Revised City of South Bend Disparity Study Report

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City of South Bend Disoarity Study 2020 3. Analysis of Economy -Wide Race and Gender Disparities in the City's Market We explored the Census Bureau data relevant to how discrimination in the City's industry market and throughout the wider economy affects the ability of minorities and women to fairly and fully engage in the City's prime contract and subcontract opportunities. We analyzed the following data: Data from the Census Bureau's Survey of Business Owners indicated very large disparities between M/WBE firms and non-M/WBE firms when examining the sales of all firms, the sales of employer firms (firms that employ at least one worker), or the payroll of employer firms. Data from the Census Bureau's American Community Survey ("ACS") indicate that in most cases, Blacks, Hispanics, Native Americans, Asian/ Pacific Islanders, Others, and White women were underutilized relative to White men at the All Industries level. (Small numbers within the sample limited our ability to produce reliable estimates at the level of specific industry sectors). Controlling for other factors relevant to business outcomes, wages and business earnings were lower for these groups compared to White men. Data from the ACS further indicate that non - Whites and White women are less likely to form businesses compared to similarly situated White men. Results from the Federal Reserve Board and the U.S. Small Business Administration's Surveys of Small Business Finances. The main finding from these Surveys is that MBEs experience higher loan denial probabilities and pay higher interest rates than White -owned businesses, even after controlling for differences in credit worthiness and other factors. Blacks, Hispanics and Asians were more likely to be denied credit than Whites, even after controlling for firm characteristics like credit history, credit score and wealth. Blacks and Hispanics were also more likely to pay higher interest rates on the loans they did receive. Results from the U.S. Minority Business Development Agency Report, "Disparities in Capital Access Between Minority and Non -Minority Owned Businesses: The Troubling Reality of Capital Limitations Faced by MBEs". The report found that "low levels of wealth and liquidity constraints create a substantial barrier to entry for minority entrepreneurs". Minority-owned firms are less likely to receive loans than non -minority owned firms regardless of firm size; when minority-owned firms do receive financing, it is for less money and at a higher interest rate than non -minority owned firms regardless of the size of the firm; minority- owned firms are more likely to be denied loans; MBEs pay higher interest 01010 Colette Holt & Associates, All Rights Reserved.