Growth Without Growth: An Analysis of the State of Minority-Owned Businesses in the United States‪.‬

Introduction The decade of the 1990s was a period of remarkable economic expansion for the United States. This period was characterized by strong economic growth, high rates of employment, low inflation, unprecedented growth in high-technology-based businesses and the internet sector, and overall appreciation in standards of living across the board. Figures from the U.S. Bureau of Economic Analysis and the Bureau of Labor Statistics reveal that the minority groups, especially Blacks and Hispanics, benefitted substantially from this period of economic expansion. While the rising tide of economic prosperity lifted individual minority households, a nagging question remained: how did minority-owned businesses (MOB) fair in this period of extraordinary prosperity? Did they participate fairly in this expansion or were they left out? Since the issue of the performance of MOB is always a concern to policy makers at all levels of government, this study seeks to explore the impact, if any, of the economic boom on MOB. If MOB shared in the prosperity, to what extent did they prosper in relation to all U.S. firms? Another compelling reason to track the progress of MOB is to determine whether efforts by the government to encourage these businesses are yielding desired dividends. If desired dividends are not forthcoming, then an appraisal of government efforts is called for. It is only after an analysis is done that we can ascertain whether or not a change in current or orthodox means of boosting minority business ownership is warranted. These are the issues that this study will explore, and hopefully shed some light on the status of MOB.