Cathy Hughes teams up to help entrepreneurs

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Cathy Hughes teams up to help entrepreneurs

By Qcity Staff – May 18, 2011

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Media mogul Cathy Hughes founded Radio One over thirty years ago with the help of a Small Business Administration loan. Today, Hughes is teaming up with the SBA to help other minorities achieve their entrepreneurial dreams, reports Theroot.com.

In a 2008 study co-sponsored by Radio One, the majority of participants between the ages of 18 and 30 said they wanted to be entrepreneurs.

"The hip-hop generation believes in education, but not ... that you need a good education in order to get a good job," Hughes is quoted as saying at a recent White House reporters' roundtable. "They want a good education in order to work for themselves and to start their own businesses."

Speaking as chair of the SBA’s newly created Council on Underserved Communities, Hughes says that the latest initiatives from the agency are designed to help burgeoning minority entrepreneurs and strengthen businesses in underserved communities.

According to a 2011 U.S. Census Bureau report, from 2002 to 2007, black-owned businesses grew at a rate of 60.6 percent -- more than three times the national average.

Despite the growth, African Americans still face serious obstacles to accessing capital. Studies show black-owned businesses are more likely to be denied loans, but it’s not just a black thing. In the current economy, banks are slower to loan to anybody.

Arguing that many aspiring entrepreneurs also don't have the know-how to successfully start a company, Hughes stressed that the SBA is more than just a loan agency; it also offers counseling and technical assistance.

"It's one thing to want to go into business, but that doesn't mean that you know how to run a business," Hughes said. "So often, there are services and programs available at the SBA that the individuals don't even know exist."