Is Worcester a Good Place for Minorities to Start a Business
Friday, April 01, 2016
Good cities to launch for minority entrepreneurs were determined by factors such as business climate, health of the local economy and access to small-business loans.
For Worcester, the challenges are steep.
Where Does Worcester Rank?
Worcester ranks 126 in the United States.
Some cities in New England score much better.
#17 Bridgeport-Stamford,CT
#31 Manchester-Nashua, NH
#40 Portland-South Portland, ME
#50 Boston-Cambridge, MA
#53 Norwich-New London, CT
#119 Hartford-West Hartford, CT
All the top cities share one important attribute: The employment rate in each recovered more strongly than that of the rest of the nation in the last three years. Unemployment in the top 10 cities averaged 4.7% from 2013 through 2015, compared with 6.2% nationally. Another common element of our top 10 cities: All ranked in the top 25% in terms of SBA loan amount per 100,000 residents. SBA-backed loans provide low-cost financing for small-business owners, according to NerdWallet.
In Worcester, one company standout in trying to foster minority business growth.
UMass Memorial is one Worcester-based organization with a dedicated program designed to engage minority businesses as vendors.
"Our Vendor Diversity Initiative was established to develop procurement opportunities at the University of Massachusetts Medical School (UMMS) for small, disadvantaged and minority-owned businesses. UMMS is committed to developing and sustaining relationships with a diverse group of suppliers..." UMMS said.
And, Councilman Tony Economou District 1 City Council has promoted opportunities to become a registered vendor for the City of Worcester, including promoting a Pre-Certification Workshop last October. The program was designed to give minority and women owned business owners more information on how to begin the certification process to apply as a Minority, Women and/or Disadvantaged Business Enterprise.
METHODOLOGY
NerdWallet analyzed 178 U.S. metropolitan areas, each with populations of 250,000 or more. Six metro areas without business or loan data were excluded.
Here’s how we calculated the overall score for each location:
Business climate, 55% of the overall score, is based on four metrics from the U.S. Census Bureau’s Survey of Business Owners:
Average revenue per minority-owned business is 15% of the score. A higher average contributed to a higher score.
Minority-owned businesses per 1,000 residents is 15% of the score. A higher proportion contributed to a higher score.
Growth in minority-owned businesses from 2007 to 2012 is 15% of the score. A higher growth rate contributed to a higher score.
Percentage of minority-owned businesses with paid employees is 10% of the score. A higher percentage contributed to a higher score.
Unemployment rate is 10% of the score. A lower rate contributed to a higher score.
Median household annual income for minorities is 5% of the score. A higher median income contributed to a higher score.
Median annual income of local minorities as a percentage of the annual income for the area is 5% of the score. A higher percentage contributed to a higher score.
Financing opportunities, 25% of the overall score, are based on two metrics from the Small Business Administration and the American Community Survey:
SBA-guaranteed loans per 100,000 residents are 15% of the score. A higher rate contributed to a higher score.
The average size of SBA-guaranteed loans is 10% of the score. Larger average loans contributed to a higher score.
Related Slideshow: 20 Ways To Support Small Businesses in Central MA
Grab Some Coffee
Grab a Snack
Shop for Dad
Shop for Mom
Shop for Someone Special
Shop for a Difficult Buy
Take a Break
Grab Some More Lunch
Even More Lunch!
Do Something Creative
Participate in and Event
Get Some Retail Therapy
Repair Your Shoes
Revitalize Your Space
Go Golfing
Get Ready For a Special Occassion
Relax Your Body and Mind
Grab a Drink
Feed Your Sweet Tooth
Watch the Game
Grab A Late Night Snack
Related Articles
- Warren and Brown Not Spending With MA Women- and Minority-Owned Businesses
- Worcester Chamber Kicks off Minority-Owned Business Roundtable
- Small Business Association to Provide Winter Weather Tips Via Webinar
- 25 Ways To Support Small Businesses in Central MA
- NEW: MA Earns D+ Grade for Small Business Friendliness
- ShopWoo Today to Help Worcester’s Small Businesses
- Smart Benefits: Fines for Small Business Premium Reimbursement Delayed
- Smart Benefits: Small Businesses Remain Those with 50 or Less Employees
- SBA is Accepting Nominations for 2016 Small Business Week Awards
- Guest MINDSETTER™ Mike Ricardi: Supporting Worcester’s Small Businesses Should Be Priority
- Worcester Gets an “F” for Small Business Friendliness
- Smart Benefits: Fines Now In Effect for Small Business Health Plan Reimbursements
- NEW: MA Awarded $720,000 for Small Business Exports
- Changes to Worcester’s Tax Classification Will Bury Small Businesses
- Senator Moore Boosting Small Businesses
- Mass Small Business Owners Plagued by High Costs
- NEW: Moore Named Friend of Small Business by NFIB
- NEW: This Weekend is “Small Business Weekend” in MA
- Smart Benefits: IRS Issues Final Regulation on Small Business Tax Credit
Follow us on Pinterest Google + Facebook Twitter See It Read It