Poor economy affects minority-owned businesses, student employment

At her office in Kalamazoo, Erma Jones Gordon meets with minorities who wish to become entrepreneurs. With the economy continuing to crumble, her position becomes even more important for those wanting to start a business.

“Every time we turn on the TV, somebody’s closing,” said Gordon, founder and executive director for the Minority Business Alliance of southwest Michigan.

“The average, everyday person has no jobs.”

Although the economy is affecting everyone, minorities are the most disadvantaged, Gordon said.

Those hoping to begin their own small businesses are especially finding a challenge, she added.

“Often times (minorities) start out with less collateral,” she said.

With less collateral, Gordon said they may run into difficulty acquiring a loan.

However, the consultant for many of these to-be minority business owners said she’s been the witness to numerous unfortunate incidences in her clients’ business lives.

Gordon frequently sees prospective entrepreneurs spending money before they research business plans.

“Research is critical,” she said. “I would encourage them to do their research and talk to other small business owners so that they don’t think that they’re in it by themselves.”

For new business owners, research is a must, especially with the state of the economy. As of November 2008, the Michigan unemployment rate was reported to be at 9.1 percent, well above the nation’s 6 percent rate, according to Michigan Works!

“We’ve definitely seen an increase in the number of people that are … needing some help,” said Kate Tykocki, spokeswoman for Michigan Works!, a career service program for unemployed Michigan residents.

The program is backed by state and federal aid. Although it is growing, Michigan Works! can’t rely on fund increases.

“The state has better concerns right now,” Tykocki said.

However, minorities interested in pursuing a career in business may not need to worry if they don’t desire a small enterprise of their own.

Ernest Betts, assistant dean for multicultural affairs at the Eli Broad College of Business, said minority students are at a greater advantage when searching for work within larger corporations.

“The minority students are being placed very well — corporations are interested in diversifying their work force,” Betts said.

Betts said the globalized state of business — corporations are beginning to look for individuals who can relate to those in different cultures during business affairs.

Betts’ assurance for minorities also is proven with the current state of the Multicultural Business Programs. The programs are growing larger not only in student enrollment but in their actions.

If everything goes as planned, the programs’ organizers will be launching a spin-off of their Summer Business Institute exclusively for American Indians in the summer 2010.

The institute, a program for incoming freshmen interested in business, is a week-long series of lectures, seminars and workshops about skills necessary for achievement in business.

Along with the expansion of the institute, Betts said the programs may also expand current study abroad programs 
by adding two more destinations to its two existing programs.

One of the Multicultural 
Business Programs’ events is a competition held Feb. 
18.

Students choose their most influential historical 
hero, which Betts said will 
help educate participants 
on multicultural importance.

“We are inclusive of all 
socioeconomic backgrounds. That’s what we do to commemorate Martin Luther King,” he said.

“But we don’t just do it on Martin Luther King Day. We do it every day.”