Entrepreneurship using the corporate firm to pursue the American Dream

Entrepreneurship Using the Corporate Firm to Pursue the American Dream
Name:
Instructor:
Abstract
This paper looks into entrepreneurship which is undertaken as means through the ethnic minorities can achieve the American dream. The minority businesses have been classified as those businesses whose majority of shareholder comes from disadvantaged groups either economically or socially. The disadvantaged business group comprises of small business enterprises, women-owned business, and businesses owned by other minority ethnic groups. Various forms of business are undertaken with the aim of generating returns to the entrepreneurs. The entrepreneur may conduct business in the form of a sole proprietor, partnership or a corporate firm. This report seeks to look into the financial management goals as well as the need for supplier diversity. Various organizations encourage business diversity, and the reasons for engaging in diverse business are also addressed in the report. Organizations such as billion-dollar roundtable, NMSDC, WBENC have been at the forefront in fighting for women and minority-owned businesses. It is clear that the various forms of businesses owned by the ethnic minorities have contributed significantly to the growth of the economy.
Introduction
Ethnic minorities in America come from different parts of the world for various reasons. Some of the ethnic minorities in America include the Asians, Hispanics, and Koreans among others. Some of the immigrants have ventured into businesses which have become very successful.

The businesses owned by the minorities have contributed significantly to economic growth and creation of employment. Entrepreneurship through the various forms of businesses has played a key role in making the ethnic minorities become important players in the economic growth of the country. However, the entrepreneurs have faced various challenges in the course of undertaking their businesses. America has classified those people who are economically and socially disadvantaged and running businesses as being minority business entrepreneurs. Those people classified as minorities include business enterprises that are owned by women, veteran business enterprises, as the disabled business owners. These categories of business owners are those who are disadvantaged in one way or another and need to be supported to achieve their goals.
Organizations who advocate for diverse businesses
NMDSC
The national minority supplier development council has its headquarters in New York. The organization has some regional affiliate councils which are spread throughout the country. The council was created in 1972 and has been at the forefront in linking minority-owned businesses with corporate America. Its members comprise over 150000 minority-owned businesses and over 3000 corporate members. They provide business certification and opportunities for business development. It has a corporate plus program in which members are the minority business enterprises. The program seeks to recognize the minority businesses national capability and enable them to expand (Certification et al., 2018).
WBENC
Women-owned businesses are certified by the WBENC which is the women enterprise national council. It leads in advocating for business owners and entrepreneurs who are women. The firm believes in diversity and seeks to promote innovation, enhance partnership resulting in propelling the economy. They provide certification standards to women business owners and other tools that result in their business success. The organization core goals include certification, opportunities, resources, and engagement amongst the various stakeholders (“About WBENC”, 2018).
The billion-dollar roundtable
The organization was established in 2001. The role of the organization is recognizing and celebrating firms that spend about $1bilion with suppliers from minority and women-owned entities. The organization has a role in promoting the best supply chain practices and excellence in diversity. They encourage entities to grow their relationship with suppliers as well as increasing their spending levels (“Supplier Diversity | United States | Billion Dollar Roundtable”, 2018).
Entrepreneurship
The government is one of the largest employers worldwide. However, the employment opportunities in government offices are not enough to absorb everyone who is looking for a job. For this reason, the government has been encouraging its citizens to establish their businesses with the aim of reducing unemployment thereby promoting entrepreneurship. Entrepreneurship is the process of generating business ideas and putting the ideas into a business entity. The entrepreneur generates business ideas in which he or she may create a product or service. Establishing a business requires one to have a business idea, people to implement the idea, the process of idea implementation and funds to develop the idea. An invention of new technology could be a business idea. Employees and advisors may be employed by the entrepreneur to support the business idea. The main drivers of entrepreneurship include control where one wants to be his boss, ambition in which entrepreneurs want to be pioneers by starting from scratch and for financial purpose where they intend to earn more money. In considering the kind of business to establish one considers his interest, background and experiences, funds available, network and connections and unmet market needs among others. Entrepreneurial activities may be undertaken in the form of a corporate entity, sole proprietor or a partnership (Duermyer, R. (n.d.). Forms of business
Sole proprietorship
This kind of business is started and run by one person who may be assisted by family members. A sole proprietor can make a decision quickly as compared to another form of business. There are very few legal requirements in establishing this form of business and taxes are computed at the owner’s income tax rate. However, this form of business suffers from several setbacks. The owner and the business are inseparable hence unlimited liability. The life of the business is dependent on the life of the owner. It is also difficult to raise a large amount of capital (“Types of business structures”, 2018).
Partnership
This form of business arises when two or more partners join hands to conduct the business operation and share profits generated among themselves. Articles of association are prepared as contract evidence of this kind of business. It is easy to create a partnership as compared to a creation of the corporation. The disadvantages of this form of business include the limited life of business, difficulty in transferring ownership and raising capital. (“Types of business structures”, 2018).
Corporations
This is a legal business entity which is considered as distinct from the members. Articles of incorporation are prepared as evidence of a corporation’s existence which shows the rights of the members. Corporations have unlimited life and it is easy to transfer ownership. Ownerships are forms of stock which can easily be sold or bought. The financial obligation of the firm does not extend to personal properties of the owners and is only covered by the assets of the firm (“Types of business structures”, 2018).
Goals of financial management
The goals of a firm are the targets n which the performance is measured against. The goals may be classified as financial or nonfinancial goals. The firm’s decision makers use the goals as a reference point. The major goals include wealth maximization, profit maximization and return maximization, increasing market share. Other goals include price stabilization, achieving the return on investment, market maintaining and survival of the organization among others. Financial management considers maximization of shareholders wealth as the most essential financial management goal achieved through the valuation approach. Financial managers do not only consider the profitability of an investment but also other issues such as risk, the timing of the cash inflows among others. The impacts all these factors on the company’s value is what the financial manager of a company considers. As firms work hard to maximize shareholders wealth they need to be socially responsible. Financial managers consider the welfare of the society by offering employment and other social services to the community. Social responsibility goal may sometimes conflict with the wealth maximization goal. Product pricing, product safety, and salary distribution are some of the issues leading to conflict between these two goals. Businesses are established with the owners seeking to achieve a certain return on their investment. Financial managers have to consider this goal as they undertake investment decisions (“Goals of Financial Management – Financial Management – Management Notes”, 2018).
Supplier Diversity
One of the major stakeholders of a business entity is the suppliers. Businesses are facing stiff competition calling for the undertaking of business strategies to remain competitive. Supplier diversity is one of the business strategies in which a business entity that is need of procurement of goods and services has a diverse supplier base. The diversity of supply chain enhances inclusion of various diverse groups’ n procurement process of an organization. Research indicates that supplier diversity has contributed significantly to increase profits and reduction in procurement costs. Major forms of diverse businesses include the women business enterprise, small business enterprise among others (“Corporate Diversification Strategies”, 2018).
Why organizations use diverse businesses
Supplier diversity benefits an organization in various ways. Goods and services can be procured through multiple channels. Supplier diversity results in promotion of innovation through entry of new products and services. There is an increase in competition between the firm current and potential suppliers regarding prices and services. The firm is able to take advantage of opportunities for expansion of business due to the ever-changing customer needs. Supplier diversity indicates a firm’s commitment to conducting business in various diverse markets. Diversification of suppliers enables economic growth of a country, thereby benefiting all communities including the minority. There are challenges that diverse businesses face. These challenges include startup and sustainability issues and access to funds. Statistics indicate that minority suppliers contributed to over $49 billion in revenue to the government. Shifts in demographics have provided opportunities in the United States for the diverse supplies as they to try to meet their needs. United census bureau indicates the majority-owned firms have been outpaced by the minority-owned business. Minority-owned businesses have also shown an increase in the level of employment over the years. It is clear that minority-owned business as well as supplier diversity (“Corporate Diversification Strategies”, 2018).
References
About WBENC. (2018). WBENC. Retrieved 12 February 2018, from
http://www.wbenc.org/about-wbenc/
Certification, M., Application, N., Services, S., Capital, A., (MBOD), M., & (SOTY), S. et al.
(2018). About NMSDC. SCMSDC. Retrieved 12 February 2018, from http://www.scmsdc.org/about-us/nmsdc/
Corporate Diversification Strategies. (2018). Smallbusiness.chron.com. Retrieved 12 February
2018, from http://smallbusiness.chron.com/corporate-diversification-strategies-61480.html
Duermyer, R. (n.d.). What is an Entrepreneur? Definition and Characteristics of an Entrepreneur. Retrieved February 12, 2018, from https://www.thebalance.com/entrepreneur-what-is-an-entrepreneur-1794303 Goals of Financial Management – Financial Management – Management Notes.
(2018). Management Notes. Retrieved 12 February 2018, from http://www.managementnote.com/goals-financial-management-financial-management/
Types of business structures. (2018). Bls.dor.wa.gov. Retrieved 12 February 2018, from
http://bls.dor.wa.gov/ownershipstructures.aspx
Supplier Diversity | United States | Billion Dollar Roundtable. (2018). Supplier Diversity | United
States | Billion Dollar Roundtable. Retrieved 12 February 2018, from https://www.billiondollarroundtable.org/