Heeding the call for greater race and gender equity, policymakers, donors, and investors want to uplift small businesses in underserved communities. But boosting access to capital for business owners of color is easier said than done. In this video, we identify the importance of microloans in meeting firms owned by people of color where they are in terms of their capital needs. And we highlight the work of community development financial institutions (CDFIs) in serving this vital role. Members of the Aspen Institute’s Microfinance Impact Collaborative, for example, issued over 8,300 loans in 2018, 75% of which were to entrepreneurs of color. Learn more about the Microfinance Impact Collaborative.
Tweet Due to systemic racism and wealth inequality, #entrepreneurs of color have less wealth to self-finance their businesses. That’s why boosting access to capital for #smallbiz owners of color is so important.
The Business Ownership Initiative works to build understanding and strengthen the role of business ownership as an economic opportunity strategy. BOI is an initiative of the Economic Opportunities Program.
The Economic Opportunities Program advances strategies, policies, and ideas to help low- and moderate-income people thrive in a changing economy. Follow us on social media and join our mailing list to stay up-to-date on publications, blog posts, events, and other announcements.