Gina M. Raimondo, Secretary of Commerce | Ballotpedia
Thank you, Eric, for that introduction and your continued leadership. Hello everyone, and welcome to the Department of Commerce. It is a pleasure to join you all here to discuss our efforts to ensure that all Americans and businesses have the resources they need to succeed and thrive.
There has never been a more important time for this work. Capital access is critical for the nation’s success. Small business startups determine the strength and vitality of our economy, drive innovation that allows us to lead globally, and power job growth in local economies.
The last three years have seen record numbers of small business starts in this country. Through historic legislation such as ARPA, BIL, CHIPS, and IRA, the United States is making once-in-a-generation investments driving global economic competitiveness.
Growth in small businesses also drives wealth creation and accumulation, which is crucial for long-term success but even more so in underserved communities and communities of color. These communities have long operated within systems not built with them in mind.
Systemic obstacles hinder their quest for success and ability to build intergenerational wealth. While there have been gains in wealth for many, including over 60 percent growth in Black wealth since the start of the Administration, it has not significantly closed the racial wealth gap.
The Federal Reserve’s 2022 Survey of Consumer Finances showed substantial wealth disparities between families of different racial and ethnic groups. According to that survey, Hispanic families' median wealth was $61,620; Black families’ median wealth was $44,890; White families’ median wealth was over $285,000.
Addressing this wealth gap requires uplifting minority business enterprises and creating economic opportunities within communities that need them most. President Biden, Vice President Harris, and the Commerce Department recognize diversity as one of America’s greatest strengths and believe equity must underpin all efforts to create an inclusive economy.
Entrepreneurship is a key pathway for wealth creation among minority communities across America. My own family’s legacy includes generations of Black entrepreneurial success. Despite historical successes like my four-times great grandparents' horse-and-buggy taxi business or their son's premier hotel nearby—one of our nation’s first Black patent-holders—wealth creation was not guaranteed for later generations.
I struggled to raise capital for my own entrepreneurial endeavors. This experience highlighted persistent factors contributing to underrepresentation among minority business enterprises—none more pressing than access to capital.
Capital is essential for business success; however, business owners of color are 5-9 percent more likely than their white counterparts to apply for traditional financing but are far less likely to receive full financing or any at all.
This disparity led the Minority Business Development Agency (MBDA) to launch the Capital Readiness Program—a $125 million initiative funding 43 geographically diverse business incubators supporting minority entrepreneurs launching or scaling their businesses.
These incubators include non-profit organizations, private sector entities, and institutions of higher education forming partnerships providing resources such as tools, training programs targeting high-growth industries like healthcare or climate-resilient technology.
Service models range from early-stage technical assistance/incubators helping enterprises launch products/services—to emerging-business technical assistance/accelerators guiding growth/expansion efforts ensuring fair/equitable infrastructure meeting unique financial needs today’s minority entrepreneurs face growing stronger enduring through MBDA tireless efforts flowing trillions into pockets securing future prosperity together writing new chapter America economic history.
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