Diversity & Inclusion
Together, We Are Stronger It’s good business to holistically address challenges faced by minority-owned businesses BY AYANNA KHAN AS OUR ECONOMY continues to reopen, recover, and rebound, we’ve learned many things from the events over the past two years—from a health crisis to civil unrest, to social injustice and racial inequity. Our experiences have shined a bright light on unique challenges as well as extraordinary opportunities facing Delaware’s minority-owned businesses. When reflecting on 2021, several issues are evident. Minority entrepreneurs often face systemic racism, difficulty in securing funding, and a lack of social capital on which to draw. However, there is hope in the form of support and resources at that are becoming available for the minority business sector here in Delaware. Programs to increase access to capital for underserved populations as well as business training support and mentorship are desperately needed. When more resources are offered, the number of successful small businesses will increase, and ethnic income gaps will reduce. 56
Minority business owners traditionally have less access to much-needed business and management skills that are important to running a company. In addition, people of color tend to lack access to capital and collateral and have lower credit scores. This can lead to higher interest rates or to more frequent loan denials. While people of color start businesses at the same rate as white entrepreneurs, there is a vast disparity in profitability, size, and early survival rates. One area of disparity that is most significant for minority entrepreneurs is the gap in business financing. According to one study, minority-owned businesses grew by 79 percent over the last 10 years. That represents a significant increase compared to overall small-business growth for the same period. However, the strength in numbers does not translate to financing. While many small businesses have been able to access federal relief to aid from the impact of the pandemic, some small business owners struggled Jan uar y / Fe b r uar y 2022 | DELAWARE BUSINESS
