For nearly 15 years, we have been the only Minnesota-based Small Business Investment Company (SBIC) that provides smaller amounts of equity type financing and management assistance to minority entrepreneurs. “Minority” includes those belonging to African American, Asian, Hispanic and Native American communities.

Minority-owned businesses are growing in number as the United States population continues to become increasingly diverse. Overall the population of the United States is projected to grow from 263 million in 1995 to 394 million in 2050. The minority population will account for nearly 90% of this increase (1). According to the U. S. Census, the Minnesota minority population increased by 53% compared to overall state's population growth of 11% over the last decade and is projected to continue growing at such a rate, more than doubling in population by 2030.

Minority entrepreneurs continue to be an underserved market by traditional financial service providers. Most minorities have difficulties in attracting capital from family and friends and at the national level only about 2% of equity funding is provided to minorities even though minorities currently make up 30% of the U.S. population.

Successful minority businesses have the potential to create wealth for their owners, generate jobs, and contribute to improving the community for us all. A Milestone Investment is the "drop" that initiates a "ripple effect" in minority communities. Through Milestone's financing and management assistance, minority business owners grow their businesses. With growth they hire people and with success, they give back to the community and become inspirational role models for others.

That "ripple effect" is strong enough to continue beyond the minority communities. Not only do we help finance minority businesses; Milestone lends management guidance, financial discipline, and helps connect those businesses to the economic and business mainstream. Repeatedly we see the positive results that Milestone clients achieve through their thriving businesses. And with 90% of our increasing population attributed to minorities, what impacts our minority communities does impact us all—Milestone believes that impact is what creates the ripple effect.

¹From the Emerging Minority Marketplace report prepared by the U.S. Department of Commerce Minority Business Development Agency.

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