To jumpstart local economies, it’s time to invest in diversity

As local leaders, one of our top priorities is always to ensure that small businesses have the resources they need to grow and thrive. Far too often, however, minority-owned and women-owned small businesses have struggled to receive equal opportunity. The awareness of these challenges grew exponentially during the pandemic, when city governments were interacting directly with small businesses like never before. As cities and towns across America work to grow our economies in the wake of the pandemic, we are more focused than ever before on ensuring that all small businesses walk onto a level playing field. More than ever, cities like ours are making intentional investments in the success of underrepresented entrepreneurs. We know this is the only way that our cities can reach their full economic potential.

While we may come from different political parties, we share a common goal of creating an economy that works for all of our residents, no matter their background. Our country may not promise equal outcomes, but the American Dream does promise equal opportunity. When we see ongoing racial and geographic disparities within our cities, and the endurance of generational poverty, we can see that we are falling short of our ideals. Economic outcomes have been almost preordained, with women and entrepreneurs of color facing additional barriers to access and opportunity. Even today, these groups of entrepreneurs often experience insufficient access to business credit, lack of investment capital, and few mentorship opportunities to help small businesses thrive.

Richmond is 55 percent non-white. The kids of Oklahoma City are 60 percent non-white. As our cities grow more diverse, so too do our economies, and it is important to ensure that no one gets left behind. That’s why we are committed to taking decisive action to empower these communities of entrepreneurs and help them start and scale new business ventures. The American Rescue Plan Act, signed into law in 2021, was a historic opportunity to help address these disparities by providing resources directly to our cities to support struggling small businesses, with an added emphasis on minority-owned operations. We need to take full advantage of these resources and continue to invest in underrepresented entrepreneurs to develop truly inclusive economies for future generations.

As one example, Oklahoma City capitalized on unprecedented federal funding to help minority-owned small businesses within our community overcome the challenges caused by COVID-19. In the spring of 2020, using federal funds, OKC created the Small Business Continuity Program. Kindred Spirits, a Black-owned bar located along the most important street in a predominantly Black neighborhood known as the “eastside” to locals, received funding through the program to expand their patio to allow for social distancing. Its owner, Quintin Hughes, said that the funding not only enabled them to continue doing business, but allowed them to make their patio “something that is very unique to the eastside.”

We remain focused on these efforts even beyond the immediate pandemic response. Last year, Oklahoma City appointed its first Diversity and Inclusion Officer, and approved $15 million to establish the Henrietta B. Foster Center for Northeast Small Business Development and Entrepreneurship to provide additional support to minority small and disadvantaged businesses. The city also commissioned a Recovery and Resiliency Study to better understand the barriers to equitable economic growth, which engaged community stakeholders and provided recommendations for how to use federal aid to best assist small, underrepresented businesses. In Richmond, the city’s Equity Agenda includes $6 million in direct aid to small businesses and a planned disparity study to pinpoint steps the city can take to improve minority business participation in the public contracting process.

We cannot look solely within our own communities to solve these challenges. From public-private partnerships to work through national organizations and associations, looking outward can give us a new perspective, additional resources, and invaluable information about best practices to tackle our common challenges. For example, both Richmond and Oklahoma City are currently participating in the National League of Cities City Inclusive Entrepreneurship Network, which provides us with funding and technical expertise to help us achieve a common goal of increasing the number of women represented on economic development boards and commissions in our communities. Ensuring that women are able to make their voices heard, express their concerns and share key insights within these groups is fundamental to making sure our cities are fostering a business environment in which all perspectives are heard, and all entrepreneurs can succeed.

We also recognize that access to capital is essential for our small businesses. That’s why both of our communities have worked with the CIE Network to launch micro-lending programs that provide a low-interest way for entrepreneurs who would otherwise struggle to access capital to get their small businesses off the ground. Oklahoma City implemented its program in 2020, setting aside 25 percent of the funding for Black-owned businesses. Meanwhile, Richmond is currently developing its own micro-lending program, as well as increasing opportunity for minority business enterprises (MBEs) to contract with institutions that are bedrocks in our communities, like hospitals and universities, and encourage engagement with community development financial institutions in order to access more funds.

These types of investments will help ensure our cities emerge from the pandemic not just with a stronger economy but a more equitable one. That said, we know building an inclusive economy will not happen overnight. There is still much to do, not just in our own communities but across the country. We call on all policymakers to join us in taking concrete action toward addressing disparities and reducing inequality for underrepresented entrepreneurs. Doing so will not just empower those entrepreneurs but strengthen our entire economy for years to come.

David Holt (R) is the mayor of Oklahoma City, Okla., Levar Stoney (D) is the mayor of Richmond, Va.