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Blog Category: Minority Business Development Agency

MBDA National Director Highlights Opportunities for Partnerships as a Global Growth Strategy at London Symposium

David Hinson, Director of MBDA

The Commerce Department’s Minority Business Development Agency (MBDA) National Director David A. Hinson traveled to London this week to discuss mergers and acquisitions as a global growth strategy for middle-market minority businesses. At the Third Global Merger & Acquisition Symposium: The New Economics for the Private Middle Market, Hinson explained that minority-owned businesses offer international investors above average return prospects and a powerful market entry vehicle into the United States and other countries.

“Within every market there are hidden and often undervalued opportunities that support both market entry and the potential for outsized profit,” Hinson said. “One of these hidden opportunities within the United States is called the minority business community.”

The U.S. minority business community represents $1 trillion of U.S. economic output, and if measured against the size of countries around the world, it would be the 17th richest nation. The minority business sector has also shown the greatest growth dynamics in the U.S. economy in terms of gross receipts, growing at 56 percent based on the latest Census Bureau data.

Now totaling 5.8 million, minority-owned companies in the United States have over $2.46 trillion in total annual purchasing power.

“Partnering with a U.S. minority-owned firm and leveraging not just the firm’s U.S. market presence but the “Made in America” brand can be a winning proposition for a new entrant to a foreign market.”

United States Department of Commerce Plan for Orderly Shutdown Due to Lapse of Congressional Appropriations

This blog post is about an older plan. The United States Department of Commerce Plan for Orderly Shutdown Due to Lapse of Congressional Appropriations at the end of FY 2013 is available here.

The current FY 2011 Continuing Resolution may expire without new budget authority. While it is not anticipated that there will be a lapse in appropriations, the Department must be prepared for a potential lapse in funding that would necessitate a significant reduction in operations.

Prior to a potential lapse in funding, the Office of Management and Budget (OMB) requires the Department to submit a draft plan for agency operations in the absence of appropriations (a "shutdown plan"). This plan will likely be modified with additional guidance from the Office of Personnel Management and OMB, as the situation develops, and may be changed by the Department, as circumstances warrant.

This plan complies with the guidance provided by the Office of Management and Budget, the Department of Justice and the Department of Commerce.

Files

Economic Development Organizations from Across the Nation Work to Create New Jobs at Hannover Messe 2011

U.S. Ambassador to Germany Philip Murphy and Deputy Assistant Secretary of Commerce for Economic Development Brian McGowan open the Invest in America Pavilion at Hannover Messe 2011.

Guest Blog Post by Brian McGowan, Deputy Assistant Secretary of Commerce for Economic Development.

21 Economic Development Organization’s (EDOs) from across the nation are working today to create new jobs in their regions by participating in the U.S. Trade & Investment Program to HANNOVER MESSE 2011, the world's largest industrial technology showcase. The event runs from April 4-8, 2011 in Hannover, Germany.

The purpose of the program is to promote the Obama administration's National Export Initiative (NEI) as well as to attract Foreign Direct Investment (FDI) in the U.S. By leading regional business clusters abroad, the Department of Commerce is aiding communities in promoting their regions as ideal locations to do business.

The program is the product of a unique partnership formed by the Commerce Department’s Economic Development Administration (EDA) and the International Trade Administration’s U.S. Commercial Service (USCS), and Invest In America (IIA) programs. 

Spotlight on Commerce: David Hinson, National Director of MBDA

David Hinson, Director of MBDA

Ed. Note: This post is part of the Spotlight on Commerce series, which highlights members of the Department of Commerce who are contributing to the President's vision of winning the future through their work.

David Hinson is the National Director of the Minority Business Development Agency.

As I travel around the country, I am in awe of the tenacity and the indomitable spirit of minority business owners and their unwillingness to quit in the face of overwhelming odds. That’s the spirit that makes America great.

As the National Director of the Minority Business Development Agency (MBDA), I am proud to be a part of this Administration and a part of an Agency where our work helps to expand the U.S. economy and create new jobs through the historically underutilized minority business community.

I have the privilege of serving on the senior staff of the Secretary of Commerce and serving as Bureau Chief of MBDA, as well as engaging with various stakeholders, members of Congress, minority-owned and operated businesses, and nonprofit organizations that support minority business development across the nation.

MBDA is a national organization with more than 46 business centers in five regions, which generates nearly $4 billion in contracts and capital for minority-owned businesses. We also create thousands of jobs for all Americans and help save thousands of existing jobs.

Minority-owned firms are an engine of job creation for the U.S. economy, outpacing growth within the general business community for most of the last decade. Collectively, minority-owned businesses generate $1 trillion in economic output and create nearly 6 million jobs. They also possess almost $2.5 trillion in buying power.

My first introduction to business was as a child growing up in St. Louis, MO. I learned lessons about entrepreneurship from my next door neighbor who ran a small cookie distribution company from his home.  He taught me about the importance of inventory and business efficiencies. While I was a dreamer, who often thought about what people were doing in other countries, my parents’ neighbors and teachers taught me that simply dreaming wasn’t enough. Making dreams come to fruition requires true grit and determination.

Build It Here: American Manufacturing

During the course of our economic recovery since the end of the Great Recession in 2009, domestic manufacturing has been a star. In the past, manufacturing output and job growth have typically lagged behind the economy’s overall recovery in the United States. But this time, manufacturing has led the way.

Manufacturing activity expanded in January at its fastest pace in seven years, recording its 18th month of growth, according to the Institute for Supply Management’s January manufacturing index. As Commerce Department Chief Economist Mark Doms noted recently in his new blog, manufacturing jobs are associated with relatively high wages, hence the commonly used phrase “good jobs” in reference to those created in the industry.

In the video below, U.S. companies from a wide range of industries from health care to plastics talk about why they manufacture their goods in America. The United States offers a highly educated workforce, strong intellectual property protections, and a business climate that supports and encourages innovation. For ET Water, Labcon, Supracor and others, manufacturing in America just makes smart business sense.

See video

Black-Owned Businesses Outpace Growth of Non-Minority-Owned Businesses

Today the Commerce Department’s Minority Business Development Agency (MBDA) and U.S. Census Bureau released new data from the U.S. Census Bureau’s 2007 Survey of Business Owners showing that the number of African American-owned firms in the United States increased by 60.5 percent between 2002 and 2007 to 1.9 million firms. African American-owned businesses also drove job creation over the five-year period, with employment growing 22 percent, exceeding that of non-minority-owned businesses.

“We are encouraged by the overall growth of the minority business community, including African American-owned businesses, but we still have a lot of work to do,” said MBDA National Director David A. Hinson. “Creating new businesses and new jobs on a path to entrepreneurial parity in size, scope and capacity is our primary goal.”

While minority-owned firms are experiencing substantial growth, African American-owned businesses still only represent 7 percent of all classifiable firms but 12 percent of the adult population. MBDA works to promote the growth and global competitiveness of minority businesses, so they are better equipped to create jobs, boost their local economies and compete in the global marketplace. 

Find out more about African American-owned businesses.

Secretary Locke Announces Members of New National Advisory Council on Minority Business Enterprises

Today, Commerce Secretary Gary Locke announced the appointment of 25 members to the new National Advisory Council for Minority Business Enterprises.  The advisory council will be led by the Commerce Department’s Minority Business Development Agency (MBDA) and provide advice and recommendations to the department and the administration on a broad range of policy issues affecting the minority business community. 

The new council is the first to focus on promoting minority businesses since around 1969, when President Nixon established MBDA – formerly the Office of Minority Business Enterprise – and an advisory council to oversee and advise the new office.

The minority business community is an engine of economic growth and job creation. Today, there are approximately 5.8 million minority-owned firms generating $1 trillion annually and employing nearly 6 million workers. Yet, there continues to be challenges within the minority business community.  Of those 5.8 million firms, only 800,000 have more than one employee and the gap in average annual revenue between minority-owned and non-minority-owned firms is significant.

The Obama Administration is committed to narrowing that gap and finding ways to support and promote minority businesses. 

“The nation’s 5.8 million minority-owned firms have significant untapped potential that can benefit the United States,” said David A. Hinson, MBDA’s national director. “The advisory council has an opportunity to shape future policies and programs that will set the foundation for the growth of $100 million companies across all industries that are owned and operated by U.S. minorities.”

The first meeting of the new National Advisory Council for Minority Business Enterprises is planned for early 2011.

 

Hispanic-Owned Businesses Grow by More than Double the National Rate

The Commerce Department’s Minority Business Development Agency and U.S. Census Bureau today announced that the number of Hispanic-owned firms increased by nearly 44 percent between 2002 and 2007 from 1.6 million businesses to 2.3 million, according to new data released today from the U.S. Census Bureau’s 2007 Survey of Business Owners. Employment at Hispanic-owned firms also grew by 26 percent from 1.5 million to 1.9 million workers, a growth rate significantly higher than that of non-minority-owned firms.

“It is encouraging that the Hispanic business community is growing, but we need to create the right conditions for Hispanic-owned businesses to grow more quickly,” MBDA’s National Director David A. Hinson said. “We encourage Hispanic-owned businesses to explore new markets and take advantage of their existing cultural, family or business ties in foreign countries to export as a means to grow and compete in today’s global economy.”

Hispanic-owned businesses generated $345.2 billion in sales in 2007, up 55.5 percent compared with 2002. And of all Hispanic-owned firms with employees, approximately 44,000 have revenues of more than $1 million, representing an increase of more than 51 percent over 2002.

While these are welcome improvements for Hispanic-owned businesses and the minority business community, there is still significant room for growth. Learn how the Minority Business Development Agency can help you grow your minority business.

Today’s newly-released data from the U.S. Census Bureau is available by geographic area, industry and size of business.  |  Full release  |  Noticias en español

Secretary Locke Addresses Exports, Economic Growth and Job Creation with Minority Businesses

Secretary Locke talks at MED Week

On the final day of the National Minority Enterprise Development (MED) Week Conference hosted by the Commerce Department’s Minority Business Development Agency (MBDA), U.S. Commerce Secretary Gary Locke addressed minority business owners, government officials and corporate representatives and officially opened a Business-to-Business Expo Hall.

Locke discussed President Obama’s National Export Initiative (NEI) and how minority businesses can become more competitive and increase job creation and economic growth by participating in the global marketplace. Minority businesses already export twice as much as the average business, as they often have existing cultural, family or business ties to foreign countries. The NEI seeks to build on that, with a goal of increasing the number of small-, medium- and minority-owned businesses exporting to more than one market by 50 percent over the next five years.

Following his remarks, Locke officially opened and toured the Business-to-Business Expo Hall, which includes exhibit booths and one-on-one matching services with more than $20 billion in opportunities for minority businesses. The expo also offers 20-minute power-learning sessions conducted by public- and private-sector partners.

The MED Week Conference wraps up Friday night with the Awards Gala. U.S. Commerce Deputy Secretary Dennis Hightower will highlight the impact of minority-owned firms on the global economy and thank the MED Week award winners for their hard work.   Remarks