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U.S. Leader Lays Out Plan to Grow Minority Businesses in Speech

Posted by HH on December 2, 2009

David Hinson, National Director of the U.S. Department of Commerce Minority Business Development Agency (MBDA), was a keynote speaker at the PeopleFund Conference on Economic Opportunity on October 24 in Austin, Texas.  In his speech, Hinson provided an overview on the strategies MBDA is using to promote the growth and development of minority businesses.  Enclosed below is an excerpt from the transcript of his speech, and the link to the entire speech is at the end of this excerpt.

Good Afternoon! On behalf of President Barack Obama and Secretary of Commerce Gary Locke, it is my honor to be here today.

I’d like to take a moment to thank the Board of Directors for the People Fund for extending this wonderful invitation, specifically Mr. Hopeton Hay who has had a long career as a staunch advocate for minority business development.

I had the pleasure of being a guest on Mr. Hay’s radio show, “Economic Perspectives,” when I was first appointed to be the National Director of the Minority Business Development Agency only a few, short months ago.

I would also like to thank Kenia Davalos, Suzi Sosa and all of the other participants and panelists who have provided sound advice and counsel at this very important conference.

Hinson at PeopleFund Conference

But most of all, I want to thank the entrepreneurs and business owners here today, who are indeed the backbone of our nation, who continue to hang in during these very difficult times.

It is your unwillingness to flinch in the face of this economic downturn that is putting food on the tables of millions of workers nationwide and ensuring that these families remain hopeful as our economy adjusts to the impact of mistakes of the past. For this, you deserve our praise.

For those of you who may not know, the Minority Business Development Agency is the only agency in the federal government with the sole task of promoting the growth and global competitiveness of the minority business community. We manage over 46 centers nationwide, providing technical and business development assistance and access to capital to minority businesses of all sizes.

In our current business model, MBDA’s activities are centered on helping companies from these diverse communities obtain financing and contracts from both the public and private sectors. In 2008, MBDA generated more than $2 billion in contracts and financing for our clients and created more than 5,000 new jobs.  This gives MBDA a Return on Investment (ROI) of 74 times. In other words, for every tax payer dollar put into MBDA, we create $74 of economic output. Year-to-date, we have executed over $2.4 billion in contracts and financing and created nearly 3,000 new jobs in what has been an extremely challenging year for minority-owned businesses.

Over the last 40 years, MBDA has helped thousands of businesses grow.  And with a continued effort from MBDA, organizations like the People Fund and hundreds of strong entrepreneurs, like those of you here today, the minority business community now accounts for more than $660 billion in gross receipts and generates approximately 8 million jobs nationally.

In the great state of Texas alone, there are approximately 491,000 minority-owned firms generating more than $71 billion in gross receipts, and employing more than 543,000 workers. Between 1997 and 2002, minority firms in the state of Texas grew 34 percent (34%) and were significantly greater than the total growth percentage of all businesses in the entire state, which was only 13 percent (13%).

As you know, the state of Texas has the second largest minority population in the country!  And if the business activity matched the state’s minority population growth, there would be more than 830,000 minority businesses generating more than $305 billion and employing nearly 2 million workers.

To read the entire speech click here.

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