By Colin Allred
As a proud Black congressman representing all the people of Texas, I know the invaluable contributions that Black-owned businesses make to all our communities. During my time on the campaign trail running to be the first Black U.S. Senator from Texas, I have seen firsthand how these businesses, whether it be the Breakfast Klub restaurant or Goode Looks Barbershop, are more than just enterprises — they are the backbone of economic growth and progress in their communities and every corner of our state.
When Black-owned businesses thrive, they not only provide jobs and stimulate economic development, but they also play a crucial role in bridging the economic wealth gap that has persisted for far too long in cities across Texas.
The success of Black-owned businesses is critical to the future of Texas, but this success is not guaranteed. To ensure their survival and growth, these businesses need access to the same resources that have long been available to their counterparts. Nearly half of all Black-owned businesses have been open for less than two years. To help these businesses become more established, we must increase access to mentoring programs for Black entrepreneurs, Small Business Administration (SBA) programs and planning support in the early years. Black-owned businesses also need access to early capital, and increased ability to participate in the government contracting process. Without these essential tools, the potential of Black-owned businesses to grow our economy and create jobs for Texans will remain unrealized.
We can help these businesses by taking several critical steps, such as expanding the pool of grants from the Minority Business Development Agency, which I was proud to help make permanent to support future generations of Black entrepreneurs. I will keep working to ensure this agency delivers on that promise.
We must also increase our investment in SBA programs that can provide invaluable counseling, training and funding. According to federal contracting data, Black businesses received less than 1.3% of all government contracts awarded in Fiscal Year 2023. I believe that we can and must do better by offering additional insight into the contracting process through seminars and informational meetings with representatives from the contracting agencies, and more targeted outreach to offer a level playing field and provide better access to the government contracting process. As your Senator, I will make it a priority to do just that.
In Texas, there are more than 400,000 Black-owned businesses. These entrepreneurs embody the very essence of the American dream. They have poured their money, time, and talent into creating opportunities not just for themselves, but for their families and our state. They are the economic engines that drive progress, fueling the hopes and dreams of countless Texans.
One particularly striking example of this success can be found in the Austin area. A recent study ranked this area as the number one place for Black-owned businesses in the entire country. Between 2018 and 2020, Austin saw an 88.27% increase in the number of Black-owned businesses. This remarkable growth is a clear indication of what is possible when the right conditions are in place for Black entrepreneurs to succeed.
The success of Black-owned businesses in Austin should serve as both an inspiration and a call to action. It tells us that we must continue to create opportunities for these businesses to access the capital and opportunities necessary to build stronger, more resilient economic communities and I am dedicated to working towards that end in the Senate.
The future of Texas depends on our ability to create an economy that works for everyone. Black-owned businesses are central to this vision. When I am your Senator, I will work with both parties to ensure that every Black entrepreneur has the tools and resources they need to achieve their version of the American dream.
