The National Association of Investment Companies says that investing in diversely-owned companies can be a major driver of economic recovery while at the same time helping to resolve age old socially-driven economic imbalances. NAIC says such companies, aided by equity funding, have an excellent chance of success. Although it did not go into specifics about them, two of the companies studied run large market broadcast operations, one aimed at Hispanics and the other using a multicultural approach.
NAIC’s thesis is that its investments produce extra bang for the buck since by targeting diverse communities, they infuse capital and jobs directly into areas most in need of it.
And NAIC claims success in investments made so far. It says the companies it studied enjoyed annual average job growth of 14% compared to the national average of 1%; 67% of new jobs went to minorities in the face of a 30% minority unemployment rate; revenue growth stood at 35% compared to a national average of 5%; and the company’s employees enjoyed better pay and health benefits.
“Our study makes a strong case that the federal government, private investors, minority businesses, large publicly traded corporations and others need to take bold steps to encourage investment in our emerging domestic markets if we are going to ensure that the United States economy recovers and continues to grow in the years and decades ahead,” said James Lowry of Boston Consulting Group.
NAIC is asking that steps are taken to stimulate further investment, and negative acts, like additional taxes on equity investment, be avoided.
RBR/TVBR observation: Fact: Minorities are underrepresented in the broadcast license database. Fact: There are many stations languishing on the sales block. Conclusion: If the cash can be found to help minorities acquire and succeed with some of these stations, it’s a good thing for almost all concerned. Except for this Unpleasant Reality: Sellers are going to have to accept the fact that stick values have greatly diminished.