4DIJMS-Vol-9,Issue

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1 4D International Journal of Management and Science ISSN No: Vol. 9, Issue1,-2018 MINORITIES, WOMEN AND IMMIGRANTS IN THE NORTH CAROLINA: BUSINESS OWNED, CHALLENGES AND POTENTIALS I. ABSTRACT Author Dr. Nisha Singh* Relative to the civil right era, minorities, women and immigrants in the United States have made a giant stride in all spectrums of human endeavors in the United States. The main objective of this research paper is to study the business ownership of minority, women and immigrant in the North Carolina and to find out the cause of failures and opportunities for future growth in real estate businesses, manufacturing business, transportation and service business. This article takes a comprehensive look at how minority women and immigrant are faring in the business environment within the state of North Carolina. The author believes that, the chosen state is a microcosm of most of the remaining Southern states, and the analysis herein is essentially true to what is obtainable in those other states. KEYWORDS: MINORITIES, BLACK, ASIAN, LATINOS, ENTREPRENEURSHIP, BUSINESS SUCCESS, FUNDING *Dr. Nisha Singh-Chair-Person(Business),Livingstone College, NC,USA 4DIJMS-Vol.9,Issue-1,2018[Type text] Page 8

2 II. INTRODUCTION The State of North Carolina is the tenth largest state in the nation, with its largest city of Charlotte, being, until recently, the second financial hub in the nation, only after New York City. Charlotte effectively lost that position in the wake of the last recession with its attendant havoc on the economy, and subsequently the acquisition by, the California based,wells Fargo Bank, N.A. According to the data culled from the United States Census Bureau, the total nonfarm private establishments nationwide was more than 7 million, while in North Carolina, that number was approximately 218 thousand. Women shares both nationally and in the Tar-Heel State statistically tied at 28 percent; essentially leaving men with the lion shares of the national corporate ownership. Among this, black owned constitutes about 10.5% in the State of North Carolina, while that figure is even smaller on the national scale, at 7.1%, (United States Census Bureau, 2013).A minority owned business is understood to be one in which a person or a group of persons of Blacks, Native Americans, Asians, Native Hawaiians and or Hispanic background own a 51 percent or more shares or interests. (Robb & Fairlie, 2008). There were about 4 million minority people who received certification by Minority Business Entrepreneurship(MBEs) in 2002 which was up from just over 3 million in The number of Women Business Entrepreneurship (WBEs) increased from 5.4 million in 1997 to 6.5 million in 2002 with the average number of WBEs lower in 2002 than in In 2002, all MBEs market share was 2.9% while their population share was 26% which was lower than white men market sale share of 29.0% and white women market sale share of 3.7%. All MBEs national market sale share was lower than the white women market sale share (Table-1, state policies and programs for minority- and women-business development). III. RESEARCH METHODOLOGY: 4DIJMS-Vol.9,Issue-1,2018[Type text] Page 9

3 The findings in this research study are supported by the historical data. The major data sources have been US census , US Government Data, authentic websites and published research studies. The data sources are reviewed and analyzed to draw conclusion using graphs and tables IV. LITERATURE REVIEW Minorities, women and immigrants in US economy have been widely discussed. There could be varying opinions in this area, but it has been a matter of constant evaluation. There are number of research studies and updates on this topic. Immigrants are nearly 30 percent more likely to start a business as compared to non-immigrants, and they represent 16.7 percent of all business owners in the United States. Immigrant business owners make significant contribution to business income, generating $ 67 billion of the $577 billion in US business income, as estimated from US census data. Ten high-tech companies started by immigrants earned 831 billion in revenue during According to the American Immigration Council, there are more than 20 million immigrant women and girls in the United States today, and they are a formidable presence in U.S. society and the U.S. economy (Lalit,2014). Immigrant women come from every corner of the globe and slightly outnumber immigrant men. They are more likely than men to come to the United States through the family-based immigration system, and nearly half are naturalized U.S. citizens (Lalit, 2014). More than a quarter of immigrant women have a bachelor s degree or more education, with women from India being the most highly educated, followed by those from the Philippines and China. Foreign-born women account for 15 percent of all employed women over the age of 16 in the United States. In fact, women from the Philippines, El Salvador, Vietnam, the Dominican Republic, and Guatemala have higher rates of participation in the labor force than 4DIJMS-Vol.9,Issue-1,2018[Type text] Page 10

4 native-born women. Immigrant women work in every occupation, with one-third being in management and professional occupations, while nearly a third work in service occupations and under a quarter in sales and office occupations. Despite their hard work and educational achievements, immigrant women earn less than foreign-born men, and less than native-born men or women. Given their numbers and diversity, the scale of their economic contributions cannot be denied. There were 20.9 million female immigrants in the United States in 2012, accounting for just over half (51.3 percent) of the total foreign-born population. Similarly, females accounted for roughly half (50.7 percent) of the native-born population. Data from the Department of Homeland Security (DHS) indicate that female immigrants are more likely than male immigrants to come to the United States through the family-based class of admissions, rather than through employment. American Immigration Council also specifies that Immigrant women in the labor force earn comparatively less income than the native women as well as the immigrant men.the possible reasons could be lack of professional skills and appropriate training. Many scholars have studied the economic activities of immigrants in the United States of America. Immigrant population is approximately 11% of overall population and 10% of the total businesses in the United States are owned by immigrants. (Borjas, 1986; Schuetze & Antecol, 2007; Fairlie & Robb, 2008 and others). In North Carolina immigrant population share is 7.9%, minority population is 26.33% of total population. While total minority owned firm is 10.79% of total firm and annual sales of minority-owned firms in North Carolina is 1.29% (US Bureau of Labor Statistics, Current Population Survey, 2005 March Supplement).According to the United States Census Bureau statistics released in 2005, black-owned businesses grew by 45 percent between 1997 and 2002; Asian-owned businesses grew by 24 percent, and Hispanic-owned businesses tripled the national average growing by 31 percent during the same time. As at 2007, 4DIJMS-Vol.9,Issue-1,2018[Type text] Page 11

5 minority owned firms numbered 5.8 million, up from 4.0 million in 2002, an increase of 45.5 percent, and more than double the 17.9 percent increase for all U.S. businesses, according to the U.S. Census Bureau's 2007 Survey of Business Owners. Receipts of minority owned firms increased 55.0 percent to $1.0 trillion over the five-year period, compared with the 32.9 percent increase for all businesses nationwide. In 2007, about 21.3 percent of the nation's 27.1 million firms were minority-owned.congress amended section 8(a) of the Minority Small Business and Capital Ownership Development Program (1978), Business Opportunity Development Reform Act of 1988 (1988), and President Reagan executive order (1983), so many different programs been started to increase the minority business ownership.in spite of all the growth minority owned firms sale percent is still very low in manufacturing industries, service industries, transportation, wholesale trading, financing etc. (US department of commerce, MBDA, Minority business development agencies V. BUSINESS OWNERSHIP, CHALLENGES AND POTENTIALS: The center for American Progress Action Fund declared in its 2013 report that 61 percent ofwomen are on managerial positions in the U.S. and still get paid 77 cents less for every dollar paid to their male counterpart for the same position. While several research have shown that minorities, especially Black entrepreneurs are more likely than their white counterparts to attempt a new business, they, however, are more likely to fail, (Sullivan, 2007). While the trend continues until today despite this common knowledge, this research is therefore compelled to investigate the reasons behind such occurrence with the probable aim of offering lasting solutions to the problem. 4DIJMS-Vol.9,Issue-1,2018[Type text] Page 12

6 Table 1-North Carolina Population Male Female Total % Total Population 4,645,492 4,889,991 9,535, White 3,196,032 3,332,918 6,528, Black or African American 958,903 1,089,725 2,048, Hispanic or Latino 427, , , Some other race 226, , , Asian 99, , , Two or More Races 100, , , American Indian 59,752 62, , Three or more races 7,310 9,045 16, Native Hawaiian Pacific Islander 3,435 3,169 6, Native Hawaiian , Alaska Native tribes Source: U.S. Census Bureau: As seen clearly from the table1, whites constitute over 68 percent of the total population, in North Carolna whereas, the African American population stands at a little over 21 percent. Latino population comes a distant third at about 8 percent of the total population. Total of women population in North Carolina as at 2013 was slighly more than half at over 51 percent, out of this white women take 68.2 percent, consistent with the overall white population in the entire North Carolina. Black women among all women population in the state takes about 22 percent and Latino women population constitutes about 7.6 percent. Interestingly, each of these women demographic seems to represent the exact total composition of their races in the cummulative north carolina population. Table 2-North Carolina and The United States Population Statistics Business Categories NC USA Population, million million Black or African American 22.1% 13.2% White Population 71.5% 77.4% American Indian and Alaska Native 1.6% 1.2% Asian 2.7% 5.4% Native Hawaiian and Other Pacific Islander.1%.2% Hispanic or Latino 9.0% 17.4%% 4DIJMS-Vol.9,Issue-1,2018[Type text] Page 13

7 Source: U.S. Census Bureau, 2012 Survey of Business Owners Table 3- Race and their firms ownership in NC 1997 in % Total Population 7,428,672 Total Firms: 570,484 Annual sales of all firms in the State $518.6 billion 1997 Total Minority Population: Total Minority-Owned Firms Annual sales of Minority-owned firms in State $6.7 billion Total African American-owned firms Annual sales from African American-owned firms $2.3 billion Asian & Pacific Islander-owned firms Annual sales of Asian & Pacific Islander-owned firms $2.5 billion Hispanic-owned Firms Annual sales of Hispanic-owned firms $1.1 billion American Indian & Alaska Natives-owned firms Annual sales of American Indian & Alaska Nativesowned firms $911.9 million Source: U.S. Census Bureau, 2012 Survey of Business Owners As shown in table2& table 3, African American population is 22.1% population of North Carolina which is higher than the national rate 13.2% (table-3), their firms ownership is 6.99% and their annual sale is.44% of overall firms sale in North Carolina. This statistic clearly shows that N.C. need, some good policies to improve this. North Carolina Asian papulation is 2.7% which is lower than national rate 5.4%, their firms ownership is 1.41 % and their annual sale is.48% which is higher than African American sale percentage (Table- 3). Above information indicate that N.C. need to work on immigration to support the N.C. economy. 4DIJMS-Vol.9,Issue-1,2018[Type text] Page 14

8 Table 4-Race and their firms ownership in USA and NC 2007 Firms NC USA Total number of firms, ,791 27,092,908 Black-owned firms, percent, % (1.3)7.1% White owned firms 72% (90.7%)79.2% American Indian- and Alaska Native-owned firms, percent, % 0.9% Asian-owned firms, percent, % (6.6)5.7% Native Hawaiian and Other Pacific Islander-owned firms, percent, % 0.1% Hispanic-owned firms, percent, % (3.6)8.3% Women-owned firms, percent, % (11.3)36.2% Source: U.S. Census Bureau, 2012 Survey of Business Owners As shown in table 3 and table 4;the minorities, immigrants and women population increased in North Corolina and their holding of firm ownership also increased. The Africa Americn holding the firm ownership (10.5%) in north carolina is higher than national rate7.1%. Inspite of these fact, their firms annual sale is comparabily very low (table 5). Total minority-owned firms share is only 10% of total firms annual sales of Minority-owned firms in U>S while inn.c. it is only 1.29%. Findings Table 5 Minority Owned Businesses by Sector Asian %of all Industry Total # Minority African & American sales of % Description of firm firm American Pacific Hispanic Indian all firm minority All industries 570,48 61,551 39,901 Island 8,050 7,270 7, Agricultural 18,148 1,806 1, services, Construction 86,488 7,289 3, Manufacturin 20, g Transportatio 22,979 3,867 3, Wholesale 22, trade Retail trade 84,107 8,805 4, Service 220,99 28,217 20, industries Finance, 56,3864 2,834 1, insurance and real 4DIJMS-Vol.9,Issue-1,2018[Type estate text] Page 15 industries

9 Industries not 6,952 3, Source: Classified U.S. Census 39,266 Bureau, 2012 Survey of Business Owners, Statistical Abstract of the United States: 2012 (131st Edition) Our findings are directed to few important areas whichplay a vital role to improve minorities, women and immigrant business ownership and improve sailing share of their business. These areas arereal state, wholesale trade, transportation and manufacturing industries (table-5). Hispanic dominate agriculture and construction business; whereas African American hold most transportation business. Still their share size is very small in the comparison of another race. Conclusion: Minorities, women and immigrant contribute a great deal to the US economythrough the agriculture industries, construction businesses. In 2016 the United States total population was 318 million and total immigrant population was 47 million and in 2006, according to the U.S. Census Bureau, North Carolina Papulation was 9,535,483 and hometo 614,198 foreign-born people, making up 6.9 percent of the N.C. s total population. Total Immigrant school going population is only (13%). They are contributing in the U.S. economic growth without burdening public services. Table-6 National Market Share, in $ Ownership African Americans or Blacks $97,000 $74,000 Hispanics or Latinos $174,000 $141,000 American Indian or Alaska Native $195,000 $133,000 Asian $380,000 $296,000 Hawaiian or Pacific Islander $239,000 $148,000 Women $169, ,000 sources: State policies and programs for minority- and women-business development To help the minorities and women in business in North Carolina the government or Small Business Administration (SBA) introduced several programs such as the Small Business and Technology Development Centers (SBTDC), Women s Business Centers (WBC) and North 4DIJMS-Vol.9,Issue-1,2018[Type text] Page 16

10 Carolina Institute of Minority Economic Development. These programsare partially funded by the Small Business Administration, to provide free counseling and technical assistance for minorities and women. The SBA has a variety of loan programs that promoteminority business growth, which may be a more effective method of reducing minority unemployment than overall economic and employment growth (Bates 1993, Boston 1999, 2006, and U.S. Census Bureau 1997). My research study suggests that rather than to focus onincreases the number of people for certificate program the government need to review their financial impact. My finding shows some of the important areas where North Carolina government policies need to be liberalized for minority to boost up their income. The area of consideration is North Carolina government need to form better immigrant policy to increase immigrant population. Nearly half of foreign born workers in America work in white color jobs, including management, sales, technology and administration. Almost in last decade s 64% of innovation in the United States were made by immigrant (Economic Contribution of Immigrant, August 2013). In North Carolina immigrant population percentage is 2.5% while the national percentage is 5.7% in 2007 (table-4). The real estate business where minority do not seem to be very much interested. However, real estate business can be converted as a source of good income for minorities and immigrant, enabling them to contribute to the economic growth. We recommend that a further research is needed in this area. 4DIJMS-Vol.9,Issue-1,2018[Type text] Page 17

11 References: 1. Astebro Thomas and Irwin Bernhardt., Start-Up Financing, Owner Characteristics andsurvival, Journal of Economics and Business, 55(4), Bates, Timothy. (1993) Banking on Black Enterprise. Washington, D.C.: Joint Center for Political and Economic Studies. 3. Bates, Timothy, and Darrell Williams. (1996) Do Preferential Procurement Programs Benefit Minority Business? American Economic Review, 86(2): Borjas, G., 1986, The self-employment experience of immigrants, Journal of Human Resources, 21 (1986) Bates, Timothy, and David Howell "The Declining Status of African American Men inthe New York City Construction Industry. In Race, Markets, and Social outcomes, edited by Patrick Mason and Rhonda Williams. Boston: Kluwer 6. Black, Jane, David de Meza, and David Jeffreys., "House Prices, The Supply of Collateral and the Enterprise Economy." The Economic Journal. 106 (434): Bates, T. (2006). The Urban Development Potential of Black-Owned Businesses. Journal Of The American Planning Association, 72(2), Robert W. Fairlie (2008) Estimating the Contribution of Immigrant Business Owners to the U.S. Economy 9. Fairlie, R & Robb, (2008) Race and entrepreneurial success: Black, Asian-, & White-owned businesses in the United States, Cambridge, MA: MIT Press. 10. Fairlie, Robert W., Estimating the Contribution of Immigrant Business Owners to the U.S. Economy, U.S. Small Business Administration, Office of Advocacy, Washington, D.C. 11. Fiscal Policy Institute analysis of American community Survey 2010 five year estimate. 12. Harris, M.L., Grubb III, W., & Hebert, F. J. (2005). Critical Problems of Rural Small Business: Comparison of African -American and white-owned formation and early growth firms. Journal of development entrepreneurship, 10(3), Jason Richwine ( , )- National Research Initiative fellow at the American Enterprise Institute in Washington 4DIJMS-Vol.9,Issue-1,2018[Type text] Page 18

12 14. KamleshJain,Robert H. Smith &Vinod Jain- The Economics of Immigration: Theory and Policy by Orn B Bodvarsson, Henric Van Den (Chapter9,page221) 15. Lalit Sharma (2015) Impact of Regional Differences within State on the Factors Influencing Youth Entrepreneurship A Case of Garhwal and Kumaun Regions of Uttarakhand DOI: / National Research Council, The New Americans: Economic, Demographic, and Fiscal Effects of Immigration, ed. James P. Smith and Barry Edmonston (Washington, D.C.: National Academies Press, 1997), p. 337.) 17. Nisha Singh, 2014, Economic Contribution of Immigrant Conference: 4th Annual International Business Conference at Saint Leo University, Florida, Feb. 13th -15th. Published: Journal of Business and Economics, ISSN , USA, Volume: 4, Volume: Schuetze, H.J. and H. Antecol, Immigration, entrepreneurship and the mixture start up process, the life cycle of entrepreneurial ventures: International handbook series on entrepreneurship, Vol. 3, Parker, ed., Springer, New York (2007). 19. US Department of Homeland Security office of Immigration Statistics 2010-year book of immigration Statistics. 20. Wadhwa, Vivek, AnnaLee Saxenian, Ben Rissing, and Gary Gereffi "America s NewImmigrant Entrepreneurs," Duke University Report 21. Sources: US department of commerce, MBDA, Minority business development agencies Source: US Bureau of Labor Statistics, Current Population Survey, 2005 March Supplement 23. Robb, A. M., & Fairlie, R. W. (2009). Determinants of business success: an examination of Asian-owned businesses in the USA. Journal of Population Economics, 22(4), doi: /s Valdez, Z. (2008). The Effect of Social Capital on White, Korean, Mexican and Black Business Owners' Earnings in the US. Journal of Ethnic & Migration Studies, 34(6), doi: / DIJMS-Vol.9,Issue-1,2018[Type text] Page 19

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