Business formation rates among Black and minority entrepreneurs have increased over the past decade. Data from the U.S. Census Bureau Annual Business Survey shows growth in the number of minority-owned employer firms. However, formation rates alone do not tell the full story. The gap between registering a business and building a sustainable enterprise remains wide, and it is shaped by structural factors that are not resolved by the act of incorporation.
Access to capital is the most frequently cited barrier. SBA Office of Advocacy data consistently shows that minority-owned businesses receive smaller loan amounts, face higher denial rates, and are more likely to be discouraged from applying for credit than comparable non-minority-owned businesses. This capital gap limits the ability to hire, invest in equipment, and weather the revenue volatility that characterizes early-stage business operations.
Technical assistance — the provision of business planning, financial management, and operational support — is available through a network of Small Business Development Centers, SCORE chapters, and Minority Business Development Agency centers. In North Carolina, these resources are accessible in major metropolitan areas, but coverage in smaller markets and rural communities is uneven. Entrepreneurs in Wilmington and coastal North Carolina have access to some of these resources, but utilization rates suggest that awareness and accessibility remain barriers.
Procurement — the opportunity to sell goods and services to government agencies and large corporations — represents a pathway to sustainable revenue that is less dependent on consumer market conditions. Federal small business contracting programs, including the 8(a) Business Development Program and the HUBZone program, are designed to direct contract dollars to disadvantaged and underserved businesses. Navigating these programs requires registration, certification, and the capacity to respond to solicitations — a process that can be difficult for early-stage businesses without dedicated administrative support.
Arias Vanier Gray LLC operates in this space, providing business structuring, government contracting support, and consumer advocacy services to clients in the Wilmington region and beyond. The analysis presented here draws on the firm's direct experience working with small business owners navigating these systems, as well as publicly available data from federal agencies and research institutions.
Sustainable ownership requires more than formation. It requires capital, technical support, market access, and the institutional knowledge to navigate systems that were not designed with small and minority-owned businesses as the primary user. Closing the gap between formation and sustainability is a policy and practice challenge that deserves sustained attention.