THU AM News: Reports detail minority underrepresentation among state’s businesses; DOR report highlights projections for personal income, employment

January 9, 2025

— Black, Latino and Native American businesses remain underrepresented in Wisconsin’s economy, a series of UW-Madison reports show.

The university’s Community Economic Development program recently released the reports on Black, Latino, Asian, and Native-owned companies in the state, detailing their growth over time as well as persistent challenges for each minority group.

“Despite growth and success, business owners of color face key challenges, including access to financing, business locations, and anti-Asian racism stemming from the pandemic,” report authors wrote.

One report shows the number of Black-owned businesses in the state rose from 4,848 to 19,339 between 1997 and 2012, the highest growth rate of any racial or ethnic group. But as of 2019 — the latest year covered in the reports — Black companies made up 4.3% of the state’s business community, lower than the 6.44% of Wisconsin’s population that identifies as Black.

Similarly, the number of Latino-owned businesses in the state grew from 3,020 to 8,830 from 1997-2012. But these companies made up just 3.12% of the state’s businesses in 2019, well below the Latino/Hispanic population share of 7.09% for that year.

Meanwhile, Native-owned businesses saw “modest” growth over the 15-year study period, going from 2,338 to 3,115. These companies make up 0.84% of Wisconsin businesses, just below the population share of 0.94%.

Of the four groups analyzed in the reports, only Asian residents were represented at parity among the state’s businesses, authors found. From 1997 to 2012, the number of these companies rose from 3,752 to 9,848. The share of Asian-owned businesses in the state was at 2.94% in 2019, above the population share of 2.88%.

Each report includes a section detailing “key issues” for the group in question. One report shows trends for Black-owned companies in Wisconsin largely follow national trends, with Black entrepreneurs generally being underrepresented in business ownership, especially in sectors with high sales and growth potential.

“The concentration of Black-owned businesses in low sales and low-growth industries contributes to the disparities in firm size, revenue, and payroll receipts,” report authors note.

For Latinos in Wisconsin, businesses tend to be smaller and are far less likely to have employees, leading to greater profit disparities “since nonemployers tend to be less profitable” relative to employer businesses.

Report authors highlight the “uniqueness” of the Native business environment in Wisconsin, noting it’s largely driven by geography. More than half of the state’s Native American population lives in rural areas, largely on or near tribal lands.

“Given their large presence in many rural communities of the state, the social and economic health of certain areas are greatly influenced by the Native-owned businesses in the area,” authors wrote, adding “remoteness can stunt the performance and growth of rural businesses by limiting their customer base, potential employees or business partners.”

The report also notes remote locations can mean higher costs for transportation, infrastructure and maintenance.

In contrast, authors say Asian-owned businesses are “relatively successful” compared to other minority groups in Wisconsin, in both representation and sales. That’s attributed to higher rates of financial and social capital, higher education levels and other factors. Plus, Asian Americans tend to have higher levels of household wealth, making it easier for them to start a business.

Still, Asian business owners in the state face barriers to success as well, authors say. The report notes 69% of Asian entrepreneurs reported facing financial difficulties in operating their business in a 2019 survey, and were less likely to receive funding when applying for financing than white-owned firms.

See the reports.

— Wisconsin’s nominal personal income growth is projected at 5.2% for 2024, dipping to 4.1% in 2025 before reaching 4.4% in 2026, according to the state Department of Revenue.

The agency recently released its November 2024 economic forecast, which shows last year’s personal income growth is being driven by a 6% increase in wages and salaries, a 5.9% increase in supplements to wages and salaries and a 5.1% increase in personal transfer payments.

Meanwhile, total employment in Wisconsin is projected to increase 0.9% in 2024 after rising by 1.4% in 2023 and 2.8% in 2022. Report authors note “a similar pattern is observed nationwide,” with U.S. employment growth falling from 4.3% in 2022 to 2.3% in 2023 and 1.6% in 2024.

“Labor markets continue to expand, but growth is slowing, with clear signs of loosening emerging … This trend is expected to continue through 2025, supporting efforts to reduce inflation to 2%,” report authors wrote. “The 2025-2027 outlook anticipates minimal employment growth for both Wisconsin and the US.”

See the report.

— The number of Wisconsinites who have signed up to receive health care coverage through Affordable Care Act marketplaces has already exceeded last year’s record high with more than a week left to go, according to the latest federal figures.

The Centers for Medicare & Medicaid Services’ latest national snapshot shows 306,470 plan selections have been made in Wisconsin during the open enrollment period as of Jan. 4. This year’s open enrollment period continues through Jan. 15.

During the entirety of last year’s open enrollment period for HealthCare.gov, a total of 266,327 plan selections were made, marking a new record high at the time and a 20% increase over the previous record, according to a release from the state Office of the Commissioner of Insurance and Gov. Tony Evers.

At the national level, CMS reports 23.6 million consumers have selected coverage for 2025, including 3.2 million new consumers. That total exceeds last year’s “record-setting” open enrollment period in which 21.4 million people got coverage, the agency says.

See the latest CMS snapshot.

— The Lions Eye Bank of Wisconsin has launched a virtual reality app to teach people about visual impairment.

The nonprofit group, which aims to foster corneal donation and transplants, today announced the launch of the app, which was developed and donated by ophthalmologist Dr. Michael Ullman. It can be used on a smartphone or tablet, offering a “fully immersive educational experience” focused on visual challenges, such as corneal-related vision loss.

The app can be used by eye health specialists to help patients and their families better understand what it’s like to live with visual impairment, as well as training eye care teams, according to the announcement. It also has applications in the classroom, as educators can use it to teach students about “eye health, anatomy, and the social impact” of blindness, the nonprofit says.

Users can register in the app as cornea donors and donate to the Lions Eye Bank of Wisconsin, which says any funds raised will “directly support” its efforts to provide corneal donations and transplant services.

See details on how to download in the release.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

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— The WMC Foundation has named Wade Goodsell as its president.

Goodsell is also vice president of membership and partnerships for Wisconsin Manufacturers & Commerce, and previously worked at Baker Tilly and the Wisconsin Economic Development Corp.

WMC President and CEO Kurt Bauer calls Goodsell an “invaluable asset” to the organization.

“He has built the Foundation into a powerhouse of effective programming, research and education,” he said in a statement.

See the release.

— Business strategist Roxanne Baumann has launched Baumann Global LLC, offering export services, project consulting and more.

Baumann’s website touts her 30 years of experience in the manufacturing industry, having worked in global sales across Europe, North and South America, Australia and parts of Asia.

In a message announcing the business launch, Baumann said her mission “is to support you in your next export strategic challenge, with a solid playbook of real-world experience, track record, roadmap and best practices for manufacturers.”

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