Minority-Owned? Launch Strong, Grow Smart!
Minority-owned. Mission-driven. Market-ready.
A minority-owned business in the United States is defined as one that is at least 51% owned, operated, and controlled by individuals from recognized minority groups. These typically include:
- Black or African American entrepreneurs
- Hispanic or Latino business owners
- Asian American or Pacific Islander founders
- Native American and Alaska Native entrepreneurs
- Multiracial individuals identifying with a minority group
These businesses are vital to the U.S. economy, generating over $2 trillion in annual revenue and employing millions of Americans.
Common Minority Business Models
Minority entrepreneurs thrive across all industries, but some of the most common business models include:
- Food service businesses (restaurants, catering)
- Retail and e-commerce shops
- Construction and trade contracting
- Consulting services
- Health and wellness practices
- Creative services (design, media, photography)
- Tech startups in app development and SaaS
- Transportation and logistics
- Beauty and personal care services
Despite their economic power, minority-owned businesses continue to face systemic barriers, including:
- Limited access to capital and funding
- Reduced access to federal contracts and grants
- Fewer mentorship and network opportunities
- Disproportionate impacts from political and policy shifts, such as the recent efforts to dismantle the MBDA
Political Spotlight: MBDA Under Threat
In June 2025, Senators Markey, Cantwell, and others slammed the Trump administration for gutting the Minority Business Development Agency (MBDA)—cutting staff, canceling grants, and undermining programs vital to minority entrepreneurs. These cuts threaten billions in minority-owned business revenue and thousands of jobs. A federal court has temporarily blocked these actions, but uncertainty remains.
Read further on: Senate Committee Press Release
1. Validate Your Minority Status
Register your business as a minority-owned business with:
- SBA 8(a) Business Development Program
- National Minority Supplier Development Council (NMSDC)
- Your state’s minority business registry
This enables access to certifications, federal contracts, and targeted funding.
2. Choose the Right Legal Structure
Select a legal entity that suits your business needs. Common options include:
- LLC (Limited Liability Company) – Flexible and tax-efficient
- Sole Proprietorship – Easy to start but riskier
- S-Corporation or C-Corporation – For scalable or investor-backed growth
3. Secure Funding
Explore grants and loans specifically for minority entrepreneurs, such as:
- Community Development Financial Institutions (CDFIs)
- SBA Microloans
- Local grant programs for Black-owned or Latinx businesses
- Crowdfunding platforms tailored for underrepresented founders
4. Build a Business Plan
A strong business plan should include:
- Executive summary
- Market analysis
- Sales and marketing strategy
- Financial projections
- Organizational structure
Use templates from the SBA, MBDA (where accessible), or local small business development centers.
5. Network and Join Minority Business Communities
Networking can open doors to:
- Mentorship
- Peer-to-peer learning
- Referrals and partnership opportunities
Consider joining:
- Chambers of Commerce for minority businesses
- Industry-specific minority entrepreneur associations
- Digital platforms like Hello Alice or Backstage Capital
1. Stay Informed About Policy Changes
Given recent political efforts to cut MBDA and SBA minority programs, staying updated on:
- Federal funding decisions
- Grant application cycles
- SBA 8(a) changes
… is crucial. Subscribe to Senate Small Business Committee updates and local business development agencies.
2. Expand Your Market
Diversify your customer base through:
- Online selling and e-commerce platforms
- Bilingual or multicultural marketing
- State and federal supplier diversity programs
3. Invest in Digital Tools and Training
Use grants and incentives to:
- Build or improve your website
- Automate operations
- Upskill your team
Programs like the State Trade Expansion Program (STEP) or regional innovation clusters can help—though some of these are at risk of elimination under current federal proposals.
4. Advocate and Collaborate
Get involved in local and national advocacy to protect the interests of minority businesses. Join voices calling for a fully funded MBDA and targeted federal programs that support equity and inclusion.
I. What qualifies as a minority-owned business in the U.S.?
A business that is at least 51% owned, operated, and controlled by individuals from a recognized minority group (e.g., Black, Hispanic, Asian American, Native American).
II. How do I get certified as a minority-owned business?
Through agencies like the SBA (8a), NMSDC, or your state’s minority business office.
III. Are there grants specifically for minority entrepreneurs?
Yes—look into SBA Microloans, CDFIs, local grants, and initiatives from corporate supplier diversity programs.
IV. Is the MBDA still active?
Despite efforts to dismantle it in 2025, court injunctions have temporarily preserved some MBDA functions. Its future depends on ongoing legal and political decisions.
V. What resources are available if MBDA support is reduced?
Look into state-run business development centers, nonprofit incubators, and online communities focused on minority entrepreneurship.
photo credit:
iStock.com/kali9