NEW YORK: 20TH BEST STATE FOR MINORITY-OWNED BUSINESSES
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recent study shows that despite facing an uphill climb, there are a record 1.2 million minority-owned businesses in America. New York is the No. 20 best state for them to succeed. However, succeeding as an entrepreneur is tough. Roughly 20% of all entrepreneurs fail within their first year. The ultimate reason — they do not have enough capital. The issue disproportionally impacts minorities. Minorities have an even steeper hill to climb. Income inequality, limited access to loans and other biases lead to a lack of capital needed to start businesses and survive the early years in the red. Lendio released a study on the best and worst states for minority entrepreneurs using the most recent data from the Census Bureau and the Small Business Administration. Lendio offers small business financing and loans online. It doesn’t lend money directly itself; rather, it partners with a network of more than 75 other lenders to help businesses get the funding. The rankings were determined by analyzing myriad factors in all 50 states and D.C. including percentage of businesses that are minority owned, job growth at these companies, unemployment and business loans to underserved communities.
The 10 best states for minority entrepreneurs are Hawaii, Maryland, Maine, Delaware, New Jersey, Florida, California, Virginia, Texas and Idaho. The average white household earns $77,999 per year compared to $57,981 for Hispanics and $48,297 for blacks. Meanwhile, 52% of white applicants get fully approved for business loans, compared to 27% and 28% for Hispanic and black entrepreneurs. Despite these challenges, many states are strong incubators of minority businesses. The good news is that the government is taking steps to level the playing field. The percentage of the SBA’s Community Advantage loans awarded to underserved communities increased from 34% in 2017 to 45% in 2022.
Key Findings • New York: Minorities own 23.7% of all businesses and 29.6% of startups less than two years old. The number of jobs at these companies grew by 83% from 2019-21. The state distributes fewer business loans to underserved communities ($292 per capita) compared to the national average ($351 per capita) through the Federal Community Reinvestment Act. • The national outlook is mixed: From 2017-20, companies started by minorities increased substantially across the country: Native Americans (64.8%), Pacific Islanders (28.8%), Latinos (16.5%), Blacks (13.6%) and Asians (10.2%). However, while 52% of business loans get fully approved for whites, that drops to 35% for Asians, 28% for Hispanics and 27% for Blacks. By setting up shop in a favorable location, minority entrepreneurs improve their chances to succeed. Many lower-ranking states are increasing their investments in underserved communities.
90 OSWEGO COUNTY BUSINESS AUGUST / SEPTEMBER 2023
or women,” Rolling said. “Whenever UMEA is in the market for goods and services, we turn right back around and hire minorities. The economic impact is tremendous, it is enormous.” The Black and Latino buying power in the region is more than $170 billion. There are thousands of Black and Latino entrepreneurs offering diverse goods and services. There are other minority-oriented chambers in the state and around the country, Rolling said, adding “UMEA is the only minority chamber of commerce in the Central and Ipstate region. There is representation in Albany, Rochester and Buffalo.” She is on the board of directors of the Upstate Black Chamber of Commerce. It is based out of Albany, but it is region-focused. It seeks to connect Black and minority chambers from a regional perspective, she explained. Rolling said she has been with UMEA since 2019, “a bit before pandemic.” She describes herself as “a serial entrepreneur.” “I own two types of businesses. One centers around financial literacy education and the other one is, I’m the operator of an events franchise,” she said. “By training I have been in the events and conference industry for going on three decades — UMEA happened by osmosis.” Financial literacy offers classes on financial empowerment. She is a franchisee of Event Prep, which provides event planning to clients nationwide.
Time to relax With all that she has going, how does she find time to relax? “I appreciate the question. I really do; thank you for asking,” she replied. “When I do get down time, I have to guard it ferociously as you can well imagine. It’s typically low-key. My favorite TV channel is Turner Classic Movies. My husband and I love watching TCM. I enjoy taking walks whether they are in my neighborhood or in one of Syracuse’s beauuutiful parks. We have so many beautiful parks and lakes that are minutes from each other! I like to walk, ride my bike in terms of physical activity or watch TCM and then the only other thing I’d add to that is when I get the opportunity I just lounge on the deck.” For more information on UMEA, visit www.upstatemea.com.
