Claims of ‘Reverse Discrimination’ are no Excuse for Harming Underserved Small Businesses

For Immediate Release: 
Thursday, September 26, 2024

Statement from John Arensmeyer, Founder & CEO of  Small Business Majority, on why a Kentucky district judge’s decision to partially block the U.S. Department of Transportation from allocating money to women- and minority-owned businesses has the potential to devastate disadvantaged entrepreneurs

 

“The recent decision out of the U.S. District Court for the Eastern District of Kentucky to partially block the U.S. Department of Transportation from investing in women- and minority-owned businesses is a potentially devastating blow to our nation’s smallest firms, many of which are already struggling to grow their businesses. At the center of this case is DOT’s Disadvantaged Business Enterprise program, which has a goal of distributing 10% of federal contracting dollars to women- and minority-owned small businesses. Such programs are essential to the health of millions of small businesses nationwide because they go a long way toward leveling the playing field for systemically disadvantaged firms that have historically struggled to access federal contracts. 

Sadly, programs like DOT’s Disadvantaged Business Enterprise program are in the crosshairs of activists seeking to capitalize on the U.S. Supreme Court’s 2023 decision that declared affirmative action programs in education to be unconstitutional. Since that decision, these activists have secured a number of favorable court rulings with the goal of eliminating any and all federal programs intended to help historically underserved groups. Although small businesses owned by minorities are not exclusively the target of this activism, millions of entrepreneurs are likely to be collateral damage in these efforts.  

The stakes here are high. The unprecedented growth of new small business filings in recent years is being driven by women and minority entrepreneurs. These businesses are growing in part because of programs designed to help historically disadvantaged small businesses succeed.  To prevent stalled growth for an entire generation of women- and minority-owned entrepreneurs, judges must recognize that claims of ‘reverse discrimination’ ignore the reality that the playing field for small businesses is not equal. No one is arguing against support for all small businesses. But we must accept that some small businesses need more assistance than others. Ultimately, a one-size-fits-all approach to small business support will not address our most pressing needs, and the exponential small business growth we’ve experienced in recent years will be just a blip rather than a sustainable trend if programs intended to benefit women- and minority-owned small businesses are litigated out of existence.”   

 

About Small Business Majority

Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on TwitterFacebook and Instagram.

Press State: 
National