Last week, in Part I of Disparities in Access To Financial Capital, I address the problem many minority business are facing as reported by the U.S. Department of Commerce Minority Business Development Agency. This week I am addressing potential solutions to the problem by highlighting the various sources of capital available to small and minority-owned businesses. Next week we’ll focus on the requirements typically sought by lenders of borrowers and the local and national agencies and resources available to assist business owners with the process.

According to the MBDA’s report, if minority-owned firms would have reached parity with the representation of minorities in the U.S. population, these firms would have employed over 16.1 million workers, grossed over $2.5 trillion in receipts, and numbered 6.5 million firms. In other words, minority businesses in the U.S. aren’t as strong as they could be, and one of the main reasons is access to capital. We know that inadequate capital access is a problem for business across the board, whether minority-owned or not. But according to the report, “The latest nationally representative data on the financing of minority firms indicates large disparities in access to financial capital. Minority-owned businesses are found to pay higher interest rates on loans. They are also more likely to be denied credit, and are less likely to apply for loans because they fear their applications will be denied.” That’s a problem because today, when the strength of our nation’s economic productivity is more important than ever, the growth potential of minority-owned businesses is being hindered.

Information is as precious as gold. If you don’t believe me just look at how much money is spent on its dissemination through the internet, television, radio and print media on a daily basis. But if we truly live in an information age, why isn’t everybody cashing in on the bonanza? The answer is simple: because information obtains its worth when, where and how it is applied. It’s like earning a return on an investment. When you learn, you’re making a deposit into an investment account. To maximize your return on the investment, be sure you deposit into the right account by simply applying the information in a way that is relevant to achieving your goals.

What are the qualities of a good leader? This is one of the most important and enduring questions to occupy the minds of men and women since before the dawn of recorded history. From our prehistoric ancestors to you and me today, we look to our leaders for guidance, direction, balance, and even survival. Renowned French diplomat during the French Revolution, Charles Maurice de Talleyrand, wrote, “I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep.” Effective leaders affect outcomes. They rally their forces together under a common flag to accomplish what others might consider to be impossible. Whether you’re talking about a nation, a company, or a non-profit organization, the importance of an effective leader cannot be overstated.

Today marks the end of an era with the passing of one of the most beloved men of our business community, Armando Llorente, at the age of 91. Many people may not be aware of the extent of this man’s contributions to our community – and that’s exactly how he would want it – but in one way or another, directly or indirectly, we have all been touched by his generosity and unselfish spirit of service. Actually, his influence extends far beyond the realm of business, and I’m sure that much will be written about him locally in the coming days, but I think it’s appropriate to focus my reflection from a business perspective because Llorente devoted his entire life to mentoring some of the most successful businessmen and professionals, first in Cuba, then in Miami. Ironically, though, he himself was not a businessman in the traditional sense. Though he was the consummate professional, an excellent manager, and master negotiator, he worked for a different kind of company, La Compañía de Jesus. Fr. Armando Llorente S.J., was a Jesuit priest.