MB Catalyst aims to positively stimulate growth of Minority (owned) Businesses by serving as a progressive platform for exposure by capturing the challenges, building blocks to success and cultural perspectives and values that ultimately serve as a competitive advantage at a global scale.
Minority owned businesses have made a significant contribution to the U.S. economy by generating $661 billon in total gross receipts in 2002. They are responsible for the employment of 4.7 million people with an annual payroll totaling $115 billion. According the U.S. Department of Commerce, the growth of Minority owned businesses outpaced non-minority owed businesses from 1997 to 2002. It is safe to say that entrepreneurship has a new face with minority representation in various industries such as Healthcare & social assistance, Science and Technology, Administrative support, Waste Management & Remediation, Transportation & Warehousing, Real Estate among others. And there is room for advancement.
It is important to note that racial discrimination forms part of the entrepreneurial landscape for minorities as they have a lower access to capital and markets. They are 3 times more likely to be denied loans than non-minority business owners or face a higher interest rate. Not to mention, they also secure a lower number and dollar amount in contracts. According to the U.S. Small Business Association, racially diverse Small Business Investment Companies are more likely to investments in minority-led and minority-owned businesses, however, the great lack of minority representation in small business investment companies and among venture investors does not ease the journey. Nonetheless, Minority owned businesses continue to gain momentum and are found to invest substantially less capital at startup and have less than half the average amount of recent equity investments and loans than non-minority firms.
MB Catalyst aims to be a light source for minority owned firms in the obscure path of entrepreneurship by providing an exposure platform to market their products and inspire upcoming businesses. The U.S. is projected to depend vastly on Minority owned Businesses by 2044 as they have the potential to cater to a growing population and seize opportunity gaps not yet identified. This is key to strengthening American competitiveness and MB Catalyst plans to capture it all by featuring innovative businesses that breathe their cultural traditions into their businesses and form part of this venture.