Minority-Owned Businesses, Racial Wealth Gaps and the U.S. Economy
By Michelle Loredo
According to the U.S. Senate Committee on Small Business and Entrepreneurship, in the last 10 years, there has been a rise in minority-owned small businesses. It has increased by 50 percent and created about 4.7 million new jobs. Even with the exponential growth of minority business owners, they face many struggles in getting access to capital and opportunities.
We have put together how minority businesses can close racial wealth gaps and rebuild the U.S. economy.
Striving for Economic Equity and Capital Access
Historically, Black, Indigenous, people of color and minorities face many struggles to start and own a business. They often face many obstacles when it comes to getting financial help to start their business.
One of the ways the wealth gaps can be closed is by banks updating their policies so that more people can qualify for their financial help. This can be done campaigns aiming to help minority business. The campaigns can include:
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Creating BIPOC Oriented Lending Programs
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Effective Corporate Pledge
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Investing in Financial Literacy Programs
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Tax Deduction Programs
Investing in Their Communities
Investing in BIPOC communities is fundamental in closing the wealth gap. According to the Aspen Institute if corporations donated 2 cents for every dollar they make, the wealth gap of white and Black people would decrease from 13:1 to 3:1. Investing in minority-owned businesses will not only help their communities but create new jobs, help more people become home business owners, and strengthen the U.S. economy.
Here is a list of how you invest in BIPOC communities and businesses:
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Buying from minority-owned small business
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Government lead investing campaigns
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Hire employees from all backgrounds
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Investing in minority-owned startups
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Make business deals with a variety of clients
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Make funding accessible to all business owners
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Hire employees from all backgrounds
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Make business deals with a variety of clients
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Government lead investing campaigns
Eradicating Racial Biases
Racial biases are affecting minority business owners and their journey in closing racial wealth gaps. Eradicating racial biases is not an easy feat but, by putting in the work, we can move in the right direction.
Here are few steps you can take to eliminate racial biases:
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Actively unlearning biases
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Realize that racism exists in different forms
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Understating racial biases
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Understanding minority business owners
Need Help?
If you are thinking of starting your own business, the SBDC Network is here to help! We have 14 centers scattered across the Texas Gulf Coast area. We have business advisors, specialists, and government procurement professionals that will help you with your business needs. All of the SBDC services are free, and we also have no cost live and recorded webinars. Whether you are starting a business or need help getting capital to get started, the SBDC aims to help close the wealth gap and strengthen the U.S. economy.
