Op-Ed: Advocating For Change And The Importance Of Policy Support For Black-Owned Businesses

Editorial Note: Opinions and thoughts are the author’s own and not those of AFROTECH. In today’s rapidly evolving economy, equitable policies that support Black-owned and minority-owned businesses are not just a moral imperative, but a necessity for national growth. Despite their resilience and innovation, systemic barriers continue to block the full potential of these businesses. From access to capital to securing federal contracts, the current policy landscape often fails to reflect the challenges minority entrepreneurs face. To foster real economic progress, we must push for comprehensive policy changes that promote equity and empower these businesses to thrive. Black-owned businesses account for about 2.2 million firms, contributing $150 billion to the U.S. economy. Yet, they still face significant obstacles, particularly in securing financing. Research from the Federal Reserve shows that Black and minority entrepreneurs are disproportionately denied loans. Black entrepreneurs face denial rates as high as 20%, compared to 9% for their white counterparts. This inequity in access to capital not only limits the growth of individual businesses but also contributes to the economic disparity in minority communities. Federal procurement policies also fall short in supporting minority businesses. The U.S. Small Business Administration (SBA) reports that Black-owned businesses receive just 1%...