CEED: Solutions and Limitations
Overall, there is a dearth of research that places our target populations at the center of inquiry. The historiography of local entrepreneurship, civil rights, urban planning, and federal policy are well-documented in their respective silos. However, there is no comparable study considering the factors of this project that’s readily accessible. The authors, thus, recommend the commission of a comprehensive economic study specific to barriers involving race, gender, and class on business and entrepreneurship in Little Rock, advised and/or performed by people of color.
Consideration should also be given to the development of a Minority Chamber of Commerce. To this end, an impact and viability assessment of a Minority Chamber should be undertaken. While technology and innovation attract global interest and generate opportunities for investment and growth for entrepreneurs in the region, evidence of missed opportunities and significant room for improvement remains among in the microeconomic, neighborhood economy.
Additional consideration should be given to opportunities for collaboration. Less than one mile from Tech Park and the Venture Center, are two of metro-Little Rock’s historically Black colleges and universities (HBCU). Much like the student educational entrepreneurship collaborative partnership brokered with UA Pulaski Technical College, engagement with these two, local HBCUs, nestled in historically African-American neighborhoods, presents significant potential to invest in community partners and develop equity pipelines.
On the subject of access to capital, it’s important to note that when entrepreneurs of color — especially from distressed communities — request capital, the form of capital is often less interest in loans or equity partners as a first resort, rather, they are preferential to grants and seed capital that allow them to afford more risk as a startup and the freedom to properly structure and build their businesses.
Finally, we recommend approaching the development of entrepreneurial ecosystems from a microeconomic perspective. Situating entrepreneurial ecosystems in neighborhoods develops micro hubs that are better suited to support small business. In Arkansas, small businesses account for 99 percent of total business across the state and employ more than 48 percent of the state’s labor force.[1] Use and equitable development of entrepreneurial ecosystems, including space and resources for a diversity of entrepreneurs, will spur economic activity and benefit the development and success of start-ups and small business in the region.
To develop an inclusive entrepreneurial ecosystem, many stakeholders; public, private, capital, entrepreneurial and community — should be primed as equitable contributors. That is to ensure that everyone, especially the underrepresented, are not only engaged, but empowered to offer their best contributions and share in the responsibility for ecosystem success. To do this properly, any form of collaboration should support the development of critical infrastructure, and appropriate resources should be allocated to undergird innovative solutions that encourages greater participation from a diversity of stakeholders.
