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Congressional Black Caucus Foundation and GlaxoSmithKline Announce Supplier Business Initiative Study Results
Date:9/26/2007

eting the study, titled "Increasing the Capacity of the Nation's Small and Disadvantaged Businesses." They set out to measure the impact of the SDB program on minority business performance and examine how the personal net worth ceiling has affected SDB capacity. They also assessed the impact of the SDB program on national output and employment.

The study's results outline the barriers that small disadvantaged businesses face in pursing success in today's environment, including the ability to build capacity and satisfy corporate demand. The goals of the research findings are to close the gap and help minority businesses achieve the size, scale and capabilities necessary for global competition.

"With greater capacity, SDBs are able to operate more successfully in the public and private sectors," said Elsie L. Scott, Ph.D., CBCF's president and chief executive officer. "Their greater success expands overall economic output and generates jobs, income and wealth in the economy and especially in underserved communities."

The results reveal the following:

-- Small disadvantaged businesses still experienced an annual disparity in

revenue of $900,000 in comparison to non-minority owned small business

concerns with similar characteristics.

-- The $750,000 personal net worth ceiling of the SDB program has not been

adjusted for inflation in nine years. Therefore, the current real value

of the ceiling is $558,070.

-- The capacity of small disadvantaged businesses and the personal net

worth of their owners are closely related.

-- A personal net worth ceiling that is set too low causes other economic

hardships.

"GlaxoSmithKline and the Congressional Black Caucus Foundation partnered together to improve ways to help small disadvantaged businesses succeed among the competition," said Chris Viehbacher, president of U.S. Pharmaceuticals for GSK. "This study shows the success of tha
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SOURCE GlaxoSmithKline
Copyright©2007 PR Newswire.
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