Lack of access to capital hurts black businesses

Many black-owned business have trouble obtaining the financing to grow. And they can't find enough qualified employees.  The phenomenal rise in the number black entrepreneurs has long been a hot business topic.The latest Census data ,for example, showed a 26 percent rise between 1992 and 1997 and the 2002 numbers are expected to show a continued increase when they are released next year. But that surging growth belies the difficulties African-American business owners grapple with in trying to hold onto their American dream. "Access to capital is No. 1 on the list," said Harry C. Alford, president of the National Black Chamber of Commerce in Washington. And the access imbalance is particularly keen on the venture capital side. Though minorities make up 30 percent of the U.S. population, less than 2 percent of venture funds are invested in their businesses, said Robert L. Greene, president of the National Association of Investment Cos., a Washington, D.C. trade Association for companies that invest in minority businesses."They don't have personal contacts to get their deals exposed," he said, something his group is trying to change.  Many black firms also have trouble finding qualified workers, another issue that imperils their financial stability, according to a study released last week by the Philadelphia-area African American Chamber of Commerce. That study found that 40 percent of its members are experiencing difficulties in finding skilled employees.  Crawley said the shortage isn't confined to black business but "because such firms tend to be smaller and have lesser capital resources, the impact on them is greater." [more]