Small Business Capital: A Place-Based Approach
Local governments and place-based philanthropy partnerships are unlocking opportunities and paving the way for equitable access to capital for small businesses.
By Anne Bovaird Nevins with contributions from Dr. Dell Gines, PhD., CEcD
Accelerator for America and the International Economic Development Council are excited to present the first segment in a two-part series exploring the needs and opportunities to drive more equitable entrepreneurship and small business growth in communities across the U.S. This first piece addresses equitable capital access, and the second will delve into the other critical elements of the entrepreneurial and small business ecosystem that are necessary to foster inclusive growth. Both parts of the series will focus on the role that mayors, local governments, and place-based philanthropies can play in addressing gaps and creating more equitable opportunities in their communities.
Mayors and local economic and community development leaders are keenly aware of the critical role that small businesses play in the economies of their cities and regions. Local leaders see the direct impact of small business growth (or decline) on their local tax base and the availability of public resources to provide critical services and enhance the quality of life for all residents. At the same time, cities and communities across the U.S. have extreme and long-standing racial and ethnic gaps in small business ownership. While multiple and intersecting reasons exist for these gaps in small business ownership and growth, access to capital is a critical obstacle.
Many mayors and local leaders have recognized that they must focus on growing their cities’ economies in ways that directly address these disparities, including meeting the capital needs of entrepreneurs of color. This approach has both the direct benefit of generating more equitable local wealth and employment growth, while also having the indirect benefit of increasing the local tax base for the benefit of all residents. In the absence of a growing, inclusive local economy that generates sufficient resources to meet community needs, place-based philanthropies are often called upon to fill the void by supporting health, human services, food access, and other critical resources.
How can we create a virtuous cycle wherein place-based philanthropy can support business growth that, in turn, supports community growth? How can place-based philanthropy pivot from often being the triage for community needs to the catalyst for community wealth?
Anne Bovaird Nevins is a senior economic and community development executive with nearly two decades of experience in the field. Anne currently serves as Director of Economic Development with Accelerator for America (AFA), a national nonprofit organization that finds and develops solutions to drive equitable economic and community development and shares them with cities to create national change from the ground up. Prior to joining AFA, Anne served as President of PIDC, Philadelphia's public-private economic development corporation.
Dr. Dell Gines, CEcD, a nationally renowned thought leader in economic development and entrepreneurship ecosystem building, serves as the Vice President of Partnerships, Advisory Services, and Thought Leadership for the International Economic Development Council (IEDC). Dr. Gines is a Certified Economic Developer (CEcD), holds a Master of Business Administration, a Master of Finance, and a Ph.D. from the University of Nebraska School of Public Administration. Prior to joining IEDC, he focused on empowering communities of color and economically distressed, small, rural communities at the Federal Reserve Bank of Kansas City.