In a new report, COVID-19 AND ENTREPRENEURIAL FIRMS: Seeding an Inclusive and Equitable Recovery, the Kauffman Foundation examined federal, state, and local programs in the United States aimed at assisting small and new businesses struggling in the midst of COVID-19. The report provides three insights to inform more equitable design of future relief and recovery policies and programs for small and new businesses. These include:
- Programmatic equity and inclusion goals can complement economic growth objectives. Including entrepreneurs and small business owners from diverse backgrounds in the development of such programs can improve their design. Previous research has shown that closing gaps in economic outcomes would add significantly to GDP. 1 It is likely that equity and inclusion efforts in entrepreneurship policy and programs, specifically, could also have significant economic impact. When people of the broader community are active participants in the development process, they can help more effectively identify the types of services that are most needed among different types of entrepreneurs.
- Program designers need more guidance from federal and state government on the development of reporting metrics. While there are numerous resources that provide examples to small business, entrepreneurial support organizations, and program leaders of what metrics to track, how to collect data, and how to report on it, there are no specific requirements for which metrics should be tracked or how and when they should be tracked and reported on, leaving program designers to determine their own strategies.
- The tracking of equity and inclusion metrics should be paired with purposeful program design and feedback loops. Programs should consider the unique needs of the communities they are serving and provide wrap-around supports that can help businesses make the best use of the funds they receive. Tracking not only participation metrics, but also business outcomes, can help program leaders better understand the impact the program is having and illuminate ways in which the program can better provide assistance to small businesses to maximize survival and overall resilience.
Read the full report here.