Over the past few decades, the financial influence of minorities in the U.S. has been steadily rising. According to the 2010 Census, American citizens that identify as minorities – Asian, Hispanic, African-American, Pacific Islander and African Indians – make up 49 percent of the population. These groups are on the brink of creating a “new majority” in America, and sometime within the next 30 years minorities might no longer be considered minorities.
Minority groups made up 80 percent of the U.S.’s population growth between the previous and current census statistics, and this growth doesn’t seem to be fading. For businesses, this means that more minorities will become new customers, employees and perhaps even business owners and franchisees. Below, The Entrepreneur’s Source reviews the increase in population growth of minority groups and what this may mean for the franchising industry.
The Entrepreneur’s Source Reviews the Minority Attraction to Franchising
The franchise sector has slowly started to mirror this increase of minorities. The most recent U.S. Census demonstrated a 1.2 percentage increase in minority-owned franchise businesses – making up just about 20 percent of the franchise industry as a whole. Of this overall percentage, Asians owned 10.4 percent of all franchises, African-Americans own 4.9 and Hispanics own 5.2 percent, according to the International Franchise Association’s Franchised Business Ownership: By Minority and Gender Groups Report
Many franchise companies are actively recruiting minority franchisees to help diversify their businesses and the franchise industry as a whole – creating a blossoming effect industry-wide. Franchising has been an attractive career path for prospective minority entrepreneurs. Franchising offers these groups an chance to learn new skills, nurture and grow a business or even to obtain a new one.
Numerous franchise associations, like the IFA, have begun to develop and enact programs designed specifically for prospective minority entrepreneurs who are looking to enter the franchise industry. These goals have a variety of different goals, including educating minority entrepreneurs about franchise affordability and financing, education on emerging markets, providing informative publications and tools and more. Many resources also exist to aid prospective minority franchisees in the investment process, and can be evaluated here.
If you’re a minority and interested in learning more about investing in a franchise, contact an alternative career coach at The Entrepreneur’s Source today.