The Minority Business Development Agency: Making Minority-Owned Businesses Great

The Minority Business Development Agency: Making Minority-Owned Businesses Great

by December 26, 2017

By 2044, the Nation’s prosperity will rely even more on minority-owned businesses, the fastest growing segment of the population.  Entrepreneurship is a sure pathway to wealth creation and a thriving national economy.  Today, U.S. minority-owned businesses represent 29% of all firms but only 11% have paid employees.  If MBEs were to obtain entrepreneurial parity, the U.S. economy would realize 13 million more jobs.

Minority-Owned Businesses:

Building Prosperity for American Families

  • Create a new generation of minority-owned businesses with $100M in annual revenue to generate more jobs and help grow the U.S. economy through targeted programs and services.
  • Increase wealth creationthat secures personal and family well-being, reduces dependence on government resources, and contributes to overall economic vitality.
  • Cultivate successful minority-owned businesses to foster economic activity in local communitiesand increase utilization of community benefits, such as transportation, infrastructure, housing and quality education.

Expanding Economic Investments

  • MBDA secures an annual average of $5.4B worth of contracts and financial investmentin minority-owned businesses, increasing the number of businesses with revenues that exceed $1M and create jobs for Americans.
  • MBDA leverages public-private partnerships whereby the private sector contributes nearly $5.5M annually in non-federal investments to the national network of MBDA programs.
  • Minority-owned businesses expand and diversify the tax base creating sustainable communities with a steady rate of economic growth.

Strengthening America’s Competitiveness

  • Position minority-owned businesses to perform in high growth industries, emerging markets, and corporate supply chains.
  • Reduce the trade deficit by leveraging the unique assets of minority-owned businesses in global markets.
  • Commission research reports and business analytics that demonstrates the minority business community as a vibrant and growing business sector.

Return on Investment: For every federal $1 spent MBDA gets one of the highest returns for business assistance in the Federal Government.  Over the past 10 years the Agency’s programs and services have secured more than $40B in contracts and capital, with accelerated performance averages and returns on investment.

Unique Challenges Faced by Minority Firms

Overall, minority-owned businesses are smaller in size and scale than their non-minority counterparts.  The gap in combined gross receipts is 10:1, with only 2% of minority businesses generating gross receipts of more than $1M and only 11% of minority-owned businesses with paid employees.


  • Minority firms are more likely to be denied loans at a rate nearly 3x’s higher than non-minority businesses
  • Minority firms are likely to pay higher interest rates; on average 7.8% while non-minority businesses pay on average 6.4%
  • Minority firms are less likely to receive loans; and when approved, receive lower loan amounts.


  • Minority firms secure a lower number and dollar amount of contracts in proportion to the number of available minority businesses in the relevant market.
  • Pervasive barriers cited in contracting disparities studies include:
    • access to capital;
    • large contract sizes;
    • network access; and
    • marketplace inequities.

MBDA – The Solution Provider

The only Federal Government agency solely dedicated to the growth and global competiveness of minority business enterprise.

minority-owned businesses

minority-owned businesses


  • Provides access to market-based financing solutions.
  • Facilitates teaming arrangements and mergers and acquisitions.
  • Partners with private-sector Fortune 500 firms to provide access to global supply chains.
  • Transitions minority 8(a) [SBA program] graduate firms to the private sector.
  • Develops policy recommendations that address minority business inequities

This collection of links and resources will minority-owned businesses learn more about MBDA.

If you need additional information, please contact us at 202-482-6272 

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