annual report is an essential tool for organizations looking to develop a deeper contextual understanding of the influence and economic power of Black consumers." The 2016 report delves into the spending and viewing habits of African-Americans overall and credits a voracious appetite for television content with the dramatic increase in diverse television programming. Between 2011 and 2015, broadcast network TV ad spend focused on Black audiences (defined as ad dollars placed on programming with greater than 50% Black viewers) increased by 255%. The Top 10 TV shows among Black Millennials 18–24 and Blacks 35+ all had predominately Black casts or lead actors who are key to the storyline (e.g. "Empire," "How to Get Away With Murder," and "The Walking Dead"). Some other key highlights from the report: African-Americans are Closing the Digital Divide African-American Millennials are 25% more likely than all Millennials to say they are among the first of their friends/colleagues to try new technology products. As smartphone owners, African-Americans (91%) are second only to Asian-Americans (94%). 91% of African-Americans say they access the Internet on a mobile device, an increase from 86% in 2015, which further cements their status as digital leaders. A Viral Vanguard: Social media engagement 55% of Black Millennials report spending at least one hour a day on social networking sites, which is 6% higher than all Millennials, while 29% say they spend at least three hours a day, 9% higher than all Millennials. 28% of African-Americans age 35+ say they use social networking sites for at least one hour per day, which is 2% higher than the total population in this age group. Ten percent of African-Americans age 35+ say they use social networking sites for at least three hours per day, which is 2% higher than the total population age 35+). Voracious Content Consumers African-American Millennials watch nearly 33 hours of live and DVR time-shifted television per week, about 12 and half more hours per week than total Millennials. African-American Millennials spend about two hours more per week (eight hours and 29 minutes versus six hours and 28 minutes) using the internet on PCs, and about an hour more weekly (three hours and 47 minutes versus two hours and 33 minutes) watching video on PCs than total Millennials. Education advancements of Black Millennials 89% of African Americans ages 25–34 completed high school, compared to 77% of Black Americans ages 55 and older. 21% of African Americans ages 25–34 have an associate's college degree or higher, versus 17% of those who are 55 and older. African-American incomes and spending power Overall Black spending power is projected to reach $1.4 trillion by 2020. From 2004 – 20014 the number of Black households with annual incomes of $50,000 - $75,000 increased 18% compared to 2% for the total U.S. For Black households earning $100,000+ annually, the increase between 2004 and 2014 was 95%, compared with 66% for the total population. The share of Black households with an income less than $25,000 declined from 43% in 2004 to 37% of the total African-American population in 2014.
OneUnited Bank Partners With #BlackMoneyMatters L.A.

OneUnited Bank Partners With #BlackMoneyMatters L.A.

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Radio Facts: oneunited bankOneUnited Bank, the nation's largest Black-owned bank, first black internet bank, and FDIC insured, announces its partnership with #BlackMoneyMattersLA to empower the Black community in Los Angeles. The message of #BlackMoneyMattersLA is "one of non-violence, non-vitriol, and responsible action, to mobilize as a people and deposit money into Black-owned banks all across the nation, starting with OneUnited Bank". There has been a community awakening following recent tragic events, including a desire by many to do something positive. Many leaders involved in the movement have begun to advocate opening a bank account in a Black-owned bank to show solidarity and empower the community by recycling dollars within the Black community. OneUnited Bank has generated $3 million in deposits from across the country in response to this call to action. Celebrities such as Beyonce, Queen Latifah, Solange, Killer Mike, Jessie Williams, Alicia Keys and more have joined the conversation urging Black Americans to move their money to Black-owned banks. On Saturday July 23rd, 2016 from 2pm-5pm, OneUnited Bank will partner with #BlackMoneyMattersLA, and other community organizations, to host a first-time account opening event at the OneUnited Bank's Crenshaw branch (3683 Crenshaw Blvd., Los Angeles, CA 90016). With over 1,000 people expected to attend, the event is planned as a positive and exciting opportunity for Los Angeles' urban community to participate in the nationwide push to #BankBlack. The event will feature food trucks, free giveaways, a personal meet-and-greet with the owners of OneUnited Bank, Teri Williams and Kevin Cohee, and engaging fellowship around the #blackmoneymatters movement. The ask is just $100 deposited into OneUnited Bank to become a part of the #BlackMoneyMatters movement and an economic shift for Black America. The event is OPEN TO THE PUBLIC! "It is critical for the Black community to utilize our $1.2 trillion in annual spending power to create jobs and build wealth in our community," states Teri Williams, President & COO of OneUnited Bank. "Put simply, if 1 million people opened a $100 savings account in a Black-owned bank, we would move $100 million!" OneUnited Bank stands in full support of the #BlackLivesMatter and #BlackMoneyMatters movements with the goal to take control of our humanity and regain economic power in our communities. For 20 years, OneUnited Bank the nation's largest Black-owned bank, with assets of $620 million, has been steeped in the financial literacy movement and touted Black economic empowerment. Sadly, Black dollars circulate in the Black community for only 6 hours as compared to 28 days in Asian communities. As the leader in the Black banking industry, OneUnited takes the challenge to strengthen the Black community's financial future very seriously. #BankingBlack results in better circulation of Black dollars with Black businesses, creates more jobs for the Black community, provides mortgage and small business loans, educates the urban community on financial literacy, and the power of the Black dollar.

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