On December 20, 2024, the White House Council of Economic Advisers (CEA) released a report detailing significant racial disparities in government contracting. The report reveals that minority-owned firms receive a disproportionately low amount of contracting dollars compared to their representation in the business landscape. Specifically, the data indicates that Black, Hispanic, Asian, and Native American firms have experienced persistent gaps in contracting opportunities, with funding for minority businesses declining from 82% in 1977 to just 53% in 2019. These disparities have remained largely unchanged since the 1990s, particularly in regions with higher racial bias.
The CEA report underscores the importance of Disadvantaged Business Enterprise (DBE) goals, which have been implemented to help mitigate these gaps. Since the Biden administration took office, there has been a notable increase in minority business ownership, with over 20 million new business applications filed. In fiscal year 2023, small businesses were awarded $178.6 billion in contracts, with $76.2 billion specifically allocated to small disadvantaged businesses.
The report emphasizes the necessity for race-conscious actions to ensure equality in government contracting. This aligns with ongoing initiatives by the U.S. Minority Business Development Agency (MBDA), which recently celebrated the successes of its Capital Readiness Program (CRP) aimed at enhancing access to capital for underserved entrepreneurs. The CRP has supported over 6,000 entrepreneurs and raised significant capital, reflecting a broader commitment to addressing economic disparities faced by minority-owned businesses.
As highlighted by Deputy Under Secretary Eric Morrissette during the MBDA celebration, the agency's efforts are crucial in fostering an inclusive economic environment. The combination of these initiatives and the findings from the CEA report illustrates a concerted effort to promote diversity and reduce barriers for entrepreneurs of color in the United States. [0adfaf6f][f4df415c][2d422a67]