While present at The Black Enterprise Entrepreneur Conference held in Atlanta it came to my attention that there are a lot of people including myself at the time who were not aware of the 51 to 49 rule. On behalf of the public, I would like to thank Tim Burt from Tim Burt Enterprises for sharing his knowledge and concept of what the 51 to 49 Rules actually means and how minorities can benefit from it.
Put simply, the 51 to 49 rule is the percentage of business ownership entitlement between a Minority Woman and Man who have decided to go into business with one another as partners.
Usually, the man will agree to entitle the woman 51 percent ownership in any new business start ups; regardless of who originates the business idea or not, in order to ensure fair funding practices from grant organizations and investors.
Poor business practices from minority men of the past have made it less favorable for venture capitalist and bankers to trust that new business men are handling their funds appropriately and honestly. However sad, this is what the honorable minority men of today have to face.
In retrospect, there are more female entrepreneurs than there are male entrepreneurs. There are more successful women making a difference in the business community than their male counter parts. With that being said, Investors and bankers are more willing to trust their loans, investments, or grants with businesses that are primarily owned by minority Women.
The resolution is team work between minority men and minority women the way nature intended it to be.
The advantages are listed below:
- More assistance to new business practices -female
- A natural nurturing partner who builds a business with care -female
- More opportunity for Grants, and Loan programs –female&male
- Diverse demographic of business –female&male
- Diverse perspective which originates new ideas and innovations –female&male
- Less underestimation from investors –male
- Traditional Business respect –male
- As a male partner, lawfully you're only entitled to 49 percent of the potential millions of dollars you’ll generate with your female partner regarding that 1 business venture.
- No more male Ego