Can companies that specialize in selling to other businesses find legitimate opportunities related to cultural diversity and ethnic markets?
The question itself indicates a subtle ethnic bias that most white business people can’t see. But while white business owners may suffer from an ethnic blind spot, minority-owned businesses have more to do to bring attention the opportunities they represent.
First, for traditional B2B companies (usually owned and operated by whites), understanding the diversity of the American business culture as well as the consumer culture can yield a fresh perspective and new opportunities in a variety of areas:
Employment – Minority groups today account for 25% of the US population. That number will more than double over the next generation. The ethnic shift is likely to be even more pronounced among those people of employable age.
Employers who recognize this trend and work to develop corporate cultures that are more open and accessible to people of various ethnicities will be positioned to review and select from a significantly larger talent pool of job applicants. An additional benefit to such an employer would be the positive “word of mouth” within various ethnic communities – resulting in a likely reduction in employee recruiting costs.
Client Relations – Just as it is likely most B2B companies’ own employment base will change over the next generation, it is fair to assume the employment profile of their clients’ will change over time as well. The ethnic/cultural background of your key client contacts may necessitate a change in your company’s approach to cultural diversity.
Growing and Start-Up Businesses – Today, ethnic businesses are growing faster and increasing spending more quickly than the national average for all businesses. Minority start-ups outnumber white start-ups by a ratio of nearly 2:1. Sales for minority businesses are growing at a dynamic rate of nearly 24% per year.
Healthcare and Related Markets – The health needs of some minority groups are more pronounced in some areas (e.g. Hispanics and the incidence of diabetes, African-Americans and the incidence of heart disease). While these tendencies have been identified by several drug and device manufacturers, there are several opportunities for companies who produce goods that support the lifestyle changes that go along with treatment. Food companies, financial service companies, technology companies, etc. can all benefit from getting to know and understand the needs of these markets in greater detail in order to stimulate more sales and product use.
Pull-Through Opportunities – Identifying cultural opportunities in the end-user market can create new business opportunities with existing customers.
For minority-owned businesses, there are a few significant challenges they need to overcome in order to break through the “checkmark” mentality so many white-owned businesses have when it comes to accommodating ethnic markets and minority-owned businesses.
Awareness – Opportunities in minority and ethnic markets need to be brought
forward and explained to companies that have traditionally operated in “the mainstream.” And with the mainstream, nothing succeeds like success. A coordinated push of positive examples and subsequent opportunities will get noticed by the more savvy entrepreneurs.
Education – Many white business owners and managers are intimidated by cultures they don’t understand. The only way to overcome those fears is to spend the time required to educate and inform them.
Partnership – True partnership is a two-way street. Inter-racial business relationships need to start out slow, allowing the white partner to catch on and catch up. Both parties need to make their intentions clear and to put matters of difference on the table so they can be addressed. A clear understanding of the give and take of the business relationship will help make a stronger, working partnership when things finally hit their stride.
Finally, it’s up to all of us to recognize and celebrate the success stories. We all need to do what we can to commend businesses that find new ways to work together and benefit from the partnership. These stories will be of interest to the media and to the public because as the population continues to diversify (ethnically), the media will be searching for ways to entertain and inform that new public.
In the B2B segment, there is a distinct opportunity to lead consumer trends and benefit both strategically and economically as a result.
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