HELPING SMALL BUSINESSES TO RISE UP
National economic inclusivity is a necessity.
While understanding the motivations behind organizations like Interise is important, grasping their spirit offers deeper insight. Madam CJ Walker, Americaʼs first documented self-made female millionaire and a Black woman, represents the fight against racial and gender wealth disparities. Her philosophy—Don’t sit down and wait for the opportunities to come. Get up and make them—is a mantra for national economic inclusivity, reflecting an attitude embraced by Interise.
Minority and women entrepreneurs are underserved, underrepresented, and encounter significant barriers, notably in securing loans and capital. The ARPA and Infrastructure Bill, allocating over $3 trillion, is designed to address these racial and gender wealth disparities. Many of the worldʼs significant entrepreneurial achievements have emerged during times of economic crisis. History shows that economic downturns and challenging periods often serve as catalysts for innovation and the birth of new business ventures. These times of hardship have frequently pushed entrepreneurs to think creatively and develop solutions that address both the immediate challenges and lay the groundwork for future growth. This funding supports community-impacting initiatives and vital infrastructure projects, including transportation, utility upgrades, and environmental clean-ups, offering growth opportunities for small businesses.
Proudly celebrating 20 years, Interise, a Boston-based nonprofit, has been instrumental in empowering BIPOC businesses through its Minority Supplier Capacity Building program. The mission is quite simple: To create an inclusive economy by supporting established small businesses that are BIPOC-owned or located in low-wealth communities. This initiative strives to create and scale sustainable minority businesses. Interise’s efforts extend to teaching entrepreneurs about navigating regulations and scaling their businesses, as well as assisting purchasers in developing diverse supplier networks.
The economic impact of supporting BIPOC businesses is profound. After participating in Interiseʼs StreetWise ʼMBAʼ program, businesses owned by people of color and located in low-wealth areas have experienced growth rates significantly higher than the national average, BIPOC Interise alumni who secure new contracts see their revenues grow by an extraordinary 28-45% annually. This growth is two to three times faster than their peers, underscoring the importance of targeted support and investment in these businesses.
Securing long-term contracts is critical for sustainable business growth. Research indicates that these contracts are essential for expansion, and diverse procurement contracts benefit both cities and businesses. But how does diversifying procurement contracts help cities? A Harvard Business Review article makes the case. Supplier Diversity Programs: Invest in your community, burnish your brand, create competition among supplier (which lower costs and improving quality) and make supply chains more agile and resilient. Companies with long-term supplier diversity programs have been shown to generate a 133% greater return on investment, according to studies by The Hackett Group. For companies seeking long-term growth and sustainability, securing long-term contracts is of utmost importance. Research confirms the crucial role these contracts play in facilitating expansion. Notably, the diversification of procurement contracts offers mutual benefits for both cities and businesses.
As we strive toward an inclusive economy, inspired by trailblazers like Madam CJ Walker and propelled by organizations like Interise, the path forward is clear yet challenging. Though marked by considerable progress, the journey still has much ground to cover. Recognizing the potential of diverse communities and dedicated partners are crucial in overcoming the challenges faced by minority small business owners and ensuring equitable growth and opportunity for all.
