Minority-Owned Businesses Face Challenges in Accessing Capital

Previously the president of Diversity Food Processing LLC, Stephen Singleteary grew the company to employ over 300 people and become one of the largest African-American-owned companies in the country. During this journey, Stephen Singleteary learned first-hand the challenges facing minority-owned businesses, one of which is access to capital. 

Minority-owned businesses face significant challenges accessing capital for their businesses. A study conducted by the Minority Business Development Agency revealed that minority-owned businesses were less likely to access lender financing than non-minority owned businesses. For those that did get loans, bias was evident in the amounts lent. According to the study, minority-owned businesses with less than $500,000 gross receipts received an average of $149,000 in loans, while non-minority owned businesses in the same category received an average of $310,000 in loans. 

In business, lack of capital can be the difference between success and failure. Therefore, much should be done by local, state, and federal agencies to improve access to finance among minority-owned businesses, since these businesses employed over 6.3 million people and generated $1.8 trillion in revenue in 2016. Minority-owned businesses can also do a lot to improve their chances of accessing loans. For example, they can keep good records of their financial performance, hire independent auditors to examine their financial statements, hire solid management teams, and maintain strong competitive advantages.

Gender Pay Gap Actually Indicates Opportunity Gap in Corporate America

Stephen Singleteary began his career as an accountant before earning his JD from DePaul University School of Law. As a financial and legal professional, Stephen Singleteary is aware of the difficulties women face in growing their careers. One of them is the ever-present opportunity gap.

Women are continually denied leadership opportunities in corporate institutions. In fact, new research suggests the pay gap that women face in their careers is actually a consequence of the opportunity gap that exists today. PayScale conducted an online survey between January 2016 and February 2018. More than 2 million respondents participated in the study. This is what PayScale found:

On average, women earned 77.9 cents for every dollar men earned. This gap grew larger at more senior job levels. A woman in her 20s earns 81.8 cents for every dollar a man in the same age bracket earns. A woman aged 30-44 years earns 76.1 cents for every dollar a man does, and a woman aged 45 or older earns 69.1 cents for every dollar a man does. 

The reason for the progressive pay gap was the higher career growth opportunities men benefited from. The study revealed that men were 70 percent more likely to be in vice president or C-suite roles by mid-career and 142 percent more likely by late career. These advancements come with higher incomes. Therefore, companies that want to close the wage gap should first consider taking steps to close the opportunity gap.

It should be noted that studies have shown that the pay gap is even wider and the career opportunities are significantly less for women of color.

Spotlight - 2018 NMSDC Conference and Business Opportunity Exchange

Stephen Singleteary is a former president of Virginia's Diversity Food Processing LLC who now serves as principal of Legacy Food Solutions. Augmenting his career in the food processing sector, Stephen Singleteary holds membership with the National Minority Supplier Development Council (NMSDC).

The 2018 NMSDC Conference and Business Opportunity Exchange is taking place from October 14 to 17 in Austin, Texas, and will include more than 6,000 corporate CEOs, supplier diversity professionals, procurement executives from prominent multinational companies, and renowned minority business owners. The four-day event features more than 20 industry-specific sessions and workshops and operates on a collective mission to develop and advocate for more minority-owned firms in the worldwide corporate supply chain. 

The event will also feature more than 700 exhibit booths for minority businesses to showcase their products and services as well as a one-day Business Opportunity Exchange trade show, which is new to the annual conference. Awards will also be distributed for the Suppliers of the Year, Regional Council of the Year, and Corporation of the Year.