Hispanic faced failure due to poor management programs

Hispanic
integration into the American business world serves as a great example of how
there were initial failures and struggles, but by analyzing the problems in
targeting Hispanic customers and with the aid of strategic planning efforts by
local governments allowed for a thriving commercial industry.  The targeting of minority groups regarding
commerce started around the 1960s but many of these business development
programs were flawed.  The failing
Minority Business Enterprise (MBEsj1 )1 assistance programs as
they were known needed 3 major changes to turn the tide according to Timothy
Bates who wrote a case study on MBE programs: (1)Targeting poor ghetto neighborhoods in an attempt to gain
customers should be decreased. (2) Targeting individuals with a low salary
should be decreased. (3) The indirect encouragement of fraud due to the
substandard management of the MBE programs.  Although these reform statements may seem
controversial, these changes were necessary for successful programs to develop
that could then address the poor Hispanic neighborhoods.  In a case study2 done in the 1990s, those
who invested in Hispanic minority businesses faced failure due to poor
management programs or poor neighborhoods. 
Therefore, in the late 1990s, in Orange County, Florida, the Hispanic
Business Initiative Fund (HBIF) was founded, what replaced the MBE programs.  Orange County is located in Central Florida,
a Hispanic-concentrated area.  This economic development program3
under the Orange County government was created to aid Hispanic businesses at a
local level in Orlando by providing strategic planning in targeting and gaining
Hispanic customers.  As minorities such
as African Americans and Hispanics are joining the political sphere, they have
represented their people’s greatest concern being high levels of unemployment
in this time period.  Evidently the HBIF
serves to administer to the need of job
generation4.
 In a survey conducted in 1988, Hispanic and Blacks
have close to 60% in negative financial assets in striking contrast to the 31%
for white Americans.  A significant
reason for the lack of social capital and assets is the language barrier for
Hispanic Americans to even enter the American business system.  The HBIF set goals such as providing
technical assistance and professional services for the success of investing in
and aiding Hispanic businesses.  Many
other organizations followed HBIF’s ways to develop their investment in Hispanic
business in the ethnic communities throughout the U.S.  Hispanic businesses increased by 70% from
1982 to sj2 1987.
5

1 Bates,
Timothy. “Why Do Minority Business Development Programs Generate so Little
Minority Business Development?” Economic Development Quarterly,
vol. 9, no. 1, 1995, pp. 3–14., doi:10.1177/089124249500900101. Accessed 21
Nov. 2017

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2 ARISTIGUETA, MARIA P., and JOSE I. FERNANDEZ. “HOMEGROWN ECONOMIC
DEVELOPMENT: IMPLEMENTING THE HISPANIC BUSINESS INITIATIVE FUND IN CENTRAL
FLORIDA.” Public Administration Quarterly, vol. 22, no. 3, 1998,
pp. 315–330. JSTOR, JSTOR, www.jstor.org/stable/40862323. Accessed 21 Nov. 2017

3
Local government administration in maintain businesses

4
The efforts taken by local governments or organizations to increase employment
opportunities

5 ARISTIGUETA, MARIA P., and JOSE I. FERNANDEZ. “HOMEGROWN
ECONOMIC DEVELOPMENT: IMPLEMENTING THE HISPANIC BUSINESS INITIATIVE FUND IN
CENTRAL FLORIDA.” Public Administration Quarterly, vol. 22, no. 3,
1998, pp. 315–330. JSTOR, JSTOR, www.jstor.org/stable/40862323.

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