Minority Business Development: An International Comparison

The migration of people from the developing nations to the industrialized world has created significant minority population concentrations in those industrialized countries. Invariably, the minority population (generally black, Hispanic, and/or Asian) occupies the lower end of the socioeconomic distribution spectrum because of lower levels of educational achievement and higher unemployment rates. The host countries confronted with these issues of minority inequities are exploring a variety of alternatives to alleviate the socioeconomic problems; one of which is minority business development. This article looks at the industrialized countries of Canada, France, Great Britain, Holland, West Germany, and the United States, and how they are addressing the issue of minority business development. The size and diversity of the minority population, the economic, social, and political conditions under which they migrate, and the host country recognition of their status affects the economic climate and the development success of this business sector, formed outside of their native habitats. Although conditions differ from country to country, minority businesses in general suffer from similar problems of capital access, market restrictions, and general management inadequacies. The developmental path of these business sectors are, however, affected by the host country policy and the official programs designed specifically to address their needs.