Entrepreneurship and small business ownership are lifelines for our economy and embody American ideals that we cherish! The entrepreneurial event that leads to business formation is frequently driven by layoffs, terminations, and downsizing; divorce; death of a spouse; or simply the proverbial glass ceiling. New business owners value their independence and control, the opportunity to offer a product or service to the competitive marketplace, and the potential to create wealth. Given these motivations and desired outcomes, it is not surprising that in the past 20 years, women have been leaders in new business start-ups. Since 1997 the numbers of businesses owned by women have increased by 74% or 1.5 times the national average. Moreover, within this important demographic, the best kept secret is that the number of businesses owned by African American women has increased by more than 300%! Federal and state government and corporate procurement programs specifically for minority and female businesses have inspired new business formations and contributed to the growth of these firms in some sectors.
But as liberating and rewarding as business ownership can be, it also can be a baptism by fire. The perennial operational challenges and even disconnect faced by start-ups and firms in transition, and even more so for minority and female businesses, can be daunting — employee conflicts, equipment breakdowns, the inability to make a payroll, inadequate sales, low pricing, and profitless growth. There is nothing glamorous about the evolution of a new product or service from conception to revenues to profitability. Aside from the maze of ups and down which challenge all businesses, too many minority and female firms are positioned in structurally defective markets with inherently weak revenue streams that can’t support growth. This and other limitations mean that many minority and female businesses fail to live up to their promise of creating jobs, improving the standard of living in their communities, and ultimately changing the landscape of our society.
At the center of this obstacle course is the entrepreneur whose initial success depends on his or her limited expanse of charisma, individual skills, and most importantly time. There are just 24 hours in a day! The dilemma is how to translate and replicate personal charisma and unique talents, imbue values, and reproduce ideas to create a viable organization, company brand, and culture.