Within the confines of the broad definition of entrepreneurship, diversity is becoming more of a factor than ever before. And it got us thinking here at FranNet on blogging about just how diverse the franchise industry is. Scouring the best research the Internet has to offer, we found a few insightful articles and reports that show diversity is a real trend. We sought multiple (and citable) sources for our information and here’s a little bit of what we discovered:
A good starting point for us was the annual Kauffman Foundation's Index of Startup Activity. For the year 2016, they found a particularly ripe environment for diversity in entrepreneurship. For instance, the number of female entrepreneurs who started their own business has seen its highest rate in nearly 20 years. Within their methodology, there were 260 women per 100,000 entering the startup world. Adding to these stats, we also found that according to Kauffman’s research, minorities have become 40 percent of all new entrepreneurs and immigrants made up 28 percent in 2016. Latinos made up the largest segment of minorities starting their own business.
The U.S. Small Business Association (SBA) also carefully tracks business startups by minorities. According to their 2015 data, African Americans represented seven percent of all new businesses, Asians represented just over four percent and Latinos accounted for over 10 percent of all entrepreneurial ventures.
The SBA’s Office of Advocacy drills down even further into the issue of diversity in entrepreneurship. Their 2016 report (which relied upon 2012 census figures) found that:
- Nationwide, 29 percent of businesses are majority-owned by minorities, and this share is quickly increasing
- In 2012, 8.0 million minority-owned businesses contributed $1.38 trillion in revenue and 7.2 million jobs to the economy
- From 2007 to 2012, the Black/African American population increased by six percent, but their business ownership increased by an impressive 34 percent
- The Hispanic population increased by 17 percent while Hispanic-owned businesses increased by 46 percent
Since 2006, International Franchise Association (IFA) has maintained a DiversityFran initiative to foster the success of diversity in franchising. According to their official website, DiversityFran is a franchisee education and recruitment program designed to assist IFA members in reaching emerging markets and increasing diversity while educating diverse prospective franchisees about opportunities in franchising.
The world of entrepreneurship and franchising continues to see an influx of diverse business owners ready to take the reins of their future. And the outreach that the IFA and other noteworthy organizations such as VetFran do to accommodate these diversity initiatives is commendable.
FranNet understands that there is still much work to be done, and we understand that people from all walks of life are welcome to nourish their own entrepreneurial dreams. Just consider us a facilitator. Because there’s nothing we enjoy more than helping an entrepreneur turn that proverbial corner and become a business owner.
If this is you, let’s get together and discuss.
Let’s chat! There’s a local FranNet consultant right in your market who knows that market inside and out – knows the personality of the market – knows the competitive landscape. FranNet has a great track record of assisting individuals on their path to entrepreneurship, and one of our franchise experts would love to provide you with guidance free of charge. Sound like something you might be interested in? Get started here and find your local consultant right now!