Report Shows Small Businesses Struggling
A recent National Small Business Association (NSBA) report shows a small business community struggling to stay afloat in a dismal economic climate. In the “2009 Mid-Year Economic Report,†released this week, 94% of small businesses said the national economy today is worse off than five years ago, and those who think the economy is doing much worse jumped to 75% in July 2009.
“Nearly half of small businesses, up from a third six months ago, are not confident about the future of their own business,” said Todd O. McCracken, NSBA president. “The ongoing erosion of confidence from traditionally up-beat entrepreneurs is a wakeup call to lawmakers that small business may not be able to tread water much longer.”
Included in the report are indications of the difficulty small businesses are facing in reference to three key factors — revenues, profits, and employee size — which all declined between December 2008 and July 2009. Revenues and profits took an even larger hit with 62% experiencing a decrease in revenues, and 66% reporting a decrease in profits. The number of small businesses hiring new employees in the past 12 months dropped from 18% in December to 9% in July.
Access to capital continues to be a key issue, with 80% of small business owners negatively impacted by the credit crunch — up from 67% one year ago. More than 60% reported worsening terms on their credit cards and 38% were subject to a decrease on their lines of credit or credit cards.
“We’re struggling. Despite several economic stimulus packages and lots of talk, only 3% of small businesses reported a positive impact of the stimulus bills on their business,” stated Keith Ashmus, NSBA chair and co-founding partner at Cleveland, Ohio-based Frantz Ward L.L.P. “America’s small businesses need and deserve better.”
The NSBA is a small business advocacy organization that reaches more than 150,000 small firms nationwide.
–Janell Hazelwood
Percentage of Blacks on Fortune 500 Boards Decreases
Despite the fact that more African Americans are seated on the board of directors at Fortune 500 companies, the percentage of blacks on boards has decreased since 2004, reports a new study.
The number of blacks on boards increased from 255 in 2004 to 278 in 2008, according to the Executive Leadership Council‘s “Census of African Americans on Boards of Directors of Fortune 500 Companies.†Yet, 39% of Fortune 500 companies have no African American directors.
“Businesses understand the economic benefits of diversity. They talk about it, but not all of them have a plan for achieving it,” said Carl Brooks, president and CEO of The Executive Leadership Council, a networking and leadership development forum for C-suite level executives. “We expect this report to spur meaningful progress in this important area of management and governance.â€
Since 2004, the total number of board seats declined by 16 to 5,556, but the number of African American board seats declined by 36. Additionally, the mix of Fortune 500 companies has changed with some companies moving off of the list and other, previously smaller organizations, moving onto it.
Of the 278 African American board directors, 67 of them serve on two corporate boards, and 28 serve on three or more. This means that some black board directors are doing double and triple duty on the same boards, while other companies aren’t tapping any blacks at all.
The results of the study also show that the higher a company ranks on the Fortune 500 list, the more likely it is to have African Americans on its board of directors.
The report is the third report of its kind commissioned by the ELC.
–Marcia A. Wade
Black Reproductive Health Declining
Reproductive health in the United States is declining as human exposure to dangerous chemicals rises, according to data compiled by the Center for American Progress (CAP), in July. The incidences of fertility problems, preterm births, and low birth rates are alarmingly high among African Americans, says Reece Rushing, the author of the report.
More than 18% of black babies were born preterm in 2004, surpassing the 12% national average. While a confluence of factors including a dearth of adequate healthcare coverage and poor nutrition are suspected to play a role in the higher than average rates among blacks, chemical exposure is also thought to be a factor.
“Very low birth weight†— under 3.4 pounds — neared 3.5% in 2004, up from just below 2.5% in the 1970s. The national average stood at 1.5% in 2004, half the rate of blacks.
As reproductive health has declined, chemical production has increased dramatically, the report says. The number of chemicals registered for commercial use now stands at 80,000 –a 30% increase since 1979.
“We have more fertility problems, there’s more birth defects
we have more miscarriages, more preterm births, and we don’t know exactly why it’s happening,†says Rushing, director of regulatory and information policy at CAP. “We do know we’re being exposed to more chemicals than ever before, and we do know these chemicals are dangerous to reproductive health, and it seems to be these chemicals are taking a toll.â€Exposure to these chemicals is usually though contaminated food, household products and cosmetics. The data reveals that poor people and minorities are generally exposed to chemicals at higher levels than whites.
The prospects for reversing the downturn in reproductive health appear to be brightening, Rushing says. Last year Congress passed legislation that requires pre-market testing of children’s products sold in the United States. Rushing said there will likely be a renewed push for the Kids Safe Chemical Act, which would help reduce human exposure to dangerous chemicals, which in turn promises to lift reproductive health.
The report is based on a compilation of medical and education studies from various organizations including the Center for Disease Control, U.S. Department of Education, and National Child Survey which look at rates from the 1970s to 2005.
— Renita Burns