Black Web 2.0 recently held its annual New Media Entrepreneurship Conference (NewMe Conference) where Henry Rivera, Chairman of the FCC Federal Advisory Committee (FACA) and renowned attorney within the communications sphere, spoke on the issue of minority new media entrepreneurship.  Specifically, he highlighted the challenges that new media entrepreneurs commonly face when trying to start a business in the media and telecommunications space.  As Mr. Rivera expressed quite pointedly,  “The increased use of the Internet as a one-stop source for all our needs has essentially redefined media’s role as a source of information and driver of opinion, and offers a truly unique window of opportunity for minority business development to flourish.”

So why is it that minority entrepreneurs are so sorely underrepresented in this new industry?  Rivera hit the nail on the head when he explained access to capital as a central barrier to minority new media entrepreneurship.  Finding the seed money to start a new business is the nightmare that all entrepreneurs face, particularly minorities.  Despite the talent and ingenuity that minority entrepreneurs possess, without the start-up capital, chances of success are slim to none, particularly when you are competing against big muscle incumbents for media space.  According to Rivera, classic market entry barriers including challenges in obtaining required licensing and bonding and the preference that national and regional lenders give to larger corporate transactions are just a few of the many barriers that are in store for the little man.

More mind boggling is the fact that the FCC has 75 untouched minority ownership proposals sitting on their desk.  Rather than acting on some of these recommendations, the FCC has placed this issue on the back burner.  During a time when business development and job creation is so critical, why not take the time to implement recommendations that will improve minority entrepreneurship?  Many of the recommendations provided offer simple and effective ways for addressing disparities in minority ownership, for example, through development of minority loan guarantee programs and implementation of modest incentives that can encourage broadcast companies to incubate or finance minority broadcasters, thereby increasing their chances for success.

The FCC needs to place more attention on minority new media entrepreneurship issues.  Rivera summed it up very well in his closing remarks at the NewMe Conference when he stated: “How the nation infuses broadband with diverse talent and the new ideas that diversity brings to the table will be the true test of our democratic values.”  There is a demand for the services and products that minority new media entrepreneurs can provide and the FCC needs to move forward in doing what is within its authority to foster more minority ownership.  With a growing U.S. Hispanic population, the FCC especially needs to be reminded of the important role Hispanic new media entrepreneurs can have in meeting the unique needs and service demands of a growing Hispanic market.  While it is easy to say that the ball is in the FCC’s court, the fact remains that the new media entrepreneurship community needs to remain engaged and ensure their needs are met and their voices heard.