EXECUTIVE SUMMARY
1. EXECUTIVE SUMMARY For much of its history, Rhode Island has been a challenging place for Black Indigenous People of Color (BIPOC) entrepreneurs. For a variety of reasons, the state’s BIPOC residents have faced significant hurdles in starting, managing, and growing new business ventures. And, as elsewhere across the country, these challenging circumstances have been worsened as a result of the coronavirus pandemic. These legacies are reflected in the latest data on the state of BIPOC entrepreneurship in Rhode Island. BIPOC business owners currently lead around 7.4 percent of all Rhode Island-based firms, far below their relative population share and nearly half the US average. These businesses also account for significantly lower shares of employment and revenue. However, the demographics in Rhode Island are shifting and BIPOC populations are driving growth in Rhode Island. According to U.S. Census data, from 2010 to 2020, the White population in the state declined by nearly 4 percent, while all other ethnic groups combined increased by nearly 27 percent and Hispanic Origin (any race) increased by over 38 percent. This rapid shift in demographics presents an opportunity to invest in quickly-emerging business and consumer markets. In an effort to better understand these business trends, the Rhode Island Foundation and Rhode Island Commerce contracted with Camoin Associates to undertake a research project focused on building more inclusive, resilient, and successful entrepreneur ecosystems that provide world-class services and support to the state’s BIPOC business owners and aspiring entrepreneurs. This assessment builds on a number of previous initiatives, including RI Commerce’s Rhode Island Innovates 2.0 strategy, and includes a review of the latest data on BIPOC business, an assessment of existing business support resources, and a series of recommendations for building more inclusive and diverse ecosystems that help more local people start and grow new ventures. The landscape of support programs in Rhode Island is large and diverse; there is no shortage of organizations and programs that are in the business of helping small businesses and entrepreneurs. Yet, presence does not equal equitable access. BIPOC entrepreneurs find it difficult to access many support efforts, lack trust in program effectiveness, or believe that these programs are not open to them. In other cases, the mix of programs and support efforts may simply be too complex and confusing. Rhode Island is home to extensive capabilities in nearly all of the core ecosystem building block components, such as access to capital and business support services. While room for improvement always exists, strong capacity is in place. Our challenge is less about creating new programs and capabilities, and instead about concentrating on improving access, developing more customized outreach, and programming for BIPOC entrepreneurs, and in nurturing a larger pipeline of BIPOC talent to tap into these support networks and business opportunities. Rhode Island’s BIPOC entrepreneurs must be at the table as these efforts move forward, not in an advisory role, but as shapers and drivers of the inclusive ecosystem building efforts. This report comes at a propitious time as many important initiatives to build a more inclusive and resilient economy are underway in Rhode Island. Governor McKee’s Rhode Island Rebounds plan includes major new small business investments, Rhode Island Commerce is leading the rollout of many new financing tools, and a new statewide network, funded via the US Small Business Administration’s new Community Navigator Program, is leading a new effort to better engage and support BIPOC entrepreneurs.
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