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DOCUMENT RESUME ED 072 274 VT 018 758 TITLE Minority Enterprise and Expanded Ownership: Blueprint for the 70s._ INSTITUTION President's Advisory Council on Minority Business Enterprise, Washington, D.C. PUB DATE Jun 71 NOTE 95p.. AVAILABLE FROM Superintendent of Documents, U.S.-Government Printing Office, Washington, D.C.-20402 pm 0300-0325; $1.00) EDRS PRICE MF-$0.65 HC,43.29 DESCRIPTORS *Business AdministrationvCapital; Career OppOrtunities; Economic Opportunities; *Equalization Aid; Federal Aid; *Leadership Training; *Management Development; *Minority Groups; National Programs; Resource Allocations; Technical Assistance ABSTRACT Although minority-groups make up 17 percent of the population, they control only a small fraction of-the productive resources of the nation. The President's Advisory Coundil on Minority Butiness Enterprise was-created to develop a national prograOrto define minority enterprise goals and to design-strategies for attaining them. This-report presents the Council task forces' findings and recommendations for broadening= minority business opportunities, expanding capital resource ownership, and providing business training, management developments And technical assistance.. (MF) 1 1,11o'r r,, rr,rttrrt tar 'Artt,t t'rrttikeif,"Ittll'8"V'W.0%4Ao''MAOF ,04 r\ " 4.,. ' U P DEPARTMENT OF HEALTH. DUCATION & WELFARE OFFICE OF EDUCATION THIS DOCUMENT HAS SEEN REPRO. 'DUCED EXACTLY AS RECEIVED FROM THE PERSON OR ORGANIZATION ORIG- INATING IT. POINTS OF VIEW OR OPIN IONS STATED DO NOT NECESSARILY 'REPRESENT OFFICIAL OFFICE OF EDU CATION POSITION OR POLICY. MINORITY ENTERPRISE AND EXPANDED OWNERSHIP: BLUEPRINT FOR THE Submitted to President Richard Nixon and Secretary of Commerce Maurice H. Stans by The President's Advisory Council on Minority Business Enterprise JUNE 1971 PRESIDENT'S ADVISORY COUNCIL ON MINORITY BUSINESS ENTERPRISE 923 - 15TIT STRUT, N.W. WASHINGTON, D.C.20005 SAM WYLY (202) 9674922 Chairman ALAN STEELMAN Executive Director BaNKELEY C. &um Vice Chairman Inasom Ihranizz Deputy Director MEMBERS February 22, 1971 Junius L. Allison Deal Amax .Mn A. Barr John Belinda Herman W. Bevis Robert Boyer Darwin W. Bolden Rewn Brinkley Robert A. Brooks Looter A. Burcham B erkeley G. Burrell Vidal Cantu John Cardenas Rafael Carrion, Jr. Manuel Casiano John H. Clay Robert 0. Dehlendorf, 11 C. L. Dellums Ben Fernandez Robert J. Fluor To President Nixon and Secretary Stans: Bayard Friedman Jose Carlos Gomez Riehard Gonzalez Joseph W. Goodloe Donald M. Graham Garland C. Guice W. P. Gullandor I have the honor to transmit the final report of the Walter A. Hags. Jr. Dr. David B. Hertz B ishop Francis T. Murillo John H. Johnson Advisory Council on Minority Business Enterprise Samuel C. Johnson P aul A. Johnston Jenkln Lloyd Jones Robert P. Kohn Brady Keys containing its findings, conclusions, and recommendations. Peter Mewl/ Joe W. Kirven Jewel Stradlord Lefontant John Lawler David Lester .1. Willard Marriott, Jr. Rev. Arthur Marshall, Jr. By direction of the Council Alex Marcum Albert C. Moyer G. William Miller Clinton Morrison H. C. (Chad) McClellan Slaw billII Robert Bruce Mamie Donald S. McNaugliton A. C. Nielsen, Jr. H. Bruce Palmer Sam Wyly, Chairman Thomas A. Pappas H. Lawrence Parker Lawrence S. Phillips Dr. Sierett R. Rhoades James M. Recto Rodman Rockefeller Charles G. Rodman Juan Rodriquez de Jesus Edward B. Rust Nicolas M. Salm) George Sandoval John Scontsas Herbert R. Silverman John Gerald Simon Donald S. Slaiman Donald E. Snood, Jr W. Clamant Stone Robert D. Stuart. Jr. Rev. Leon H. Sullivan Mitchell Sviridoff Jesse Terry William S. Thompson Otis Thorpe Richard Tullis Hector Vasquez Nan:: Volga Robert Weingarten Dr. Wilford L, White Kendrick R. Wilson. Jr. Arthur M. Wood Sam Wyly Foreword The Advisory Councilon Minority Business Enterprise was createdon March 5, 1969, by President Nixon, in Executive order 11458. It has soughtto develop a blueprint for a national strategy that would ensure that minorities assume a significant role in developing,owning, and managing viable businesses during the decade of the seventies. Sixty-threepersons, representing various minority communities and the majority business and financial communities,were initially appointed to the Council. The member- ship was raised to eighty-five in 1970. During the past year, the Council,' under the leadership of its chairman, Sam Wyly, assisted byvice- chairman Berkeley Burrell, and its staff have consultedwith hundreds of minority businessmen,eco- nomic development leaders, economists, governmentalofficials, and corporate and financial leaders. The staff's experience and research, together withthe collective knowledge and practicalexperience of the Council members, have provideda valuable input to this report. At the outset, the Council divided itself into five task forces: National Strategies and Goals;Business Opportunities; Expanded Participation; Finance; and Management and TechnicalAssistance. Each task forcewas assigned a chairman, from among the Council membership, and an associate director, withstaff coordinating responsibility. The Task Force on National Strategies andGoals was directed to define minority enterprise goalsfor the nation as a whole, over the next decade, and todesign appropriate strategies for attainingthese goals. It has sought to formulatea more effective delivery system, both in Washington and at the local level, for getting availableresources to minority enterprises. The Task Force on Business Opportunities addresseditself to the issue of broadening thespectrum of business opportunity. It has soughtout situations which may offer new and/or expanding marketsto minority entrepreneurs, proposinga number of methods through which minority entrepreneurs could profitably develop such business opportunities. Recognizing that the great majority of Americans donot aspire to become entrepreneurs, the Task Force on Expanded Participationwas directed to explore additional ways of involving minorities in capital resource ownership. Such mechanismsas savings and loan associations, employee stock partici- pation plans, credit unions, communityinvestment groups, and community development corporations have been studied and evaluated in thiscontext. The Task Force on Finance has examinedmeans of facilitating the flow of public and private capital in the development of minority-owned businesses. Federal credit guarantee mechanisms have beenstudied in an effort t" improve their effectiveness in funneling the flow of private capital to minorityenterprises. Ensuring the rapid growth of existingminority-owned financial institutions and encouragingthe rapid development of new financial institutionshave been significant concerns of this task force. Opportunities for formal business training and on-the-jobtraining have been areas of inquiry for the Task Force on Management and TechnicalAssistance. In addition to addressing itselfto the shortage of well-trained entrepreneurs andmanagers, this group has explored ways to supply management and technical assistance to minority enterprisesin order to meet specific or recurring business problems. The composite report consists of two major parts: a summary and recommendations of theCouncil's findings and an Appendix containing backgroundand supporting materials. Thesummary and recom- mendations section is divided into seven major sections: Framework for Action; Rationale fora Na- tional Minority Enterprise Effort; the Environment for Minority. Enterprise; LI:tailedRecommendations for Implementing a Successful MinorityEnterprise Program; as wellas a discussion of a workable form for a resource delivery system, at both federal and local levels. There is alsoa summary of the report findings and a section forcomments by individual Council members.. IV Council Members & Staff " Allison, Junius L. Burrell, Berkeley G. 4 Executive Director President National Legal Aid & Defenders Assn. National Business League Chicago, Illinois Washington, D.C. Arnaz, Desi Carrion, Rafael, Jr. President President Desi Arnaz Productions Banco Popular de Puerto Rico Delmar, California San Juan, Puerto Rico Barr, John A. Cantu, Vidal Dean, Grad. School of Management Executive Vice President Northwestern University City Service Furniture Corporation Chicago, Illinois Laredo, Texas Belindo, John Cardenas, John Director Secretary-Treasurer National Indian Leadership Training Louie's Specialties Work, Inc. AlbutAierque, New Mexico San Antonio, Texas Bevis, Herman W. Casiano, Manuel (The Honorable) (Retired Senior Partner) Administrator of Economic Development Administration Price, Waterhouse & Company Hato Rey, Puerto Rico New York, New York Clay, John H. Beyer, Robert Businessmen's Development Corp. Managing Partner Philadelphia, Pennsylvania Touche Ross & Company Dehlendorf, Robert 0., II New York, New York President Bolden, Darwin W. Arcata National Corp. Executive Director Menlo Park, California Interracial Council for Dellums, C. L. Business Opportunity (ICBO) International President New York, New York Brotherhood of Sleeping Car Porters Brinkley, Rawn Oakland, California Executive -Director Fernandez, Benjamin National Association of Accountants Chairman of the Board and President New York, New York National Economic Development Assoc. Brooks, Robert A. Los Angeles, California President Fluor, J. Robert Harbridge House Chairman of the Board Boston, Massachusetts Chief Executive Officer Burcham, Lester A. Fluor Corporation Chairman of the Board Los Angeles, California F. W. Woolworth Company Friedman, Bayard New