Uniting America starts with sparking economic growth, remembering when we fuel the economy it means there’s plenty for everyone. When people have equal access to opportunities, education, jobs, and housing, they can make positive contributions to society, their families, and their communities, without being bogged down by fears or divisions.  

It may not feel like it, but really, It’s always been like this—just look at history. Whenever our economy and society were doing well, it was often because we supported entrepreneurs and their businesses, big and small. Specifically, investing in minority-owned businesses is good for the economy; it’s a powerful way to bring us all together. That’s the kind of growth that shows us the way forward together.

When reflecting on jobs, the economy, and presidential impacts, the JOBS Act stands out even more than the Affordable Care Act, or Obamacare.  In the long run, Obama’s legacy will shine brighter for the JOBS Act. This pioneering initiative has opened up innovative ways for small businesses, especially those owned by minorities, to access the capital.  

The JOBS Act created the tools to launch a wave of entrepreneurship among groups long hindered by a lack of funding for their ventures. 

Imagine expanding and modernizing the groundbreaking JOBS Act from the Obama era will unlock vast amounts of capital for many underrepresented entrepreneurs. These business owners have viable businesses and revenue opportunities but often lack the necessary capital to fully realize their visions.

Unlike Obamacare, which has faced numerous repeal efforts, the JOBS Act enjoys broad support across both political parties. Its regulatory framework empowers emerging businesses to raise funds from their communities and stakeholders, democratizing investment opportunities so that everyone—not just the wealthy—can invest in startups.

There is still significant work to be done for the JOBS Act to fully deliver on its potential for driving economic growth and equality. In some areas, the program’s rules are more restrictive than necessary. This rigidness, coupled with inadequate federal funding, significantly hampers the program’s effectiveness, particularly for women and minority entrepreneurs.

The entrepreneurial surge among minority-owned businesses in the U.S. is substantial, but access to capital remains a critical hurdle. According to a report by the Minority Business Development Agency, while minority-owned businesses demonstrated significant economic impact, they receive significantly less in business loans compared to non-minority businesses. Furthermore, the interest rates paid by minority-owned businesses are typically higher, despite their substantial contributions to the economy.

This disparity in funding is a key factor that continues to stifle the growth of these businesses, despite generating more than $1.8 trillion in revenue and their role in employing 6.3 million workers. This demonstrates the need for more equitable financial support systems to ensure these businesses can grow and expand their positive impact on the economy.

Closing these racial gaps in entrepreneurship could have substantial economic benefits – especially in the area of employment. If the number of minority-owned businesses matched their labor force participation, the U.S. could see an addition of more than 1.1 million businesses, supporting approximately 9 million jobs and adding nearly $300 billion in workers’ income. Overall capital for Black-owned businesses, which surged after events like George Floyd’s death, dropped by 45 percent in 2022. 

Venture capital funding for Black-owned businesses significantly declined in recent years, with Black women-founded companies receiving barely one third of one percent of all U.S. venture capital investments made in 2021. An adequate level investment in Black women entrepreneurs over the past decade could have added $500 billion to the U.S. GDP.   

To overcome these business funding deficits, legislators need to explore additional tools and mechanisms to support minority-owned businesses. 

For example, the State Small Business Credit Initiative (SSBCI) channels federal funds to state governments to reinvest in minority and women-owned businesses. The program has been growing, and expanding the $10 billion program will be a step in the right direction.  

Other key initiatives should include:

• Creating pipelines for more people of color to be financial decision-makers – i.e. bankers, loan officers, and venture capitalists.
• Enhancing programs like NYC’s Venture Access Alliance, Pledge LA, BLCKVC, HBCUvc.
• Giving access to more Americans to invest in local small businesses and startups. Everyone should be allowed to invest relative to their risk profile, financial position, and knowledge.

Think about this, the era when microloans and $10,000 or $25,000 pitch competitions could grow a business is fading. While the founders will be immensely appreciative to receive microloans and win the cash awards at pitch competitions, let’s be realistic about the many hoops we are asking entrepreneurs to jump through and the real costs of starting a business. It’s been awhile since we’ve heard about someone starting with $1,000 and growing their business to multi-millions, and there’s a reason why. So instead of offering amounts which are insufficient for significant growth and misaligned with today’s business costs, let’s collectively invest in more efficient ways and in meaningful amounts. 

Using the federal government’s oversight of pension funds through the Employee Benefits Security Administration of the Department of Labor to urge greater allocations of resources to venture capital and revising tax codes around donor-advised funds (DAFs) to encourage actual investments rather than letting the money sit idle will enhance funding availability.. 

A new mindset is essential when creating modern parameters for supporting business startups. These changes won’t happen on their own. Congress and other stakeholders need to exert pressure—politically, regulatorily, and legislatively—to create more minority funding mechanisms and incentives. 

Regardless of who’s president, expanding investment in startups and small businesses is the path forward to growing the economy, replenishing state and federal budgets, creating jobs for Americans, and bringing new products and services to market that will keep America competitive in the global marketplace. 

By encouraging wider access to business financing on behalf of minority firms we can achieve a more equitable and prosperous economy.