On the Fringes of the Economy

Because minority businesses are generally small and operate on the fringes of the American mainstream economy as it is, they have very little margin for error.

Securing corporate and government contracts, a challenge in good times, has become virtually impossible in this recessionary environment. As a result, the recession has caused a precipitous decline in revenues and has rendered many companies unprofitable.

The National Minority Supplier Development Council has worked full time to assist minority companies with gaining access to contracts with the likes of General Motors and Ford. It is rather self-evident that business from the auto companies has all but dried up. In the case of government contracts, a substantial percentage of the contracts have been as sub-contracts with larger government contractors.

With tight budget and spending contraction, minorities face a shrinking opportunity set with large government contractors. The new Administration’s expressed plans to enact an economic stimulus package offers some hope, but the true nature of the revenue opportunities are yet unknown.