Small businesses receive increased attention from the Biden-Harris Administration.
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The minority businesses are growing in Massachusetts But the state must increase its support for this sector to help offset a lag of years, according to the results of a study.
Although there is a boom in minority-owned businesses, white residents are still 2.5 times more likely to own a business than blacks, notes the study by MassINC and the Coalition for a Fair Economy, released this week and collected this Sunday by the Massachusetts digital newspaper, telegram.com.
“The growth in business ownership among people of color was very strong over the last decade in Massachusetts, but we are building from a very small base, so even though we saw this significant growth, it did not close the gaps.”warned Ben Forman, research director for MassINC.
The report set out strategies to close those gaps and help generate more equitable economic growth.
One of the proposals is to support entrepreneurs of color with additional technical assistance and expand networking opportunities in industry organizations that work with minority populations.
Another issue that the study suggests and that has been denounced by small business owners is the obstacle to obtain bank loans or to learn about other financing opportunities, highlights telegram.com.
The third point is access to markets and customers, and the report indicates that public procurement programs aimed at directing state or municipal dollars to minority-owned businesses are often “flawed and ineffective,” the newspaper adds. .
For his part, the Secretary of State for Housing and Economic Development, Mike Kennealy, highlighted that the Administration of Governor Charlie Baker has shaped its response to the pandemic in part to mitigate the disproportionate economic impact that entrepreneurs of color have felt.
He recalled that more than 650 million dollars have already been given to support small businesses, of which up to March 213 million dollars had been directed to minority-owned businesses.
“We have done a lot in the last year, but there is more to do”stated Kennealy.
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