|
Getting your Trinity Audio player ready...
|
By Aden Ferguson
The Small Business Administration (SBA) recently announced its Equity Action Plan, an initiative aimed at providing increased support and opportunities for minority-owned small businesses across the country.
The plan focuses on three key areas – access, resources, and investment. The SBA hopes to improve minority entrepreneurs’ access to the federal contracting space, which has historically disadvantaged business owners of color. The agency plans to increase outreach to inform minority business owners of SBA resources available to them, including financing programs, training, and mentoring.
Additionally, the Equity Action Plan looks to boost investment in minority-owned firms through modifications to the SBA’s loan programs. Studies have shown that minority-owned businesses have been disproportionately denied access to capital, hampering their growth. The SBA will implement an equity scorecard to track lending to entrepreneurs of color and help address gaps.
Advocates for minority-owned businesses have applauded the plan because access to capital remains one of the biggest barriers for minority-owned firms. They believe that the SBA’s increased focus on equity will go a long way toward leveling the playing field and realizing the full economic potential of diverse-owned businesses.
According to SBA Administrators, the Equity Action Plan will spur job creation and economic growth. Minority-owned businesses are one of the fastest-growing segments of small business ownership. As a result, the SVA must support their inclusive and sustainable development.”
The SBA’s initiative comes on the heels of Census data showing the number of minority-owned firms increasing significantly over the last decade. The SBA projects that minority-owned businesses could produce over 1 million new jobs by 2025 if support keeps pace with demand.
With the implementation of its Equity Action Plan, the SBA aims to ensure minority entrepreneurs have equal access to resources that enable small businesses to start, grow, and compete. For minority business owners, it’s an opportunity that’s been a long time coming.
