Economic Impact of Minority-Owned Small Businesses in California
This analysis explores the vital role that diversely-owned small businesses play in the California economy
The Integral Role and Future Prospects of Minority-Owned Small Businesses
Minority-owned small businesses (MOSBs) are crucial to California’s economic landscape, driving innovation and growth. In 2020, these businesses generated $414 billion and supported 3.6 million jobs in the state, showcasing their substantial impact. This report provides a detailed analysis of the diverse sectors in which MOSBs are active, including Professional Services, Construction, and Healthcare. The analysis highlights their essential contributions to the state’s economy as well as the impact they have on increasing diversity within the business community.
Despite their significant contributions, MOSBs face numerous challenges, including limited access to capital and regulatory hurdles. The report explores these issues and offers policy recommendations aimed at enhancing the growth and sustainability of minority-owned businesses. Through comprehensive case studies and expert analyses, the analysis emphasizes the need for supportive policies and programs to ensure MOSBs can thrive and continue to positively influence California’s economy and culture.
Key Highlights
Economic Contributions
In 2020, diversely-owned small businesses added $414 billion to California’s economy and supported 3.6 million jobs.
Industry Insights
MOSBs offering Professional Services face very different challenges than those in Construction or Healthcare.
Challenges and Policy Recommendations
There is substantial opportunity for MOSBs to expand their market reach by integrating into the government procurement supply chain.
Expert Insights
Miriam Valdes Ibarra
“If California’s minority-owned small businesses were their own state, they would have economies larger than Oregon and South Carolina. Our research highlights the significant impact of these businesses, the unique challenges they encounter, and highlights effective policies that can support their growth and sustainability.”
– Miriam Valdez Ibarra PhD, Policy and Economic Development Manager, Beacon Economics
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Access comprehensive data and expert analysis on the state of minority-owned small businesses in California. This report is essential for understanding their economic contributions and policy needs.
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