Doing good isn’t just good for business.
It is necessary for US economic growth.
Emerging Domestic Markets consist of the fastest-growing segments of the U.S. economy and have an enormous, untapped growth potential for businesses. Corporations would be wise to tailor their community involvement initiatives to the needs of these EDMs in order to expand their opportunity for growth and to build a competitive advantage in the marketplace.
Emerging Domestic Markets (EDMs) refers to the people, places or enterprises with growth potential that face capital constraints due to systematic undervaluation as a result of imperfect market information.
The markets include:
Urban and rural communities;
Ethnic and women-owned firms;
Companies serving low-to-moderate income populations;
and Other small- and medium-sized businesses.
For example, African Americans and Latinos populations in the United States are growing steadily and will comprise 39% of US population as soon as 2050. Growth combined with declining education levels are expected to impact workforce and income levels, thereby the US economy. (The Future Middle Class, Demos 2006)
The net worth of African Americans ($5,988) and Latinos ($5,932) compared to white households ($88,651) underscores the gap between wages and access to opportunities. (The Future Middle Class, Demos 2006)
Disparities in healthcare also undermine income security for African Americans, Latinos and other ethnic groups who make up much of the 47 million uninsured. (The Future Middle Class, Demos 2006)
