New businesses give rise to new jobs. 2015 research by the Brookings Institute shows 40% of the new jobs created in the past 20 years were the result of new businesses emerged. Small businesses gave birth to nearly 2 million of the 3 million jobs appeared in the private sector in 2014.
Women and minorities are creating more and more new jobs. From 1997 to 2007, the number of small businesses owned by minorities grew by more than 25%. The number of businesses owned by women increased by 7%. The number of businesses that weren’t owned by minorities rose by only 6% during those years. As for businesses owned by male entrepreneurs, they decreased by 7%.
Businesses Owned by Women and Minorities
Businesses owned by women made up nearly 30% of all businesses based in America. They brought about an economic impact of almost $3 trillion, thus generating or maintaining 23 million jobs or 16% of all the jobs in the US. In 2016, female founders introduced innovative companies and earned millions to expand their businesses. 2017 is expected to see more success and increase in the field.
However, women entrepreneurs have difficulty getting approved for business funding: the total dollar value of all small business loans going to women entrepreneurs accounts for only 4%. With this in mind, it’s highly important to turn to a reputable business loan provider like firstamericanmerchant.com (FAM) to get access to business capital. Your credit history is not a problem for First American Merchant.
Businesses owned by Latino entrepreneurs represent the fastest growing rate. However, the average sales of Latino-owned businesses didn’t dramatically change from 1997 to 2012. Businesses owned by non-Latino entrepreneurs grew 34% during those years. the data was provided by the Stanford Graduate School of Business. Less than 15 of Latino-owned startups got business financing from venture capitalists.
Program by JPMorgan Chase & Co.
JPMorgan Chase & Co. is growing its program called the Small Business Forward to offer more help to small businesses. Chase is going to more than double its support by giving $75 million in favor of small businesses owned by women, minorities, and veterans in the upcoming 3 years.
In October 2015, Chase provided the Fund with a $3 million grant for the first time. In March 2016, the bank increased the amount by $5 million in investment capital. In 2015, Chase introduced a new $6.5 lending program for minority-owned businesses in Detroit and businesses focused on hiring people of color.
In October 2016, Chase partnered with a nonprofit lender to offer a $4.6 million grant for the new LiftUP Initiative. The purpose is to provide larger economic opportunities for businesses owned by minorities and women in Atlanta, Austin, Dallas, Houston, New Orleans, and San Antonio.