On May 8, the Senate Small Business and Entrepreneurship Committee held a hearing, “Strengthening the Entrepreneurial Ecosystem for Minority Women.”
Chair Mary Landrieu (D-LA) and Ranking Member Jim Risch (R-ID) heard testimony regarding the existing programs available to, and the continued need for support for, minority women small business owners.
Alejandra Castillo, national deputy director, Minority Business Development Agency at the Department of Commerce, noted that, “According to a recent study commissioned by American Express OPEN, there are nearly three million firms owned by women of color in the United States, comprising one third of all women-owned firms. Minority women-owned firms also generate $226.8 billion in total revenue and employ nearly 1.4 million Americans. Indeed, these encouraging numbers represent a tremendous increase over the last 16 years. For example, in 1997 the same American Express report found that in the United States women of color owned fewer than one million firms, and comprised less than 17 percent of all women-owned firms. Latina-owned firms in particular have seen tremendous growth over the last 16 years; the number of these firms has tripled, while their employment has risen 74 percent, outpacing all women-owned firms.”
Ms. Castillo continued, “Though the growth of this segment has generally outpaced the growth of non-minority women-owned firms, firms owned by women of color still lag behind in terms of average employment and revenues. For example, in 2007 the average gross receipts of minority female-owned firms amounted to only $84,000 per firm, less than half the average gross receipts of their non-minority female counterparts ($181,000). They continue to encounter obstacles to their continued growth and economic success. These obstacles include access to contracts, access to capital, as well as the lack of informal networks to assist in the pursuit of opportunities.”
The following witness also testified:
