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[Congressional Record Volume 141, Number 72 (Wednesday, May 3, 1995)]
[Extensions of Remarks]
[Pages E945-E946]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

                    A SALUTE TO SMALL BUSINESS WEEK

                                 ______

                           HON. KWEISI MFUME

                              of maryland

                    in the house of representatives

                         Wednesday, May 3, 1995
  Mr. MFUME. Mr. Speaker, I rise today to remind my colleagues, as well 
as the American public, that the week beginning April 30 is National 
Small Business Week, and I would like to take this opportunity to 
discuss small and minority-owned businesses and the role they play in 
our economy.
  Not all Americans realize how important small businesses are to our 
national economy. Although the definition of a small business is 
sometimes varied, the fact of the matter is that firms with less than 
100 employees account for more than 98 percent of the Nation's 
enterprises. Furthermore, between September 1991 and September 1992, 
jobs in small business dominated industries increased by 177,700 which 
helped to offset the 400,000 job decrease in industries dominated by 
large businesses.
  While nonminority men still own the lion's share of small businesses 
and still represent the largest number of sales, minority- and women-
owned businesses are increasing in size and number. Minority-owned 
businesses have increased from approximately 380,000 in 1969 to 1.5 
million today. Despite this increase, however, minorities are still not 
fairly represented in small business ownership; while minorities 
comprise nearly 20 percent of the total U.S. population, they own less 
than 9 pecent of American businesses.
  In addition to playing an important role in the national economy, 
minority- and women-owned businesses also tend to play important roles 
in their communities. In many poor, urban communities, minority-owned 
businesses are often the only commercial establishments available. 
Furthermore, as was demonstrated in a recent Department of labor study, 
minority- and women-owned businesses are more likely to hire minorities 
and women than are businesses owned by nonminority men. In short, 
minority- and women-owned 
[[Page E946]] businesses fill voids in their communities and in the 
labor market that otherwise may be left empty.
  Despite the importance of small and minority-owned businesses, they 
nevertheless face numerous problems. The primary obstacle facing most 
small businesses, regardless of their ownership, is the lack of 
capital. Despite numerous creative programs at the Federal, State, and 
local levels, the fact remains that capital is hard to come by.
  This is especially true of minority- and women-owned businesses. In 
addition to the fact that minorities and women often lack the business 
connections and record of experience that has been so useful to many 
nonminority men in establishing their businesses, discrimination 
unfortunately also remains a problem. Further, many banks or lending 
institutions are hesitant to lend capital to minorities or women, 
especially if their business is going to be based in a poor, inner-city 
neighborhood.
  As a member of the Small Business Committee as well as the Banking 
and Financial Service Committee, I am committed to do what I can to see 
that small and minority-owned businesses are provided with the tools 
necessary to succeed. Small and specifically, minority-owned businesses 
are too important to our national economy and our communities to allow 
them to falter. As we salute Small Business Week, I hope we will move 
forward with an agenda that supports the growth and development of 
small and minority-owned businesses.

                          ____________________
```